I’m a Retirement Planner: Where I Think Social Security Will Be in 10 Years
Written by
Laura Beck
Edited by
Zuri Anderson
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Social Security is a safety net most Americans believe they’ll be able to access when they retire. However, the important benefits program often feels at risk of being dismantled or depleted — now more than ever. That said, it has escaped disaster before, but will it do it again?
GOBankingRates talked with retirement planners to see what’s on the horizon for Social Security.
The Trust Fund Timeline Is Tightening
According to the 2024 Social Security Trustees report, there’s an important deadline coming up. Dr. Barbara O’Neill, certified financial planner (CFP), explained that the trust fund could be depleted by as soon as 2035.
If this happens, it could end up triggering a 17% cut to benefits. To make matters worse, the recent Social Security Fairness Act has actually moved this deadline up by six months.
The experts GOBankingRates spoke to are also keeping a close eye on this.
Expect Major Reform Proposals
Andy Smith, executive director of financial planning at Edelman Financial Engines, shared that change isn’t exactly new for Social Security. The program has evolved multiple times since its creation.
Looking ahead, Dr. O’Neill outlined several potential reforms that could be made. These include raising the early retirement age to 65 (from 62), increasing the wage cap beyond $176,100 or bumping up the FICA tax from its current 7.65%.
Trump’s Plans
The president is already making waves with his proposals for Social Security. He’s made promises to cut taxes on benefits, which might sound great for retirees’ wallets.
But experts warn it could have consequences — like a $2.3 trillion hit to Social Security’s budget — and that’s before any other changes kick in. That could mean Social Security would be gone sooner rather than later.
Changing Demographics
The uncertainties facing Social Security aren’t entirely political. Aaron Cirksena of MDRN Capital explained a fundamental challenge.
“More people are retiring and drawing benefits now, while fewer are entering the workforce to fund the program,” he explained.
Life expectancies are getting longer, too. So the system has to support retirees far longer than it was originally designed for.
The Program Will Likely Survive — With Changes
But it isn’t all bad news. Experts agreed that Social Security isn’t going away entirely. However, as Cirksena explained, “while Social Security will likely still exist in some form in 10 years, the possibility of reduced benefits is real if reforms don’t happen.”
What Smart Planners Are Recommending
Smith advised that you focus on controlling what you can control. It’s not productive to worry about what changes may or may not happen to Social Security.
So, he recommends maximizing your 401(k) plan participation and working with an advisor to develop a comprehensive retirement plan. If you build a retirement strategy that doesn’t rely on Social Security benefits alone, you won’t be impacted as much.
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