Will Social Security be there when I need it?

Tyler Kert
Tamarack Wealth Management

Social Security has been a major part of retirement planning in the United States for generations, yet many people still aren’t sure how it works or what role it should play in their financial future. Some people see it as a steady paycheck they can count on for life. Others worry it may not even exist by the time they retire. Wherever you fall on that spectrum, one thing is important to understand: Social Security was never intended to be your entire retirement plan. If social security is your sole plan for retirement income, you may end up with social insecurity. It works better as a part of a larger financial picture. 

The Social Security system was created during the Great Depression under President Franklin D. Roosevelt as part of the New Deal. The goal was to provide a basic financial safety net for retirees, disabled individuals, and surviving family members. Unlike a personal retirement account, where you can invest your money however you like, Social Security works more like a transfer system. Workers pay payroll taxes, and those taxes are used to pay benefits to today’s retirees.

When Social Security was enacted in 1935, the average life expectancy at birth was around 60-64 years. Many people did not live long in retirement, so benefits were generally paid out for a relatively short period of time. Fast forward to today, average life expectancy has risen to a record high of 79 as of early 2026. Many retirees collect Social Security benefits for twenty or even thirty years. That’s obviously a good thing in many ways but it also creates financial pressure on a system that was designed for a different era. 

Another issue is the growing disparity between benefits being paid out and contributions being paid in. Years ago, there were significantly more workers paying into the system for every retiree receiving benefits. But now, birth rates have declined while the number of retirees continues to grow. That means fewer workers are supporting more beneficiaries. Naturally, that raises concerns about how sustainable the system will be in the long term.

Needless to say, there’s a lot of uncertainty surrounding Social Security. Some people think it will completely disappear before they retire. Others believe that the government will simply keep funding it forever no matter what happens. The reality is probably somewhere in the middle. The Social Security website itself says, “benefits are now expected to be payable in full on a timely basis until 2037, when the trust fund reserves are projected to become exhausted. At the point where the reserves are used up, continuing taxes are expected to be enough to pay 76 percent of scheduled benefits.” That raises the question, will benefits really be cut 24% in a decade? It’s hard to say. But changes are going to have to occur. Those changes will likely involve some combination of raising the retirement age, increasing payroll taxes, adjusting benefit calculations, or reducing benefits for higher-income earners. Bottom line: it is in your best interest to avoid counting on Social Security as a guarantee. 

Another factor that plays into this conversation is deciding when to start taking benefits. While you can begin collecting Social Security as early as age 62, doing so permanently reduces your monthly benefit amount and won’t necessarily exempt you from future cuts. If you are willing to wait longer, you can increase your monthly payments until the maximum benefit is reached at age 70. For married couples, these decisions become even more important because the higher earning spouse’s benefit often impacts survivor benefits later on. The timing of when you decide to take Social Security can make a surprisingly large difference over the course of retirement. Don’t guess when it comes to deciding when to take social security. Take the time to do your research and seek advice so you can make a wise decision. 

Social Security will likely remain part of retirement for millions of Americans, but it may look different depending on how far away your retirement is. Make sure you’re taking these future changes into account in your planning. Keep doing the little things – building savings, reducing debt, creating multiple sources of retirement income – and you can feel far more confident about the future, regardless of what changes may come to Social Security down the road.

This material is for informational purposes only and does not constitute financial, investment, or tax advice. Please consult your tax advisor or financial planner to discuss your specific circumstances before making any decisions. Securities offered through Cetera Wealth Services LLC, Member FINRA/SIPC. Advisory services offered through Cetera Investment Advisers LLC, a registered investment adviser. Cetera is under separate ownership from any other named entity.

Tyler Kert, a financial advisor and CPA, provides financial planning and tax consulting services at Tamarack Wealth Management in Cashmere, WA. 209 Woodring Street, Cashmere, WA 98815. (509) 300-1040.