Is Social Security Really Going Away?

If you’re feeling uneasy about the future of Social Security, you’re in good company. In fact, about 72% of adults worry that Social Security might run out in their lifetime.* And that’s true whether people are currently collecting benefits or planning to rely on them in the future.

It’s no surprise these worries are popping up. Headlines like “Social Security Trust Funds Projected to Be Depleted in 2035” can make anyone anxious. Often, these fears lead people to start claiming their benefits early—a choice that could have lasting effects on their financial future.

But here’s the thing: Social Security probably isn’t going anywhere. It may go through some adjustments, but there are things you can do right now to be ready for any changes and to protect your retirement income.

First Things First: Is Social Security Really Going Away?

Social Security has been one of the most popular and dependable programs in the country, providing millions of retirees (And those that are disabled) with a steady income that supports their way of life. Ignoring or underfunding it could lead to a political backlash, which lawmakers generally try to avoid. So instead of big overhauls, you’re more likely to see gradual adjustments that help keep the program stable. Even if changes are approved, it’ll take time—probably a decade or more—before they kick in.¹

And even in a worst-case scenario where Congress doesn’t step in, Social Security won’t just vanish. Payroll taxes under the Federal Insurance Contributions Act (FICA) would still cover around 80% of benefits for the long haul.²

Second, Don’t Let Fear Drive Your Decisions

One of the biggest mistakes people make is filing for Social Security benefits too early, locking in reduced payments for life. There’s a common misconception that your payments will “auto-adjust” to 100% of your full retirement benefit once you reach full retirement age, but that’s not true. Filing early locks in those lower payments for good—not only for you but also for any spousal benefits linked to yours. Waiting to claim can mean higher payouts for both you and your spouse.

What Early Filing Means for Your Benefits

To get a clear picture of how your decision affects your benefits, log in to your Social Security account at ssa.gov/myaccount. If you don’t have an account yet, it’s easy to create one and I strongly recommend doing so even if you are years away from applying.

After obtaining your Social Security statement, (See sample below) take a look at two key things:

1. Your Full Retirement Age (FRA): This is when you qualify for 100% of your benefits—and yes, this includes spousal benefits.

2. Personalized Monthly Estimates: This shows what you’d receive monthly based on different filing ages.

Even if you receive the full benefit, it may not cover all your retirement needs. This is why having a solid personal retirement plan is essential.

Third, Consider Other Sources of Retirement Income

Your financial professional can help you identify all your sources of retirement income, which will help you see how Social Security fits into the big picture. Very few can rely solely on Social Security and the program was never designed to provide 100% of one’s income needs. It is imperative that one supplements their income from other sources. Income sources might include:

IRAs, 401(k)s, 403(b)s, and other tax-deferred accounts
Payouts from pensions
Income from other savings or investments
Any part-time employment
Your spouse’s Social Security benefits

To create a complete retirement plan, make sure your financial professional is aware of all your accounts. If you have multiple IRAs in different places, for instance, it might be worth discussing whether consolidating them makes sense. Your financial professional can help you estimate what each income source will bring in, giving you a clearer picture of your financial future.

Wrapping It Up

Even though Social Security funding might be tight, the program isn’t disappearing. Filing too early out of worry could mean locking in lower benefits for both you and your spouse. Taking stock of all your income sources can provide helpful insight.

Don’t Let Social Security FOMO Take Over

Making decisions around Social Security is best done calmly and with solid information—not fear. Acting too quickly can lead to choices that might hurt your long-term financial well-being. Consider the pros and cons of filing early vs. waiting, looking at factors like your life expectancy, other income sources, and taxes. If it all feels like a lot, your financial professional is there to guide you.

Ready for the Next Step?

Reach out to your financial professional to discuss how Social Security income fits into your overall financial plan.

Have questions or something I may be able to help you figure out, schedule a quick complimentary call with me by clicking HERE to see my online calendar

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All the best.

Rick Fingerman, CFP®, CDFA™, CCPS®

617-630-4978

Rick@PlanWithFPS.com

Financial Planning Solutions, LLC (FPS) provides this blog for informational and educational purposes only. Nothing in this blog should be considered investment, tax, medical, or legal advice. FPS only renders personalized advice to each client. Information herein includes opinions and source information that is believed to be reliable. However, such information may not be independently verified by FPS

* More than three in four US adults believe the Social Security system needs to change. Nationwide, 7/24.

1 Social Security in 2024 and Beyond, marybethfranklin.com, 12/23.

2 When to Start Receiving Retirement Benefits, Publication No. 05-10147, ssa.gov, 5/24.