According to the Social Security Administration (SSA), more than 67 million Americans received Social Security benefits in 2023. Many Americans depend on these benefits to stay financially independent. But the program is running out of money.
The most recent SSA Trustees report estimates the program will be insolvent by 2033. As of this writing, the United States Congress has not passed legislation to help ensure the program stays funded in the long term. However, Daniel Masuda Lehrman, CFP, founder and lead financial planner for Masuda Lehrman Wealth , says, “.
..there is no need to panic quite yet.
Once the trust fund is depleted, ongoing taxes should still cover about 79% of benefits.” Will that be enough to help those who don’t have much money saved for retirement? Pensions Are in the Past Dan Doonan, Executive Director of the National Institute on Retirement Security , testified before the Senate Health, Education, Labor, and Pensions Committee in February. In his remarks, he said Generation X is the first generation in decades to retire largely without the assistance of company pensions to supplement their Social Security income.
While many Gen Xers have 401(k) or IRA accounts, Doonan said those were never meant to replace pensions entirely. “The data clearly suggest that we need to rethink our nation’s retirement infrastructure because the current system is leaving the middle class behind,” said Doonan. “Finding solutions to ensure Americans have access to.
