For what reason are people worried about the future of Social Security?

People worry about Social Security's future primarily because demographic shifts, like lower birth rates and longer lifespans, mean fewer workers are paying in relative to more retirees collecting benefits, straining the system's finances and risking benefit cuts, with projections suggesting that by the mid-2030s, only a portion of scheduled benefits might be payable without congressional action, leading to uncertainty about future retirement income.

Why are people worried about the future of Social Security?

People worry about Social Security's future due to an impending funding shortfall, projected to deplete trust fund reserves around 2034, meaning benefits could be cut by about 20-25% unless Congress acts, primarily driven by an aging population (fewer workers supporting more retirees) and political inaction, creating uncertainty for retirement planning. Concerns also arise from potential operational risks, staffing cuts, and rhetoric that downplays the need for reform, all threatening timely and full benefit delivery. 

What is happening on March 31, 2025 with Social Security?

At the conclusion of the transition period, on March 31, 2025, SSA will enforce online digital identity proofing and in-person identity proofing. SSA will permit individuals who do not or cannot use the agency's online “my Social Security” services to start their claim for benefits on the telephone.

Why is Social Security at risk?

The cause of the shortfall is simple: The number of people claiming benefits is rising, while the income from working-age people contributing to Social Security via payroll taxes is projected to stay relatively flat.

What is causing the Social Security crisis?

Much of the crisis is being fueled by the overall aging of the U.S. population. Payroll taxes are the primary source of Social Security's funding—and the ratio of working people to retirees has been steadily shrinking since 1950, when there were 16.5 workers to support each retired beneficiary. Today, the ratio is 2.7.

Americans are worried about the future of Social Security: AARP study

What is going on with Social Security in 2025?

In 2025, Social Security beneficiaries saw a 2.5% Cost-of-Living Adjustment (COLA), raising average benefits by about $49 monthly, alongside an increased Social Security tax cap for high earners to $176,100. Significant legislative changes, like the Social Security Fairness Act, started impacting taxes and benefit adjustments for some, while the ongoing debate about long-term solvency continued, with projections showing trust fund depletion by the 2030s if no action is taken. 

What does Suze Orman say about when to take Social Security?

Suze Orman strongly advises waiting as long as possible to claim Social Security, ideally until age 70, to maximize your monthly benefit, explaining that delaying provides a significant guaranteed annual increase (around 8%) and offers crucial inflation protection for a longer retirement. While some suggest claiming at 62 and investing the money, Orman counters that most people don't invest it and end up with less income long-term, emphasizing that a higher monthly check with cost-of-living adjustments (COLAs) is a better, more secure financial tool, especially for the surviving spouse. 

How likely is it that Social Security will go broke?

Introduction. As a result of changes to Social Security enacted in 1983, benefits are now expected to be payable in full on a timely basis until 2037, when the trust fund reserves are projected to become exhausted.

What changes are coming to Social Security in 2026?

1. Benefits will increase by 2.8% The 2026 Social Security cost-of-living adjustment (COLA) is 2.8%. This is the increase all Social Security beneficiaries, including disabled and spousal beneficiaries, will receive, beginning with their January check.

How to keep your Social Security safe?

To protect your Social Security, safeguard your number by not carrying your card, shred documents, use strong passwords, and watch for phishing scams, while also securing your online account with the SSA by adding fraud prevention blocks and regularly checking your earnings record for suspicious activity to prevent identity theft and misuse. 

What are the two big changes coming to Social Security?

COLA increase, higher Medicare costs and a new tax break will affect beneficiaries' bottom lines in the year to come. From the highly anticipated cost-of-living adjustment (COLA) to a less-welcome hike in Medicare premiums, Social Security beneficiaries will see several big changes in 2026.

Is it better to start Social Security in December or January?

Starting Social Security in January is generally better than December because you'll receive an extra month of benefits and potentially benefit from the new year's Cost-of-Living Adjustment (COLA), plus it allows you to capture more Delayed Retirement Credits (DRCs) if you're waiting past Full Retirement Age (FRA). Waiting until January locks in a full month of credit and ensures you get the latest COLA before potentially working into the new year, maximizing your benefit, notes MassMutual and Rand Financial Planning. 

What is the highest Social Security check anyone can get?

The maximum Social Security benefit varies by retirement age, with the highest possible monthly amount in 2026 being around $5,181 if you wait until age 70, while claiming at Full Retirement Age (FRA) yields about $4,152, and claiming at age 62 results in approximately $2,969. To get the maximum, you must have earned the taxable maximum for at least 35 years, had significant earnings above the annual wage base ($184,500 in 2026), and delayed claiming benefits past your FRA. 

What does Warren Buffett say about Social Security?

Warren Buffett's core message on Social Security is that cutting benefits is a major mistake, as a rich country must care for its elderly, but he acknowledges the system's financial challenges and suggests solutions like raising the taxable income cap for Social Security taxes, slightly increasing the payroll tax, and gradually raising the retirement age, urging Congress to act before trust fund insolvency forces drastic cuts. He sees Social Security as a vital, successful government program that needs responsible adjustments, not benefit reductions. 

Should we be concerned about Social Security benefits?

Although current workers don't need to worry about Social Security fully running out of funds in their lifetime, the reality is that without some kind of policy intervention, the program will pay lower benefit amounts for most.

What will happen if Social Security goes away?

Reduced Benefits

If no changes are made before the fund runs out, the most likely result will be a reduction in the benefits that are paid out. If the only funds available to Social Security in 2033 are the current wage taxes being paid in, the administration would still be able to pay around 75% of promised benefits.

Are seniors on Social Security getting a raise in 2025?

Yes, Social Security recipients received a 2.5% Cost-of-Living Adjustment (COLA) for 2025, effective January 2025, increasing average benefits by about $48 monthly; this was announced in late 2024, with the next COLA for 2026 announced in October 2025. The 2025 increase followed a larger boost in 2024, reflecting lower inflation, and notifications for the 2025 raise were sent out in late 2024. 

How many people have $500,000 in their retirement account?

While exact numbers vary by source and year, recent data suggests around 7-9% of American households have $500,000 or more in retirement savings, though many more have significant savings in the $100k-$500k range, with a large portion of the population having much less, highlighting a big gap between the average (which is higher due to wealthy individuals) and the median (typical) saver. 

What will replace social security benefits?

In the proposals presented to the Commission, the use of retirement bonds--and annuities based on bond accumulations- would also replace the entire benefit structure of Social Security for the future.

Will Social Security run out of money if so when Forbes?

Since 2010, annual costs have exceeded tax income. The system has survived by drawing down the Trust Fund—but that fund is running out. By 2033, unless Congress acts, Social Security will only be able to pay 79% of promised benefits. This isn't a forecast anymore—it's a countdown.

What is one reason Social Security is running out?

One major reason Social Security faces funding shortfalls is demographics: more retirees are drawing benefits while fewer workers pay into the system, driven by the aging Baby Boomer generation and lower birth rates, reducing the worker-to-beneficiary ratio and straining funds. Additionally, wage growth for top earners outpaces the income cap for Social Security taxes, meaning a smaller portion of total earnings is taxed, further decreasing revenue. 

How long will Social Security be safe?

They also look at current and projected payroll tax contributions that go into the Trust Funds. SSA actuaries use this information to figure out whether there will be enough to pay all scheduled benefits. The most recent Trustees Report, released in 2023, projects that the Trust Fund reserves will be depleted in 2034.

What does Dave Ramsey say about taking Social Security?

Dave Ramsey cautions on Social Security dependence

But Ramsey said, "These 35% of folks are going to learn the hard way that what they don't know can and definitely will hurt them when they retire." Ramsey insists that relying too heavily on Social Security for retirement income is a dangerous move.

How many people retire with only Social Security?

A plurality of older Americans, 40.2 percent, only receive income from Social Security in retirement.

What is one of the biggest mistakes people make regarding Social Security?

Claiming Benefits Too Early

One of the biggest mistakes people make is claiming Social Security benefits as soon as they're eligible, which is at age 62. While getting money sooner can be tempting, claiming early has a significant downside: your monthly benefit will be reduced.