Fear is rising: 59% believe Social Security will collapse before they reach retirement, according to a recent LendingTree DepositAccounts survey. It’s a chilling stat that’s got Americans of all ages, from Gen Z to Boomers, worried about what retirement is really going to look like. With the Social Security Trust Fund projected to run dry by 2035, it’s time to get real about what comes next.
If you’re banking solely on Social Security, the truth is: you might come up short. Let’s walk through why this is happening, what it means for your future, and what you can do to protect yourself and your family. Spoiler alert: there are ways to build a safety net that doesn’t rely on shaky government programs.
59% Believe Social Security Will Collapse
| Topic | Details |
|---|---|
| Public Concern | 59% of Americans fear Social Security will be unavailable upon retirement (Newsweek) |
| Trust Fund Depletion | Expected by 2035, which could result in a 17% benefit reduction (Investopedia) |
| Average Benefit | $1,929.20 monthly in 2025 (Investopedia) |
| Recommended Savings | Experts suggest saving 10–20% of your income annually |
| Diversification | Includes 401(k)s, IRAs, annuities, real estate, side gigs |
| Emergency Fund | At least one year of essential expenses |
| Delayed Benefits | Increases Social Security income by 8% per year delayed until age 70 |
| Life Insurance | Can offer tax-advantaged supplemental retirement income |
It’s okay to be worried. In fact, with 59% of Americans bracing for a Social Security shakeup, you’re not alone. But don’t let fear paralyze you. Let it push you to build a smarter, stronger plan. You have tools, resources, and time on your side.
Think beyond the check. Think about freedom, peace of mind, and your legacy. Get started today—and take your future into your own hands. Even if Social Security gets shaky, your personal plan doesn’t have to be.
Why Are Americans Losing Faith in Social Security?
Social Security was once a sure thing—a backstop for working folks to enjoy a modest retirement after decades of contributing. But today, with the balance between workers and retirees out of whack, the math just doesn’t add up.
- More retirees are drawing benefits
- Fewer workers are contributing to the system
- People are living longer, drawing checks for more years
Combine that with wage stagnation, inflation, and an unpredictable job market, and it’s no surprise that trust is declining. People are right to be cautious. The system needs updates, but reform has been slow and politically gridlocked. Until then, future retirees must brace themselves for changes.
By 2035, unless Congress steps in with reforms, the Trust Fund is projected to deplete, forcing the government to cut benefits by as much as 17%. It’s no wonder people are scared.
A Guide to Building Your Retirement Backup Plan
1. Max Out Your Retirement Accounts
Start with the basics:
- 401(k): Contribute at least enough to get your employer match. For 2025, the limit is $23,000, or $30,500 if you’re 50+.
- IRA: Traditional or Roth IRAs let you stash away $7,000 per year, with a $1,000 catch-up for those 50 and older.
- HSA (Health Savings Account): If you’re eligible, it’s a triple tax-advantaged gem that can double as a health-focused retirement account.
Not only do these accounts grow tax-deferred (or tax-free, in the case of Roth accounts), but they also shield your long-term savings from immediate tax liability. Be proactive, automate your contributions, and review your portfolio annually.
2. Diversify Your Income Streams
Don’t count on one source. Consider:
- Annuities for lifetime income
- Dividend-paying stocks for passive income
- Rental real estate
- Side gigs or part-time work
- Freelance consulting in your area of expertise
You can even consider building online businesses, investing in REITs, or launching low-cost side hustles that generate additional revenue.
Spreading your income sources reduces risk and helps ensure stability in retirement.
3. Build a Big, Cushy Emergency Fund
Life happens. Be ready:
- Aim for 12 months of living expenses
- Park it in a high-yield savings account or money market fund
- Separate it from your main checking account so you’re not tempted to touch it
Don’t underestimate the power of cash. Medical emergencies, home repairs, or job loss can strike at any time. Having a sizable buffer can mean the difference between staying afloat or falling into debt.
4. Delay Social Security If You Can
Waiting pays off:
- Benefits increase by about 8% for every year you delay past full retirement age, up to age 70
- For most folks, this can mean thousands more per year
Consider working longer, part-time if needed, to delay tapping into your benefits. The math works in your favor, especially if you have longevity in your family history.
5. Use Life Insurance Wisely
Permanent life insurance policies like whole or universal life can build cash value over time. You can:
- Borrow against it tax-free
- Use it as a safety valve for emergencies or retirement income
These policies can also serve as estate planning tools, helping you leave a financial legacy or cover end-of-life expenses.
Talk to a licensed advisor first—not every policy is created equal.
Real-Life Example: How Maria Secured Her Retirement
Maria, a 42-year-old single mom in Arizona, started saving in her 30s after realizing Social Security might not cut it. Here’s her setup:
- $400/month to her Roth IRA
- $300/month into a low-cost index fund
- She rents out her converted garage apartment for $850/month
- She picked up a cash value life insurance plan with a $25,000 emergency reserve
- She also runs an Etsy shop selling handmade candles, earning $300/month
Now at 50, Maria is confident she can delay Social Security until age 70—and she’s on track for a comfortable retirement. If she can do it, so can you.
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Future-Proof Your Retirement With These Extra Tips
- Get help from a fiduciary advisor (someone who legally must act in your best interest)
- Use retirement calculators to model different scenarios
- Review your plan annually
- Don’t panic-sell during downturns
- Keep your debt low
- Consolidate old 401(k)s to streamline account management
- Stay educated through podcasts, books, and financial news
- Join online communities for peer learning and accountability
FAQs About 59% Believe Social Security Will Collapse
Q: Is Social Security definitely going away?
A: No, but reductions are likely if Congress doesn’t act. It’s safer to plan as if you’ll get less.
Q: How much do I need to retire without Social Security?
A: Most experts suggest 25x your annual expenses. So if you need $40,000/year, aim for $1 million.
Q: Can life insurance really help with retirement?
A: Yes—some permanent policies let you withdraw or borrow from the cash value tax-free.
Q: What if I’m starting late?
A: It’s never too late. Start small, automate savings, and focus on cutting expenses. Delaying retirement also helps.
Q: Are there apps or tools to make this easier?
A: Yes! Try apps like Personal Capital, Mint, YNAB (You Need A Budget), or Fidelity’s retirement planning tools.
