Social Security's insolvency date is now a year earlier. Here's how it could impact your benefits.

Social Security is on track to deplete its trust funds by 2034, one year sooner than previously forecast, when the federal retirement program will be required to cut monthly benefits by about 20%. 

The new projection, issued Wednesday in the Social Security Board of Trustees' annual report, is partly due to increased costs from the Social Security Fairness Act, which boosted benefits for millions of retirees, the report said. Last year's report had forecast that the program would need to cut benefits starting in 2035, impacting Social Security's 70 million beneficiaries.

The Social Security program has been staring down a financial crunch for years, although the trust funds' depletion date can change from year to year due to fluctuations in the economy and the number of beneficiaries. The trust fund is slated to be depleted partly due to the wave of baby boomer retirements and an aging U.S. population, which means its reserves are drawing down because spending is outpacing income. 

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