Most Americans Fear Social Security Won’t Survive

A recent DepositAccounts survey found that 59% of working Americans genuinely believe Social Security might ghost them before they retire. That’s more than half the workforce having trust issues with a government program. Honestly, we’ve seen more reliable relationships on reality TV.

Here’s the kicker: Social Security isn’t just beer money for current retirees. According to the Social Security Administration, these retirement benefits make up more than half the income for 40% of retirees. We’re talking about a program that keeps millions of Americans from eating cat food during their golden years. Suddenly, this isn’t so funny anymore.

The math gets even more entertaining. Unless Congress pulls a miracle out of their legislative hat, the Social Security trust fund will be emptier than a movie theater showing a three-hour documentary about tax law by 2033. At that point, the government could only cover 79% of scheduled benefits.

“It’s not that far away. We’re creeping up on it,” explains Jaime Eckels, a certified financial planner at Plante Moran Wealth Management. “It’s something that’s on people’s minds now more than it’s ever been.” Translation: the anxiety is real, folks.

Now, before you start hoarding canned goods, let’s clarify something. We’re talking about reduced Social Security benefits, not the program pulling a disappearing act like your college roommate who still owes you fifty bucks. However, for many workers, it’s easy to imagine reliable retirement programs becoming as extinct as flip phones. After all, when did you last meet someone under 40 who expects a pension plan? Exactly.

Understanding How Social Security Actually Works

If you’ve ever stared at your paycheck wondering where that Social Security deduction vanishes to, here’s the scoop. You and your employer each fork over 6.2% of your earnings (up to $176,100 in 2025) into a massive trust fund. This money doesn’t chill in a personal account with your name embroidered on it. Instead, it flows directly to current retirees, disabled individuals, and survivors of deceased workers. Think of it as the world’s largest game of financial hot potato.

When you eventually retire, your monthly Social Security check depends on two factors: how much you earned throughout your career and when you decide to start claiming benefits. The system aims to replace roughly 40% of your pre-retirement income. Of course, that percentage can vary based on your earnings history and whether you were smart enough to avoid claiming benefits the moment you reach Social Security retirement age of 62.

Planning for Reduced Social Security Benefits

Here’s where things get interesting from a planning perspective. If Social Security’s future makes you nervous, start by imagining your retirement without it entirely. Think of it as financial pessimism with a purpose.

“Most of the time, we’ll run our retirement projections with a reduction in Social Security anywhere between 50% and 100%,” says Doug Boneparth, a certified financial planner and founder of Bone Fide Wealth. Basically, financial advisors are professionally trained to assume the worst-case scenario. It’s like being a meteorologist, but for money.

Eckels takes the same approach with her clients when developing retirement planning strategies. “If there’s a concern, which for many young people there is, then let’s figure out a way in which we can plan around not having Social Security,” she explains. In other words, let’s pretend Social Security is that friend who always says they’ll show up to help you move but never actually appears.

Calculating Your Retirement Without Social Security

While working with a financial advisor provides personalized guidance through these scenarios, you can also crunch some basic numbers yourself. Try plugging your current savings, monthly contributions, and expected returns into an investing calculator like the one offered by the Securities and Exchange Commission. It’s free, which is already better than most financial advice you’ll get.

Once you see your projected retirement balance, divide that number by 25. This calculation relies on the classic 4% withdrawal rule. The idea suggests you can safely withdraw 4% of your retirement portfolio each year for 30 years without your money disappearing faster than free pizza at a college dorm.

Would that annual amount cover your living expenses? If you’re decades from retirement, this exercise can feel like trying to predict what you’ll want for dinner next Thursday. As Eckels points out, “Your income, your job, your life could change in a million different ways between now and retirement.” True, but at least you’ll have some numbers to work with.

Strategies Based on Your Age for Social Security Planning

If the numbers fall short of your expectations, don’t panic and start researching careers that don’t require retirement. Instead, take action. The earlier you start, the more options you have available.

“When you’re younger, you can potentially account for that,” Eckels notes. “You can save more. You can be more aggressive when it comes to how much you’re putting away for retirement.” Translation: being young and broke now beats being old and broke later.

If you’re closer to retirement, consider building additional income streams for your post-career years. This might include:

• Consulting work in your field
• Investing in income-producing rental properties
• Part-time employment after retirement
• Creating passive income through investments

Basically, diversify your income like you diversify your Netflix viewing habits.

Will Social Security Run Out of Money? The Reality Check

Here’s the silver lining in this financial comedy: if you plan this way and Social Security delivers as promised, you can treat those benefits as a pleasant surprise. Like finding twenty dollars in your winter coat pocket, but every month for the rest of your life.

However, as Boneparth puts it, thinking about your future without Social Security “further emphasizes the need to take control of your own financial destiny. Retirement has been placed on the individual more than ever before.” In other words, you’re the star of your own retirement show, and nobody else is writing the script.

The Social Security trust fund depletion date of 2033 might seem distant, but it’s closer than you think. Understanding the impact of Social Security cuts on retikers requires proactive financial planning for reduced benefits. Whether you’re exploring Social Security spousal benefits or Social Security disability benefits, the key is preparation.

The bottom line? While you can’t control what happens to Social Security, you can absolutely control how well you prepare for retirement. And that preparation starts with the financial choices you make today. Plus, if you plan well enough, you might even afford the good cat food.