Mar 10, 2026
Headlines about Social Security running out of money are scary. The idea that America’s social safety net could suddenly be pulled out from under us keeps many people up at night.
But what does it mean for Social Security to “run out”? When could that happen? And should it affect your retirement planning?
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The latest projections from the Congressional Budget Office show that the Old-Age and Survivors Insurance (OASI) Trust Fund, which is responsible for retiree and survivor benefits, would run out of money in 2032 if no action is taken. At that time, the program would have “insufficient funds to pay, on a timely basis, the full amounts that OASI beneficiaries are entitled to under current law,” the CBO report says (1).
This doesn’t mean that the trust funds are empty and would completely stop paying benefits. It means the incoming tax revenue would only be enough to pay a percentage of scheduled benefits (2).
Social Security is funded by two separate trust funds; retirement and survivor benefits are paid out by the OASI Trust Fund, and disability benefits are paid out by the Disability Insurance Trust Fund. The combined trust funds would run out of money in 2033, according to the CBO (1).
Last year’s Social Security Board of Trustees report estimated that the combined trust funds would run out of money in 2034, suggesting the situation is worsening. At that time, it was estimated that 81% of scheduled combined benefits would be payable once the funds became insolvent.
It’s up to Congress to authorize changes to the program in the event of a funding shortfall. This could involve raising taxes, cutting benefits or both.
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The stakes are high: more than 70 million Americans receive Social Security benefits as of January this year (3).
Related: 4 money moves that could change your retirement
By the end of 2024, nearly 9 in 10 Americans aged 65 and over collected Social Security. Benefits payments accounted for at least half of the income of nearly 24 million older adults as of June 2025. That’s more than 40% of Social Security recipients 65 and over (4).
Coping with Social Security uncertainty
For those who aren’t yet retired, focusing on maximizing your pre-retirement earnings, and boosting your retirement savings, makes sense amid Social Security uncertainty.
Your Social Security benefit is typically calculated based on your 35 highest-earning years (5). So, increasing your income as you close in on retirement could let you replace some of your lower-earning years, thereby increasing your benefit.
Your benefit will also increase if you wait to start collecting Social Security. Although you can start collecting at age 62, this will reduce your monthly payments compared to if you had waited until your full retirement age. Your benefit will increase 8% for every year that you delay starting Social Security, from your full retirement age until age 70 (6).
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The average monthly benefit for retired workers as of January 2026 was $2,071 (7). But the maximum monthly benefit for someone retiring at age 70 in 2026 is $5,181, meaning many Americans are far from achieving the maximum benefit (8).
Some analysts suggest a "bridge" strategy for those who aren’t working between their full retirement age and age 70. During this time, you would draw from your retirement savings instead of taking Social Security, to maximize your monthly benefit later. This strategy can make sense for many people, especially as people these days are living longer and claiming Social Security for longer (9).
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Strategize as a couple
For married couples, maximizing your benefits can also mean having to calculate whether spousal benefits will be more than the lower-earning spouse’s retirement benefits. You can collect Social Security based on your partner’s work history rather than your own, even if you didn’t work. These spousal benefits are useful for many women who are retired today but spent many years out of the workforce as caregivers — or never worked outside the home at all.
According to AARP, you can’t collect spousal benefits if your own retirement benefit would be larger. For those who are eligible for both types of benefit, Social Security will pay the higher amount.
Another important thing about spousal benefits: If you claim them at 62, you’re only eligible for 32.5% of your partner’s full-retirement age benefit amount. If you wait until you reach retirement age, you’ll get 50%. AARP notes that for some couples with a big income disparity, it can make sense for the lower-earning spouse to take benefits earlier and the higher-earning spouse to delay. Then the lower-earning spouse can switch to spousal benefits once the higher earner starts claiming (10).
Plan — don’t panic
It can make sense to consult a financial professional about how to maximize your Social Security benefits, and how they will fit into your overall retirement plan. Despite headlines about Social Security shortfalls, stay the course on your retirement savings plannings, and make sure you look into how you can maximize your future benefit payments.
Article Sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Congressional Budget Office (1); Congressional Research Service (2); Social Security Board of Trustees (3); AARP (4, 10); SSA (5, 6, 7, 8); Bipartisan Policy Center (9)
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Rebecca Payne has more than a decade of experience editing and producing both local and national daily newspapers. She's worked on the Toronto Star, the Globe and Mail, Metro, Canada's National Observer, the Virginian-Pilot and Daily Press.
