The Social Security system was one of the “top-ranking worries” of Americans as of April 2025, according to a Gallup survey.
Approximately 52% of those surveyed expressed concerns about the system, representing a nine-percentage-point year-over-year (YoY) increase. Gallup noted that this was the highest YoY increase over the past 15 years.
Similarly, about 59% of non-retired Americans fear that the Social Security system won’t be available when they retire, according to a survey by LendingTree. The fear was especially palpable among Gen X, with 70% of them expressing this concern.
This fear was already evident in the fact that there was a more than 15% YoY increase in benefits claims in March 2025 (a period when the number of claims usually decreases), according to USA Today. Though other reasons like a new wave of baby boomers entering retirement and the Social Security Fairness Act increasing benefits for 3 million people also played a huge role, the uncertainty about Social Security cannot be ignored as a causal factor.
However you slice it, the main point is clear: people are worried. In this piece I’ll break down why that is. I’ll also give you actionable steps you can take to set yourself up for success in this challenging environment.
What is causing uncertainty?
There are multiple reasons for this uncertainty, some more fundamental and others more reflective of current economic conditions.
The most fundamental cause is the now-familiar reality that the Social Security reserves are fast declining.
The Old-Age and Survivors Insurance (OASI) Trust Fund can only pay 100% of benefits until late 2032, according to the 2026 report by the Social Security and Medicare Boards of Trustees. After that, it can only meet 78% of scheduled benefits.
If we add the OASI Trust Fund and the Disability Insurance (DI) Trust Fund, the Social Security Administration (SSA) can only pay 100% of benefits until 2034. Beyond that, it can only meet 83% of scheduled benefits.
While this problem has been anticipated for more than a decade, the government has not found any politically palatable solution. A cut in benefits is undesirable, but so is an increase in taxes.
With about 69 million Americans receiving Social Security benefits every month in 2025 (about 20% of the population), according to the SSA, it makes sense that this upcoming shortfall is causing a wave of uncertainty.
This fundamental problem has also been exacerbated by some of the Trump administration’s actions.
First, efforts to cut down the cost of government through the Department of Government Efficiency (DOGE) led to office closures, workforce reduction, and expense cutbacks at the SSA.
Second, Trump’s tariff policies can result in rising consumer prices. Given that people over 65 depend on Social Security benefits for 31% of their income, according to the SSA, the combination of rising prices and lower benefits could be financially challenging.
This is especially so for the 12% of men and 15% of women who depend on Social Security for 90% or more of their income.
What can you do amidst growing uncertainty?
Many economic and financial analysts are confident that the federal government will find a solution to the financial problem facing the SSA.
They believe that those who have spent their working years contributing to the Social Security fund will not be left hanging when it is time to collect.
Of course, what this solution will look like is uncertain: higher taxes, expansion of the tax base, or another extension of the retirement age? Also, if the major issue (faster growth in people above 65 than those between 18 and 64) persists, it remains to be seen if any government’s action will provide a lasting solution.
What then can you do?
Some possibilities include:
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Taking the benefits early: This is a solution that has been proposed or embraced by those who are skeptical about the government’s ability to find a solution to the current financial situation.
Given that benefits are only scheduled to decline by about 17–22%, sacrificing 30% now to avoid sacrificing 17–22% later may or may not make financial sense.
This is why it’s important to consider not only the potential fall in Social Security benefits but also chronic health conditions you may have.
This may end up being a painful choice if the government ends up finding a solution. It will mean you have sacrificed up to 30% of your monthly income for nothing.
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Stick to claiming later but prepare for the possible shortfall: Another alternative is to collect the benefits later (at full retirement age or further down) but prepare for a possible shortfall by investing more.
Possible solutions include maxing out employer-sponsored plans, opening an individual retirement account (IRA), purchasing an annuity, and buying long-term care (LTC) insurance and Medigap or Medicare Advantage coverage.
But where will the money for these come from?
If you are not retired, you can reduce your expenses or take some part-time work on the weekends. And if you are retired already, you can consider going back to work (full-time or part-time) for a few more years.
However, if tariffs cause the cost of living to rise further, this strategy might become easier said than done.
In the end, what is appropriate for you to do depends on your current financial situation, time horizon, and financial goals.
Thus, your financial advisor is in the best position to give personalized advice. Instead of panicking about the uncertainty surrounding Social Security, have a sit-down with your financial advisor and create a solid strategy that will secure your financial future.
Careful planning with a trusted professional is a time-tested antidote to panic and fear.
Editor’s note: Marguerita wrote this piece in mid-2025. The trust fund figures above are updated to the Social Security Trustees’ 2026 report.
