Is Social Security Going to Run Out in Your Lifetime?
Is Social Security Going to Run Out in Your Lifetime?
The Social Security Board of Trustees recently announced that the program’s trust funds have enough revenue to pay out full benefits until 2035. While this may sound somewhat alarming, suggesting the funds will be completely depleted in just a matter of years is not what’s really happening.1
If the Social Security coffers were to run out, it would imply that no action would be taken to correct the matter between now and 2035. It seems more likely that political pressure would be placed on Washington to fix the problem before we ever get to that point.
Even if the trust fund was depleted, it wouldn’t mean that Social Security payments would come to an abrupt halt. The program would continue taking money out of paychecks and use it to pay the individuals who are currently collecting benefits. So, while concerns about the future of Social Security are certainly valid, the situation is not as dire as some fear.
The Impact of Misinformation
Fearmongering headlines may contribute to several of the persistent myths about the venerable program. A 2023 survey by the Nationwide Retirement Institute revealed that three out of four adults aged 50 and older believe that Social Security will run out in their lifetime. This widespread misconception can influence critical decisions, such as when to start claiming benefits.
According to recent data, age 62 remains the most popular age to start collecting benefits. In 2022, 29% of new beneficiaries opted to claim benefits at the earliest opportunity, while 62% began collecting before reaching full retirement age.2
Not waiting until the full retirement age can result in receiving up to 30% less in benefits. Every year you delay past full retirement age, up to age 70, can potentially increase your benefits by 8%. That’s per year.2
While not everyone can wait that long to start collecting benefits, these statistics suggest that misunderstandings about Social Security may drive many to claim earlier than necessary, potentially causing them to leave money on the table. Even so, only 16% of beneficiaries wait until their full retirement age, and just 10% hold off until age 70 to maximize their payments.3
Social Security’s Enduring Role in Retirement
Despite concerns about its future, Social Security remains a cornerstone of retirement income for most Americans. According to the Employee Benefit Research Institute, 87% of workers expect to rely on Social Security for retirement income, which means it is likely to remain an important part of many retirees’ lives for the foreseeable future.3
Understanding when and how to claim your benefits effectively can play a pivotal role in achieving your retirement goals. So, if you have concerns about the program or are unsure how Social Security benefits will factor into your retirement plan, please don’t hesitate to reach out.
1SSA.gov, 2025
2CNBC.com, May 19, 2024
3EBRI.org, 2025
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