Will Social Security be there for me?

Social Security is an important part of most Americans' plans for retirement. No one can predict what will happen to Social Security, but we have cause to worry about the future of this program.

The problem is simple: Fewer workers support more retirees. The Social Security Administration keeps a running count of the number of workers and beneficiaries the program covers in the OASDI Trustees ReportOpens in a New Window.‍ ‍ ^{See note 1} When the program began in 1945, there were more than 40 workers to support each recipient. By 1955, there were fewer than 9. Now there are about three workers for every Social Security recipient.

Social Security is a pay-as-you-go program. Workers pay into the program so retirees can take money out of it. The amount in the Social Security trust is decreasing, according to the 2020 annual reportOpens in a New Window.‍ ‍ ^{See note 1} Unless changes are made, Social Security will only be able to pay 76 cents on the dollar by 2035.

There are many possible ways to fix Social Security. The uncertainty lies in the "how" and the "when." Without significant change, many people could see reduced benefits.

• Folks very near, or living in, retirement would probably not be affected.
• Younger people would most likely experience the largest reduction in benefits.
• Lower-income individuals rely on Social Security for higher percentage of their retirement income. Reduced benefits might mean they can't successfully retire.
• Higher-income retirees could see reduced benefits that impact their later life goals. They may have to reconsider their standard of living or where they will live. They may have to limit financial help to family members or charitable giving. Visits to see grandchildren may be fewer and farther between.

You can't control what will happen to Social Security. But you can plan ahead now in case there's a reduction in benefits.

• Estimate your Social Security benefit using the Social Security Administration benefits calculatorsOpens in a New Window.‍ ‍ ^{See note 1}
• Consider what this benefit would afford you in retirement. What costs would you use it to cover?
• Consider how you would cover these costs if that benefit amount were reduced.
• Consult a financial professional to help you create a savings and investment strategy to cover any anticipated shortfall.

For more information, visit the Social Security websiteOpens in a New Window.‍ ‍ ^{See note 1}