I’m worried that social security will run out before I retire. What should I do?

We’ve heard that Social Security is the case. There’s a shortage of money For years. If you’re a millennial or Zell, you may not be relying on this money when you retire.

The fate of social security is a hot topic among my clients. reddit. This chatter increased when President Donald Trump proposed it on the campaign trail. Plans to reduce social security taxes Put more money into retirees’ pockets. That’s a boon for current retirees, but researchers say they can do it Deplete Social Security Funds fasterwhich could hurt someone who retired in the near future.

Most people rely on social security to support their funds. Resignation savings. So I understand why that uncertainty about the future is painful. but, Social Security Payments Usually it’s not enough to pay for retirement costs. That’s why I’m so passionate about encouraging my clients to start saving now.

Constance Craig-Mason, a National Social Security AdvisorI agree.

As a national money coach and author I will crush your money goalsI don’t rely on Social Security to fund my retirement. And you shouldn’t either.

read more: Do I need to pay income tax to Social Security? Everything you need to know

Social Security Revenue System

Social Security is a government-run program that pays through payroll taxes. Employees pay 6.2%, employers pay 6.2%, and self-employed people pay 12.4% in full.

The money you pay with Social Security Payroll Tax will go directly to your current beneficiary, not to your personal savings account for you. So what you’re paying now is for the generation before you, and you’ll be paid based on what the next generation puts into the pool of money.

The amount you receive from Social Security depends on whether you are single or married, and how much you earned Your best year of 35 years And when you retire you are old. Most people can start claiming benefits at 62, but the longer you wait, the more monthly payments you make. Can be used Social Security Benefits Calculator We estimate what you plan to receive.

read more: How to sign up for my Social Security account and estimate your retirement benefits

Will social security exist when I retire?

Yes, social security may exist when you leave. However, you may not receive the full benefits offered to current retirees. Social Security Bureau’s 2024 Annual Report It turns out that the program is likely to be able to pay 100% of its current benefits until 2035. Retirees will then receive 83% of their scheduled benefits.

What does it look like? As of January 2025, Average Social Security Payments It costs $1,976 per month. If you receive that 83%, it will drop to $1,640 per month.

Is Social Security enough to fund your retirement?

No matter how frugal you are, your Social Security payments alone won’t make you pay enough to maintain your retirement needs. $1,976 – $1,640 if you retire after 2035, but not a trivial amount, it’s not enough, and probably not enough to cover the client’s living expenses.

Social Security is an important part of the monthly salary of many retirees, but it should not be your only retirement plan.

Do this instead of relying on social security

Rather than speculating about the fate of social security, I recommend putting together your plans now Grow your own retirement fund. Even if you don’t save much, a small start is better than pushing it into the road. The preemptive procedure I took here was to plan a traditional retirement and save enough money to retire early in my 40s.

1. Check your options and establish a retirement fund

Saving money for retirement can sometimes make you feel impossible From living wages to wages And you’re struggling to buy your rent, mortgage and other essentials. My first step is not to invest any money at all. Instead, we recommend that you review your options, set up your account, and be prepared to save when you can contribute.
We also strongly recommend that you learn how they started to talk to people in your life who have retired or are approaching retirement age.

2. Make the most of employer-sponsored plans

If it’s your job Provides 401(k) Or other retirement plans in the match, your best bet is contributing to that account until you reach the maximum each year. This is your best bet as your employer will meet some of your contributions and help you grow your money faster. By Safe 2.0 Act Resignation Changes, Depending on when the plan is set up, if you are part-time, you may also be eligible to contribute to your workplace planning.

My husband and I focus on contributing to our sponsor’s plans before investing elsewhere. This is an automatic way to make extra money for retirement without putting too much effort. This year, I can contribute $23,500 To 401 (k). If you are over 50 years old, you can donate an additional $7,500.

3. Next open the IRA

If you reach a 401(k) maximum contribution, then aim to invest in individual retirement accounts. The 2025 MAX IRA’s donation limit is $7,000.

Whether a Ross or a traditional IRA makes sense depends on current and future estimated tax rates. Both allow you to raise your money tax-free. A Roth IRA allows you to donate post-tax dollars, but traditional IRAs are funded with pre-tax dollars and are taxed if you withdraw. Many of my clients have opened brokerage accounts on behalf of their IRAs and are not aware that they lose their hard-earned money each year.

4. Put extra money into your mortgage now

A good way to help your Social Security income and retirement funds expand even further is to eliminate sudden costs. Owning your home completely removes one of your biggest expenses. This sounds like a noble goal, but that’s possible. I focused on retaliation $300,000 debt including my home over three years. If so Get a tax refundjob bonuses and other windfalls will be paid on a mortgage if possible. Every bit can lower your balance.

5. If possible, reduce housing costs

If you are accepting a relocation, you can consider locations with lower taxes and housing costs and spend more money towards your retirement goals. Ten years ago, my husband and I made the bold move to leave our hometown of New York City and settle in Charlotte, North Carolina. Every year, I save tens of thousands of dollars in taxes, car insurance and living expenses.

Even if you’re not ready to travel around the country, it can make a huge difference when you consider the low-cost regions of your area. I also decided to rent it in Charlotte. The money we spent on repairing and maintaining our homes freed up extra money for us.

6. Use a Health Savings Account

Healthcare is one of the biggest costs of resignation. So investing in your health now will save you money later. Get into the habit of filling tax accounts like Flexible spending accounts or Health Savings Account It helps you save on health costs. Please note that FSA accounts are provided through your employer. However, you can set up your own HSA.

These accounts don’t pay that much for healthcare purchases, testing, or procedures, so they encourage them to use these funds for the medical resources they need to maintain healthy habits in the long term. You can do it. You can then use your takeaway salary to focus on your retirement plan.

Focus on what’s in your control

You can’t accurately predict what will happen with Social Security, but you can take action right now Reduces financial anxiety About the future.

As Dr. Craig Mason encourages, “to build a sustainable and fulfilling retirement plan by focusing on social security benefits and wise savings strategies, intentional money management, and financial alignment.” When we focus, it’s important that uncertainty comes first.”

What’s the worst thing you can do? Assume Social Security covers everything. Instead, start planning today.