Worcester County economy could be hardest hit from potential Social Security cuts, report says

Salisbury, Md. – Worcester County may be hit the hardest by Social Security cuts six years from now, a recent report says.

According to SmartAssets, a retirement planning and financial advisor company, The Social Security Trust Fund is now six years from running out, which will bring with it a potential 22% benefit cut.

SmartAsset representatives say the study examines which areas in Maryland could feel the deepest impact from slashed Social Security benefits, including Worcester County. Senior Economic Analyst at SmartAsset Toby Nelson said, overall, Maryland communities may be impacted less than some other states.

“Nevertheless, Maryland does have several counties where retirement income is structurally important to the local economy,” he said. “In these places, social security cuts may not just affect retirees, but also the businesses depending on their spending. So, Worcester County is a prime example in terms of an area that … could see acute local economic impact from a cut in Social Security.”

In Worcester County, he said, benefits received from social security recipients “constitute nearly 10% of all income generated in the county.”

However, there are two things he says residents should keep in mind. The first is that spending by retirees in some parts of Maryland, including Worcester and Somerset Counties, is important for supporting local businesses and jobs and bolstering tax revenue.

“So, if the income of retirees is reduced, the effects could ripple beyond beneficiaries and hit restaurants, retailers, and other employers that depend on consumer spending,” he said.

The second point, he said, is that a 22% cut in Social Security benefits in 2032 is “possible but not inevitable.”

“Our analysis highlights areas that may most acutely feel an impact if lawmakers fail to act,” Nelson said. “But of course, this is not certain. There’s still some runway left.”