A recent report has set off alarm bells for retirees: if Congress doesn't act soon, dual-income couples could see their Social Security benefits slashed by up to $16,500 annually starting in 2033. Without significant changes, many retirees face a steep drop in their monthly checks, and it's worth paying attention to now.

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Earlier this year, the Social Security Administration (SSA) wrote a letter to the Senate urging action on the projected depletion of the Federal Old Age and Survivors Insurance (OASI) Trust Fund. This OASI fund pays Social Security benefits to retired workers, their families, and the families of deceased workers.

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In the letter, the administration wrote, "The asset reserves ... of the OASI Trust Fund are projected to fall below 20 percent by the beginning of calendar year 2033 based on our intermediate set of economic, demographic, and programmatic assumptions. Moreover, we project that the reserves of the OASI Trust Fund will be depleted soon after, during 2033, and only about 79 percent of benefits scheduled in current law will be payable at that time if no legislative action is taken."

This program is paying out more than it brings in from payroll taxes, which is why it is running out. So, once the depletion date hits, the program will only be able to pay what it brings in, resulting in retirees facing a 21% cut in their benefits. And it's not just couples who will be affected. Single-income individuals will also face an estimated cut of about $12,400 annually.

If legislative changes aren’t made soon, retirees and other beneficiaries across the board will feel the effects of this cut. The Committee for a Responsible Federal Budget (CRFB) has stated that low-income retirees will feel the blow particularly hard and could see their benefits cut by $10,000. While this is a smaller number than higher-income retirees, it represents a larger share of their income and could really hurt those who are already struggling.

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So, what can be done?

Some experts suggest raising the Social Security tax rate, stating that raising it from its current 6.2% to 7.75% will at least cover 100% of benefits through 2034. Others have also said that a mix of tax increases and benefit reductions might be the solution.