The Future of Social Security: Time to Really Plan – Remember, Social Security was never intended to fully fund your retirement
For Gen X and Millennials, Social Security is both a foundation and a question mark. While it has long been a reliable component of retirement income, changing demographics and fiscal pressures are casting a shadow over its long-term stability.
As of May 2025, projections show that without legislative reform, the Social Security Trust Fund could be depleted by the mid-2030s. This doesn’t mean the program will disappear – current payroll taxes would still cover about 75 to 80 percent of promised benefits. However, a 20–25 percent reduction would be a serious adjustment for anyone planning to retire in the coming decades.
Why is this happening? The root causes are complex: fewer workers are supporting a growing population of retirees, people are living longer, and economic trends have reshaped wage growth and employment stability. On top of that, political deadlock continues to delay reforms that could stabilize the system.
For those currently between the ages of 35 and 55, it’s wise to plan with caution. Adjusting expectations is a smart first step – consider using the reduced benefit estimates when building your retirement model. This creates a buffer and allows you to plan with greater confidence. Increasing your personal savings rate is also key. Many of our clients are aiming for retirement contributions of 15 to 20 percent of their gross income, moving beyond the conventional 10 to 15 percent guideline to account for potential shortfalls.
Understanding how and when to claim Social Security can also make a major difference. For those born after 1960, the full retirement age is 67. Taking benefits early – say, at 62 – results in a permanent reduction of up to 30 percent. Delaying your claim beyond your full retirement age increases your benefit by 8 percent per year up to age 70, offering one of the most reliable returns available in today’s market, especially in a reduced-benefit scenario.
Several policy reforms could reshape the future of the program, including raising or eliminating the payroll tax cap, changing how benefits are calculated, further increasing the full retirement age, or adjusting the cost-of-living formula. While the exact outcome remains uncertain, staying informed and flexible is your best defense.
Most importantly, remember that Social Security was never intended to fully fund retirement. It remains an important piece of the puzzle – but only one piece. A sound retirement strategy includes a variety of income sources and assumes some policy changes will take place before you retire.
Your Retirement Road
The road to retirement will have twists and turns, shaped by policy changes, market dynamics, and personal milestones. A well-designed, flexible plan that adapts to your life and priorities is the best way to stay on track. Whether you’re in your 30s, 40s, or early 50s, now is the time to make strategic choices that will build confidence and resilience in the years ahead.
Your retirement deserves clarity, commitment, and a plan tailored just for you.
Let’s continue building your path to retirement – with confidence.
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