59% of working Americans fear Social Security will dry up—here's how to plan ahead
Among nonretired Americans, 59% are worried that Social Security won't be available by the time they stop working, according to a recent survey from DepositAccounts.
The program drying up would be a huge problem for millions of Americans. Currently, Social Security payments make up more than half the income for 40% of retirees, according to the Social Security Administration.
The issue for the next generation of retirees is that the coffers are running low. At the current rate, unless Congress intervenes, the trust fund for retirees will be exhausted by 2033, at which point the government will only be able to pay out 79% of the scheduled benefits.
"It's not that far away. We're creeping up on it," says Jaime Eckels, a CFP and partner at Plante Moran Wealth Management. "It's something that's on people's minds now more than it's ever been."
Notably, a reduction in benefits is a far cry from payments drying up altogether. For many retirement savers, though, it's not hard to imagine a world where a once ubiquitous program goes by the wayside. After all, how many young people do you know with a pension?
But if you're worried about receiving diminished benefits, it's possible to plan ahead. Here's how experts say to prepare.
If you've ever received a paycheck, you likely have an idea of how Social Security works.
Workers pay Social Security taxes, typically via payroll deduction, on earnings up to a certain amount — $176,100 for 2025. If you're under the threshold, you and your employer split the cost, each paying in 6.2% of your income. That money goes into a trust fund from which the government pays out benefits to retirees, as well as their survivors and people with qualifying disabilities.
When you retire, the amount of your payout depends on how much you made during your career and when you claim the benefits. Generally, the benefit is designed to replace around 40% of your pre-retirement income.
If you think there's a possibility that the program might go away, start by seeing what your financial plan would look like without it.
"Most of the time, we'll run our retirement projections with a reduction in Social Security anywhere between 50% and 100%," says Doug Boneparth, a certified financial planner and founder of Bone Fide Wealth.
Eckels goes through the same exercise with her clients. "If there's a concern, which for many young people there is, then let's figure out a way in which we can plan around not having Social Security," she says.
It may make sense for you to work with a financial advisor of your own, who could walk you through these sorts of simulations. But for some back-of-the napkin math, you can plug your current savings, monthly contributions and expected returns into an investing calculator, like this one from the Securities and Exchange Commission.
Once you determine how much you'll have at the time of your retirement, divide by 25. An old rule of thumb dictates that you can safely withdraw around 4% of your retirement portfolio annually (assuming a certain investment mix) for 30 years without running out of money.
Would that be enough for you to live on? If you're decades away from retirement, it can be tricky to tell, says Eckels. "Your income, your job, your life could change in a million different ways between now and retirement," she says.
Nevertheless, if the number you see falls short of what you may be envisioning, it's up to you to get yourself on track, financial pros say. And the earlier you start, the better.
"When you're younger, you can potentially account for that," says Eckels. "You can save more. You can be more aggressive when it comes to how much you're putting away for retirement."
For those closer to retirement age, it may be wise to consider adding other sources of income for when you leave your 9-to-5, such as picking up consulting work or investing in income-producing rental properties.
And if you plan this way and Social Security comes in as expected, you can consider it a bonus. But thinking about your future without it "further emphasizes the need to take control of your own financial destiny," says Boneparth. "Retirement has been placed on the individual more than ever before."
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