Prefer to watch? Click here to watch and listen on YouTube.

Social Security has been making headlines lately, and for good reasons. According to current estimates, the Social Security Trust Fund could be depleted between 2032 and 2034 if no changes are made, raising serious concerns for both current and future retirees.

In this episode of Money Wisdom, Jake Doser, CFP®, CPWA® and Nicholas J. Colantuono, CFP® explain what’s at risk, what Congress can do to keep the program going, and what actions you can take in the meantime.

Social Security’s Role Today

Social Security is funded primarily through two sources: a trust fund, which has operated for decades, and FICA (Federal Insurance Contributions Act) taxes, which are paid by current workers.

Even with this funding structure, the system’s future isn’t guaranteed. There is a growing disparity between the number of workers contributing to the system and the number of retirees drawing benefits. So, while you shouldn’t assume Social Security will disappear, you also shouldn’t rely on it as your only source of retirement income.

The Possibility of a Depleted Fund

If changes aren’t made in the coming years, benefits could be reduced. That said, we believe it’s unlikely the government would allow this to happen, especially given how many retirees rely on Social Security as their primary source of income.

At the same time, we recognize the Social Security Administration is under significant strain, and the future remains uncertain. As you plan for retirement, it’s important to be aware of both your expenses and income sources, and how those sources might change over time.

Potential Changes to the System

One possible way to help address the Social Security shortfall is to raise the full retirement age again. Delaying eligibility encourages people to work longer and continue contributing to the system, which could help extend the projected 2032–2034 depletion timeline. Another option is to increase FICA taxes and therefore put more money into the system.

No Matter What Happens, Have a Plan

You can’t control the future of Social Security, but you can plan how to adapt. So, the next big question is: when should you start taking benefits? This critical decision depends on several factors, including:

• Who depends on you financially?
• What kind of legacy do you want to leave?
• What are your other sources of income?
• How much have you saved?
• When do you plan to retire?

A financial advisor can help you navigate Social Security as part of your broader income strategy, helping you understand the rules, know your options, and make an informed decision.

Need help making the right Social Security decisions? Get your free Social Security Decisions guide by texting “SOCIAL” to 800-757-0436.