Should the Middle Class Really Be Worried About the State of Social Security? Experts Weigh In

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Social Security is one of the most widely used and misunderstood government programs in America. With headlines warning of funding shortfalls and political gridlock, middle-class retirees and those under 55 are left wondering whether the federal safety net program will be there when they need it.

GOBankingRates talked to experts to uncover whether the middle class really should be worried about the state of Social Security.

Under Pressure, Not Disappearing

Social Security remains a cornerstone of retirement planning for millions of Americans. However, its financial foundation is under increasing strain. The program’s trust funds are projected to be depleted by 2035.

“This does not mean that Social Security goes away entirely or that it runs out of money,” said Shawn DuBravac, an economist at Avrio Institute. “It means the program no longer has enough money to cover scheduled benefits.”

This looming shortfall is primarily due to demographic shifts, such as the baby boomers’ retirement and increased life expectancy, which have led to a higher ratio of beneficiaries to workers. In 2024, the Social Security Administration paid nearly $1.5 trillion in benefits to more than 72 million beneficiaries, highlighting the program’s extensive reach.

“If no changes are made, Social Security payments will rely exclusively on incoming payroll taxes, and these taxes are expected to cover only 77% of schedule benefits,” DuBravac said. “So, Social Security doesn’t run out of money, but benefits could be cut unless action is taken.”

What You Should Worry About

Middle-class Americans should be concerned about the potential for reduced benefits, delayed retirement ages or higher taxes.

Reduced benefits could mean retirees receive 20%-25% less than expected, which can be especially destabilizing for those without pensions or significant savings. Delayed retirement ages may require people to work longer than planned, potentially into their late 60s or 70s, while higher payroll taxes could shrink take-home pay during prime earning years.

“The middle class should worry about reduced future benefits, especially if Congress delays reform,” DuBravac said. “Certain parts of the middle class likely earn too much to qualify for need-based programs, but too little to self-fund retirement fully. These families will feel the most squeeze.”

What You Shouldn’t Worry About

Despite these issues, experts said Social Security is not on the brink of collapse. The program continues to collect payroll taxes and has broad political support, making complete dissolution highly unlikely.

“Social Security is a foundational part of the American retirement system, and it’s not going anywhere,” said Rob Rickey, a certified financial planner and chief growth officer at StraightLine. “But changes may still come, especially for younger workers, in the form of delayed retirement ages or adjusted benefit formulas.”

How Social Security Might Change

While Social Security isn’t going away, it won’t stay the same, either.

To ensure its long-term viability, policymakers will need to consider reforms, such as adjusting payroll tax caps, modifying benefit formulas or raising the retirement age.

Proposals have been made to gradually increase the full retirement age (FRA) to 69. For instance, one proposal suggests raising the FRA by three months per year for those age 62 starting in 2025, reaching 69 for those age 62 in 2032.

How To Prepare

Nevertheless, experts said middle-class Americans should prepare for potential changes in Social Security.

“As public benefits crumble or decline, it is wise to start thinking about saving more,” said Benjamin Talin, a public policy consultant and founder and CEO of More Than Digital. “So, think about maximizing your 401(k) [plans], IRAs or other retirement accounts now.”

Rickey said individuals should minimize their dependency on Social Security by building resiliency in their retirement plan.

“You can do this by increasing your personal savings, ensuring you are appropriately investing for your risk level and time horizon to continue growing your retirement assets, and by creating multiple streams of income for retirement,” Rickey said.

He added, “Also, do not forget about your spending. Understanding your budget and controlling costs can strengthen your ability to minimize the impact of any income reduction during retirement.”

Sources

• Shawn DuBravac, Avrio Institute
• Congressional Research Service, “The Social Security Trust Funds in 2024 and Beyond.”
• Social Security Administration, “Status of the Social Security and Medicare Programs.”
• Rob Rickey, StraightLine
• Congressional Budget Office, “Raising the Full Retirement Age for Social Security.”
• Benjamin Talin, More Than Digital

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