If you’re counting on income from Social Security in retirement, you need to know the Social Security Trust Fund just announced it’s now projected to run out of money one year earlier than expected – in 2033.

This isn’t speculation. This news comes directly from the Social Security Board of Trustees, in their 2024 annual report that was released June 20.

According to the report, cuts to Social Security could result in slashing your benefits by as much as 23%.

To give you some context, the average person receives approximately $2,000 in benefits every month. So, a 23% cut would reduce your income by $460 per month, or $5,520 per year. In 10 years, that adds up to $55,200 in lost income. Over 20 years, it’s $110,400.

So, it’s not chump change.

Unfortunately, that’s not the only problem with Social Security. For many retirees, the system has been quietly failing them for decades.

Here’s what’s going wrong (and why it matters more now)

Most retirees make a huge mistake when claiming their Social Security benefits.

According to research from economist Laurence Kotlikoff, 94% of Americans file for Social Security at the wrong time — and this mistake costs them an average of $182,000 in lifetime income.

Let that number sink in for a moment.

Even if Social Security was fully funded, most Americans still leave a small fortune on the table.

Now, with benefits at risk of being slashed, there’s even less margin for error.

On the surface, Social Security looks pretty straightforward: If you file for your benefits early, you get a smaller monthly check. If you delay filing for your benefits, you get a bigger check.

But in reality, it’s much more complicated than that..

According to an article for NASDAQ, there are 2,728 rules pertaining to benefits in the official Social Security handbook . And there are thousands of rules about those rules.

Social Security was already confusing. Now it’s a financial minefield – and one simple misstep could cost you tens of thousands of dollars, or more.–Ryan Thacker, B.O.S.S. Retirement Solutions

Why traditional filing advice could backfire

The standard advice from financial media today is to wait as long as possible to claim your benefits. Why? Because the longer you wait, the bigger the paycheck.

That sounds good in theory, but in today’s world, it can backfire. Here’s why:

Taxes – You could get taxed on up to 85% of your Social Security benefits, depending on your total income. The bigger the benefits check, the more taxes you could owe.

Medicare premiums – A larger benefit could push your income above certain thresholds — which could double or triple your Medicare premiums.

Trust Fund Risk – If you delay your benefits to age 70 and the trust fund runs dry in 2033, your higher check could still be cut by as much as 23% – possibly more.

It’s time to throw out the old playbook. Filing for Social Security isn’t just about your age. It’s also about your taxes, income, longevity, and now… insolvency risk.–Tyson Thacker, B.O.S.S. Retirement Solutions

What’s the solution?

There is no one-size-fits-all strategy.

But there is a way to ensure you get the most income when you file for your benefits. And it starts with getting a customized Social Security Analysis specifically for your situation.

B.O.S.S. Retirement Solutions offers this customized analysis at no charge for Utah residents – even if you’re not a client.

This free, customized analysis considers your age, health, taxes, IRA and 401K withdrawals, and other retirement income, as well as the latest insolvency projections.

The bottom line: This analysis is designed to help you get every penny from Social Security that’s rightfully yours.

Ryan Thacker from B.O.S.S. Retirement Solutions said, “Between you and your employer, you’ve contributed 12.4% of every paycheck to Social Security. Add that up over four-plus decades and it’s a massive number. We want to help you get it back — before Washington figures out more ways to take it away.”

The strategies used are best served for families who have saved more than $200,000 for retirement. If you have not filed for Social Security, schedule your free analysis now by clicking here.

About the Authors: Tyson Thacker and Ryan Thacker are the CEO and President of B.O.S.S. Retirement Solutions. They are published authors of the book, The B.O.S.S. Retirement Blueprint, Your Guide to a Secure and Independent Retirement. B.O.S.S. Retirement Solutions has helped 50,000 area families plan for a better, more secure retirement, and they have seven offices located throughout the Wasatch Front.

This is for illustrative purposes only, results may vary. Advisory services offered through B.O.S.S. Retirement Advisors, an SEC Registered Investment Advisory firm. Insurance products and services offered through B.O.S.S. Retirement Solutions. The information contained in this material is given for informational purposes only, and no statement contained herein shall constitute tax, legal or investment advice. The information is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. You should seek advice on legal and tax questions from an independent attorney or tax advisor. BOSS submitted applications and paid application fees to be considered for the Utah Best of State for Retirement Planning awards. The award results were independently determined by the awarding organization’s criteria (https://www.bestofstate.org/about.html) and the information BOSS provided in the applications. BOSS received the Utah Best of State award in 2019, 2020, 2021, 2022, and 2023. Our firm is not affiliated with the U.S. government or any governmental agency. Marketing materials provided by Infinity Marketing Services.