Will Social Security Be There in 10 Years? What You Need to Know
If you're in your 50s or early 60s, you've probably heard conflicting headlines about Social Security. One minute it’s “going broke,” the next it’s “more secure than ever.” So what’s the real story—and should you be worried about your benefits?
Here’s what you need to know.
1. No, Social Security Is Not Going Bankrupt
The Social Security Trust Fund is projected to run short of reserves around 2034, according to the latest reports. But that doesn’t mean benefits will vanish. It means that unless Congress makes changes, the system would only be able to pay out about 77% of scheduled benefits based on ongoing payroll taxes.
That’s a pay cut — not a shutdown.
2. Congress Has Fixed This Before
This isn’t the first time Social Security has faced a funding shortfall. In 1983, lawmakers came together on a bipartisan basis to raise the retirement age slightly and increase taxes. The result? The program got decades of extended life.
While Congress hasn’t taken action yet, it’s worth noting that fixes like raising the payroll tax cap or adjusting benefits for high earners are on the table—and generally popular with voters.
3. Your Age Matters
If you're in your mid-50s or older, it's very unlikely your benefits will be significantly reduced. Why? Because Social Security reform proposals almost always preserve full benefits for people close to retirement and phase in changes slowly over time.
In other words, the closer you are to claiming, the more likely your benefits are to stay intact.
4. Build a Plan
Social Security is a key piece of retirement income, but it’s just one piece. If you’re in your peak earning years now, this is the time to:
Maximize retirement contributions
Reduce debt
Review your claiming strategy (i.e. when you, and your partner, plan to apply for social security benefits)
And most importantly — make sure your retirement plan isn’t relying too heavily on any one income source.
Don’t Panic
While it’s smart to stay informed, don’t let fear drive your financial decisions. Social Security is under pressure, but it's not disappearing. With smart planning and a long-term view, you can navigate whatever changes may come. I enjoy this episode of the Optimist Economy podcast called “Social Security Don’t Miss”
If you’re ready to build (or review) a plan, factoring in social security income, I’d love to help. We can discuss social security survivor benefits and managing tax brackets in retirement as well.
