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The Social Security Board of Trustees has announced the program\u2019s combined trust funds are projected to cover all scheduled benefits in full until 2034 \u2014 one year earlier than projected \u2014 at which point only 81% of benefits will be payable.<\/p>\n<\/p>\n
In 2024, Social Security cost $1.48 trillion while only bringing in $1.42 trillion \u2014 resulting in a $67 billion decline in funds.<\/p>\n
And the problem might get worse. The Committee for a Responsible Federal Budget estimates that the One Big Beautiful Act (OBBBA) will accelerate the insolvency of the Social Security trust to 2032 \u2014 with retirement benefits cut by as much as 24% in late 2032. Plus, the Committee estimates an $18,100 annual benefit cut for a dual-earning couple retiring at the start of 2033. (1)(2)<\/p>\n
Government action will be necessary to address the ongoing funding problem. But in the meantime, Americans must deal with the prospect of reduced Social Security checks in the near future.<\/p>\n
So, what can people do to shore up their retirement savings?<\/p>\n
Social Security is largely a pay-as-you-go system, where current workers and their employers pay taxes that fund benefits, with the intention that when workers retire, the following generations will pay into the system to fund their benefits.<\/p>\n
There are also Social Security trust fund reserves earning interest that can contribute to benefits. Some beneficiaries may pay taxes on part of their benefits as well.<\/p>\n
As the population ages, the amount in benefits being paid out is exceeding how much the program takes in. This has been the case since 2021.<\/p>\n
Approximately 70 million beneficiaries in 2024 drew funds from Social Security, outpacing the taxes and interest being collected.<\/p>\n
Read more: Warren Buffett says you can\u2019t buy time \u2014 but landlords are finding a way. Here\u2019s how savvy real estate investors are avoiding 12 hours a month in tedious admin (for free)<\/a><\/strong><\/p>\n Shortly before former President Joe Biden left office, he signed the Social Security Fairness Act into law. The act unlocked benefits for a number of public workers. Critics of the bipartisan legislation argued the expanded benefits would hasten the depletion of the Social Security trust funds.<\/p>\n In addition, policy proposals made by President Donald Trump during his election campaign came under scrutiny for potentially putting the funds at further risk. These include eliminating taxes on Social Security benefits, ending taxes on tips and overtime, implementing tariffs and mass deportations.<\/p>\n Early in the year, it was announced that the SSA aimed to cut 12% of its staff \u2014 approximately 7,000 people \u2014 which critics argued would have a negative impact on services, including longer wait times.<\/p>\n The recent government shutdown is also expected to cause operational delays. While social security checks are still being paid, the SSA temporarily paused benefit verification and updates, as well as corrections to earnings records. What\u2019s more, the SSA has delayed their cost-of-living adjustment announcement for 2026. (3)<\/p>\n Social Security retirement benefits are meant to supplement your income, not replace it entirely. Yet, more than seven million Americans over the age of 65 receive 90% of their income from Social Security benefits, according to the Center for American Progress.<\/p>\n But smart planning can help ensure that you aren\u2019t relying on Social Security benefits alone to support you in retirement. Small steps \u2014 like maxing out your retirement accounts, investing wisely or generating sources of passive income \u2014 can make a big difference over time.<\/p>\n To start, increasing your savings as much as you can is still the best way to grow your nest egg. Money placed in a tax-advantaged 401(k) or IRA account can be invested in the stock market.<\/p>\n The farther away you are from retirement, the more time you have to take advantage of compounding. The more your portfolio grows, the less you\u2019ll be forced to rely on Social Security.<\/p>\n One thing to keep in mind while saving for retirement is investing in tried-and-true assets that have withstood the test of time \u2014 especially in a volatile market.<\/p>\n For instance, gold, widely regarded as a safe-haven asset, has been gaining popularity in this turbulent economic climate. The yellow metal has been one of the top performers in 2025, with prices surging roughly 58% year-to-date to reach a record high of $4,300 per ounce in mid-October.<\/p>\n \u201cThe metal has been on a tear, and it doesn\u2019t look like it wants to stop … With U.S.-China trade tensions being reignited in the last few days, investors have even more reason to hedge their long equity bets by diversifying into gold,\u201d said Fawad Razaqzada, market analyst at City Index and FOREX.com. (4)<\/p>\n One option is to open a gold IRA with the help of Thor Metals<\/a> and combine the tax advantages of an IRA with the hedging properties of gold.<\/p>\n Thor Metals is 100% American-owned and sources their metals from U.S. mint providers. They also offer free gold IRA setup as well as a 100% low price guarantee. And, if you want to sell off your precious metals at any time, Thor Metals offers hassle-free buyback with no fees<\/a>.<\/p>\n The best part? You can get up to $20,000 worth of complimentary silver<\/a> on qualifying purchases and a free gold IRA quick start guide when you sign up.<\/p>\n If gold doesn\u2019t sound right for you, another option \u2014 especially if time is on your side \u2014 is to use more conservative investment tools like certificates of deposit.<\/p>\n With the Federal Reserve having lowered its benchmark federal funds rate four times since last year, interest rates on traditional savings accounts have steadily declined. And with another rate cut likely at the Fed\u2019s next meeting at the end of October \u2014 in line with Fed Governor Michelle Bowman\u2019s forecast of two more cuts before year-end \u2014 those yields could dip even further.(5)(6)<\/p>\n Certificates of Deposit (CDs) can offer a cushion, since their rates are typically locked in for the duration of the term, potentially shielding savers from further declines.<\/p>\n You can shop around for CD rates offered by banks and financial institutions near you through MyBankTracker<\/a> \u2014 helping you find the best option without having to comb through multiple websites.<\/p>\n MyBankTracker does the heavy lifting for you, offering side-by-side comparison of CD rates<\/a>, terms, and perks, as well as personalized recommendations based on your goals<\/a> and risk tolerance.<\/p>\n And, although it may not be a popular prospect, the longer you remain in the workforce, the longer you can go without drawing Social Security or dipping into your savings.<\/p>\n Plus, while you can start claiming Social Security benefits at age 62, if you wait until age 70, you can earn a bigger check each month.<\/p>\n But your income doesn\u2019t always need to come from a paycheck. You can let your money work harder for you by investing in real estate crowdfunding platforms like Arrived<\/a> while earning passive income along the way.<\/p>\n Backed by world-class investors like Jeff Bezos, Arrived helps you buy into shares of prime residential real estate and vacation rentals across the country.<\/p>\n Arrived manages everything for you \u2014 from property taxes to finding reliable tenants \u2014 so you can sit back and relax. And any potential rental income generated by the property is distributed to shareholders<\/a>, helping you set up a source of passive income.<\/p>\n Plus, after the investment hold period ends, any capital appreciation of the property will be passed on to you through capital gains distributions. Arrived\u2019s history speaks for itself \u2014 investors have earned roughly 6% to 10% a year on average<\/a>.<\/p>\n Even better, Arrived is in the process of rolling out a secondary market for the sale of fractional shares, giving you even more flexibility to buy, sell or hold.<\/p>\n You can get started with as little as $100<\/a> to see if Arrived is right for you.<\/p>\n Whatever you choose, instead of waiting for an act of Congress, the best way to deal with the looming Social Security shortfall may be to bolster your finances yourself.<\/p>\n If you\u2019re unsure where to start, consulting with a financial advisor can help you map out your personal shortfall when it comes to retirement savings and guide you through closing the gap.<\/p>\n A Roth IRA might help you fill in the gap between what Social Security provides and the retirement you want. Because contributions grow tax-free and withdrawals in retirement aren\u2019t taxed, they let you keep more of your money working for you \u2014 potentially helping you cover any shortfall without the added tax burden.<\/p>\n If you want to get started right away, RothIRA.org<\/a> provides personalized expert advice for anyone with a portfolio of $100,000 or more.<\/p>\n Here\u2019s how it works: Simply enter your information, and then you will be automatically matched with two or three SEC\/FINRA-registered advisors who suit your needs.<\/p>\n From there, you can schedule initial consultation calls for free<\/a> with no obligation to find the right fit for you.<\/p>\n Join 200,000+ readers and get Moneywise\u2019s best stories and exclusive interviews first \u2014 clear insights curated and delivered weekly. Subscribe now.<\/a><\/strong><\/p>\n We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines<\/a>.<\/p>\n The Committee for a Responsible Federal Budget (1<\/a>), (2<\/a>); CBS (3<\/a>); Reuters (4<\/a>), (5<\/a>); CNBC (6<\/a>)<\/p>\n This article provides information only and should not be construed as advice. It is provided without warranty of any kind.<\/p>\n","protected":false},"excerpt":{"rendered":"Lane V. 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