By Eric Hutter
Financial Columnist
Will I be able to count on Social Security being there for me?
This is a common and important concern, especially among pre-retirees. Many people worry that social security might “run out of money” but the reality is more nuanced.
How I explain the solvency + long-term stability of social security to my clients:
- Social Security Is Not Going Bankrupt Reality Check: Social Security is funded by payroll taxes (FICA), which means as long as people are working, money will continue flowing into the system.
According to current projections from the Social Security Trustees (as of 2024 reports), the trust fund reserves are projected to be depleted around 2033-2034 – but that doesn’t mean benefits stop.
Even if no changes are made, about 77-80% of benefits could still be paid through ongoing payroll tax revenues alone.
Key Point for Pre-Retirees: Social Security isn’t going away – it may be adjusted, but benefits will still be there.
- There Are Solutions – and Lawmakers Know it. Congress has many policy levers to strengthen Social Security’s long-term solvency:
- Gradually raising the full retirement age
- Increase or removing the cap on taxable income (currently only wages up to $168,600 are taxed)
- Modestly increasing the payroll tax rate by a small amount
- Adjusting benefits for higher-income earners
These changes don’t need to be drastic – and the sooner they’re made, the smaller the impact will be on individuals.
Key Point for Peace of Mind: Social Security has been adjusted before – and it can be strengthened again.
- It’s Still a Critical Piece of Retirement Income. For most Americans, Social Security represents a reliable, inflation adjusted, lifetime income stream – something few other sources can guarantee.
It’s especially valuable for those:
- Who live a long time (longevity risk protection)
- Who have limited other savings
- Who want to preserve other assets (like investments) longer
Key Point for Retirees: Social Security provides guaranteed income no matter how long you live or what the markets do – making it a foundational part of retirement planning.
When Should You Take Social Security?
For some people taking Social Security as early as possible – at age 62 is a financial necessity – but there are advantages to waiting until benefits reach max at age 70.
According to AARP Bulletin (May-June 2025) – here’s the age breakdown of people who claimed retirement benefits in 2023:
- Age 62: 27%
- Age 67: 5%
- Age 70+: 11%
- Ages 63-66: 53%
- Ages 68-69: 5%
In Conclusion: Social Security is not going broke.
While adjustments may be needed, benefits will still be there. The program is funded by current workers, and as long as people are working, the system continues.
For pre-retirees, it’s smart to factor in Social Security as part of your retirement plan, but also be proactive about saving and preparing for potential changes down the road.
Eric Hutter, a native Floridian, is a member of Syndicated Columnists, a national organization committed to a fully transparent approach to money management. Syndicated Columnists is the sole provider of this material, both written and conceptual, for this column. All rights reserved.
Osprey Retirement Solutions 705 SW Wisper Bay Drive, Palm City, FL 34990. 561-762-7560. Eric Hutter www.ospreyretirement.com
