Is Social Security Really Doomed?
- Marc Lowe
- Sep 30
- 3 min read
I can't count how many times I've seen the headline that Social Security is “running out of money”. The Social Security Administration itself says that by 2033, the trust fund that supports the program will be depleted — and that only about 79% of scheduled benefits will be payable after that point.
At first glance, that sounds alarming. But let’s slow down and put this into context.
Why I Don’t Believe Benefits Will Disappear
Do I think Social Security benefits will vanish or even be drastically cut for future generations? Honestly, I don’t see that happening.
Here’s why: there are a lot of other places the federal government would trim spending long before touching Social Security. That’s because Social Security isn’t just another line item in the budget — it’s part of what’s called mandatory spending.
Mandatory vs. Discretionary Spending
Federal spending is divided into two main categories: mandatory and discretionary.
Mandatory spending is automatic. It includes Social Security, Medicare, Medicaid, and some veterans’ benefits — programs that don’t require Congress to vote on them every year. Once you’re eligible, the benefits are owed to you by law.
Discretionary spending is different. This is the portion of the budget Congress and the President must approve annually. About half goes to national defense, while the rest funds agencies and programs like transportation, education, housing, social services, scientific research, and environmental protection.
If cuts need to happen, they’re far more likely to come from the discretionary side of the budget — things lawmakers debate and approve annually — than from the programs tens of millions of Americans rely on every month.
What This Means for Your Retirement Plan
The takeaway: Social Security isn’t disappearing. It may evolve — perhaps through payroll tax adjustments or changes in how benefits are calculated — but it’s highly unlikely to just stop paying retirees.
Still, your retirement plan shouldn’t rely solely on Social Security. It’s one piece of the puzzle, not the whole picture. Work with a financial advisor to build a plan that factors in potential changes while still aiming for the retirement you envision.
About The Author
Marc Lowe is the Founder & President of In The Money Retirement Planning. He is a Certified Financial Planner and member of NAPFA National Association of Personal Financial Advisors, XY Planning Network & Fee-Only Network. He works with retirees and those approaching retirement. He has over a decade of experience helping these folks grow their net worth, organize their finances and build better lives for themselves and their families.
The information presented in this Presentation is the opinion of the author and does not reflect the views of any other person or entity unless specified. The information provided is believed to be reliable and obtained from reliable sources, but no liability is accepted for inaccuracies. The information provided is for informational purposes and should not be construed as advice. Advisory services offered through In The Money Retirement, an investment adviser registered with the state of Connecticut. The information linked to on third-party sites is being provided strictly as a courtesy and convenience. When you link to any of the web sites provided here, you are leaving this website. We make no representation as to the completeness or accuracy of information provided at these websites. When you access these websites, you are leaving our website and assume any and all responsibility and risk for use of the web sites you are visiting.The tax and estate planning information offered by the advisor is general in nature. It is provided for informational purposes only and should not be construed as legal or tax advice. Always consult an attorney or tax professional regarding your specific legal or tax situation.
Comments