In particular, the fund dedicated to retirement benefits may run out by late 2032, according to the latest estimates from the Social Security Administration's chief actuary.
Social Security Needs Shoring Up But Will Not Go “Bankrupt”
The trustees project that the DI trust fund reserves will last through the 75-year, long-range projection window. Because DI costs and income are in close balance, even small changes can significantly alter the DI trust fund's projected reserve depletion date.
Most retirees rely on their Social Security benefits as part of their income in retirement, “So if it was cut in half, their retirement would be negatively impacted,” according to Kristin Petersmarck, a national Social Security advisor (NSSA) and investment advisor representative at New Horizon Retirement Solutions.
Qualification for the $1,400 stimulus check (the third Economic Impact Payment) in 2021 depended on your 2021 Adjusted Gross Income (AGI) and filing status, with full amounts for single filers earning up to $75,000 (phasing out at $80,000) and joint filers up to $150,000 (phasing out at $160,000), plus $1,400 per dependent; you needed a valid Social Security Number and had to claim it as the Recovery Rebate Credit on your 2021 tax return if you missed the payment, with deadlines typically in April 2025.
Yes, Social Security recipients received a Cost-of-Living Adjustment (COLA) for 2025, but the bigger news is that they are getting a larger 2.8% COLA for 2026, announced in October 2025, which began with January 2026 payments, increasing average benefits by about $56 per month. The 2025 COLA was a smaller 2.5% increase, while the 2026 adjustment reflects moderating inflation, leading to higher payments starting in the new year.
The Social Security Administration announced in October that beneficiaries will see a 2.8% increase in their monthly payments, known as the cost-of-living adjustment, or COLA. Individuals receiving Social Security benefits will notice the increase starting in January 2026.
While Social Security is unlikely to disappear, it may undergo changes. Nevertheless, you can take proactive steps now to prepare for potential changes and protect your future retirement income.
The extra $144 added to Social Security usually comes from the Medicare Part B Giveback benefit, offered by some Medicare Advantage (Part C) plans, which pays back some or all your Part B premium, showing up as extra money in your check if it's deducted from your Social Security. To qualify, you need Original Medicare (Parts A & B), pay your own Part B premium, live in a plan's service area, and enroll in a specific Medicare Advantage plan that offers this "rebate," with the amount varying by plan and location.
But even if you never worked and therefore don't have an earnings record, you're not necessarily out of luck. If you're married (or were married) to someone who's entitled to Social Security, you can collect spousal benefits equal to 50% of your husband or wife's benefits at full retirement age.
Bush financed income tax cuts and the Iraq war by plundering money from Social Security.
Under the current law, an individual's wealth or current income level has no impact on their eligibility to receive a Social Security retirement benefit. In other words, even if you have $10 billion in assets, you could qualify for Social Security as long as you meet the requirements.
Roughly 7% to 9% of American households have $500,000 or more in retirement savings, though figures vary slightly by source, with data from late 2025 suggesting around 7.2% and older 2022 data indicating about 9%, showing it's a significant milestone achieved by less than one in ten families, despite higher averages driven by wealthy individuals.
According to the June 2025 Social Security trustees report, the fund reserves that help pay for Social Security benefits will be depleted in 2033. Benefits won't run out, but retirees would then only be able to receive 77% of their full benefits.
To avoid the 22% tax bracket (or any higher bracket), focus on reducing your taxable income through strategies like maxing out 401(k)s and HSAs, deferring bonuses, tax-loss harvesting, smart charitable giving, and strategic asset location, understanding that higher rates only apply to income within that bracket, not your entire income.
The dollar amount increase to checks will vary depending on a person's benefit amount, but the average Social Security Retirement benefit, $2,008.31 in July 2025, will grow by about $56.
What is the maximum Social Security retirement benefit payable?