The Social Security Board of Trustees announced that the SS trust fund is on track to run dry in 2033. When it does, every current and future recipient will be subjected to automatic cuts that will slash benefits by 23% unless Congress gets its act together.

This story has been forming for two decades.

Social Security is a pay as you go system, funded by payroll taxes (the FICA line item on your pay stub). Every paycheck, you and your employer each pay 6.2% of your wages (up to the SS wage base, which in 2025 is $176,100) into SS. In the late 1970s and early ’80s, Congress enacted changes, which resulted in more money from taxes than was necessary to fund obligations, creating a surplus. That excess money accumulated in the Social Security trust fund, which acts as a buffer when collections don’t match payments.

Baby boomers, through no fault of their own, are the heroes and the villains in the story. During their working years, their raw numbers, along with congressional action, boosted the program’s finances. But as they retired, claimed their benefits and lived longer, boomers have been draining the trust fund’s surplus.

Starting in 2021, the trust fund began to shrink in absolute terms. In 2033, when the trust fund is “depleted,” the system does not halt (or “go broke”); rather, payroll taxes keep coming in and benefits keep going out. But the money coming in will only cover about 77% of promised benefits.

Just prior to the publication of the trustees’ report, economist Teresa Ghilarducci and her team at the Schwartz Center for Economic Policy Analysis at The New School wrote about what’s at stake when America’s retirement crisis hits a breaking point.

They noted that Social Security’s legal structure mandates that this scenario “would trigger across-the-board cuts to all retirees, regardless of income or need.” To put this 23% cut into perspective, the average Social Security retirement check in May was just over $2,000, but if the trust were to be depleted, this person would receive $1,540, a $460 reduction.

There are several options Congress could pursue, either individually or in combination, to fix Social Security.

Raise the payroll tax cap: Social Security taxes only apply to income up to $176,100 in 2025. If you make more than that, you stop paying Social Security taxes on the excess. Lifting this cap could solve a big chunk of the problem.

Increase payroll taxes slightly: Even a small bump could make a significant difference over time.

Adjust the benefit formula: This could mean slightly reducing benefits for higher earners while protecting those who depend on SS.

Gradually raise the retirement age: This is my least favorite option, because it punishes those who work in physically demanding jobs.

What can you do? Use your voice — pressure from millions of voters tends to focus the minds of feckless legislators.

Make sure you have created an account at ssa.gov and review your projected benefits — as a precaution, factor in a potential 20% reduction when planning your retirement.

Finally, boosting your retirement savings could act as a ballast against the uncertainty of the Social Security system.

Jill Schlesinger, CFP, is a CBS News business analyst. A former options trader and CIO of an investment advisory firm, she welcomes comments and questions at askjill@jillonmoney.com. Check her website at www.jillonmoney.com.