The Social Security Board of Trustees recently announced that the trust fund is projected to pay full benefits through2035. After that, many headlines suggest the system will be “depleted” — but that language is misleading.
💡 What Happens in 2035?
If no changes are made and the trust fund runs out,Social Security wouldn’t disappear. Payroll taxes would still be collected, which could fund about80% of scheduled benefits. That’s a significant drop — but not a shutdown.
It’s also unlikely Congress would allow such a major cut without acting. As we approach that deadline,political pressure to shore up the system is expected to increase.
🚫Don’t Let Headlines Influence Your Strategy
Unfortunately, the gloomy tone in the media contributes to persistent myths. A 2023 survey found that3 in 4 adults aged 50+ believe Social Security will run out in their lifetime.¹This fear may lead people to claim benefits earlier than is financially optimal.
The most popular age to claim is 62— but doing so can lead to a30% permanent reductionin benefits.
Only16% wait until full retirement age, and just10% delay until age 70, even though waiting can increase benefits by8% per year.²
Of course, not everyone can afford to wait — and in some cases, claiming early makes sense. Butmany people decide without fully understanding the trade-offs.
🔍Why This Still Matters
Despite savings, investments, and pensions,Social Security remains a cornerstone of retirement incomefor most Americans. A recent study found that87% of workers expect to rely on Social Security in retirement³— and we see that echoed in many of our clients’ financial plans.
That’s whySocial Security planning continues to be a key part of our retirement strategies. If you have questions about when to claim or how it fits into your broader plan, we’re here to help.
Sources:
SSA.gov, 2025
CNBC.com, May 19, 2024
EBRI.org, 2025