Worried About Social Security in 2025? A Pro Financial Planner Shares Key Things To Know

Many Americans are feeling uneasy about the future of Social Security. While the average monthly Social Security benefit is now over $2,000, some experts also predict that the Social Security trust fund will deplete its reserves within the decade.

In an episode of the “Future Rich” podcast, Barbara Ginty, CFP, reassured listeners that while Social Security isn’t going away, it does face pressures that require thoughtful planning.

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Here are some things you should know, as well as seven things to do if you’re worried about Social Security.

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Check Your Earnings Record

Ginty said to qualify for Social Security, workers need at least 40 work credits, which amounts to roughly 10 years of employment.

Without meeting this minimum, they are not eligible for retirement benefits. Reviewing one’s earnings record on the Social Security website regularly helps to ensure that reported income is accurate and that no credits are missing.

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Know How Benefits Are Calculated

Social Security calculates retirement benefits based on a person’s highest 35 years of earnings.

Years with no reported income, such as time spent in school, caregiving or unemployment, can reduce the monthly benefit unless replaced by higher-earning years later.

“Those zero years will fall off,” Ginty said. “They’re going to take the highest of your 35 years of earnings in which you paid into Social Security.”

Understand Who Can Claim

Social Security offers more than just retirement benefits. Spouses, former spouses, widows, widowers, surviving ex-spouses, minor children of deceased workers and people with disabilities may all be eligible.

“There’s a few different ways you can collect on Social Security, and that’s where this can get a bit confusing,” Ginty said.

Understanding these different claiming options is key to maximizing lifetime benefits.

“I think it is a lot more important as a household to consider what the benefits look like and how you’re going to collect. Versus a single individual, where you have only one benefit available, as a household, there’s two benefits,” Ginty said.

Report Your Income

Workers who are paid in cash or “off the books” and do not report their income will not accumulate Social Security credits.

“If you don’t plan accordingly, you could miss out on, or you most likely will miss out on, your Social Security,” Ginty said. “You could also miss out on Medicare, so you want to make sure you are on the books.”

Ginty said that failing to contribute to the system could result in being ineligible for future benefits, including retirement, disability and survivor payments.

Learn How It’s Funded

Social Security is a “pay-as-you-go” program funded through payroll taxes. This means today’s benefits are largely funded through payroll taxes collected from today’s workers.

Employees contribute 6.2% of their wages toward Social Security and 1.45% toward Medicare, with employers matching both amounts.

“Now, if you’re self-employed, you are responsible for the full 15.3%,” Ginty said. “You need to be covering both sides of that, meaning … if you are self-employed, you’re the employee and you’re the employer. So you have to do both sides of it.”

Have a Collection Strategy

Claiming Social Security as soon as benefits become available may not always be the best decision.

Ginty said having a collection strategy, particularly for married couples, helps maximize total benefits over two lifetimes and secure greater financial stability in retirement.

“I do believe it is important to consider a strategy with Social Security, not to just collect as soon as you’re eligible, but to think about why you’re collecting and how you’re collecting, and how it will affect yourself and or your household,” she explained.

Don’t Count on Social Security Alone

Social Security was never intended to serve as a retiree’s sole source of income.

“It was intended to be a supplement for retirees,” Ginty said. “It … has never been meant to be your sole source of income. Sadly, for some retirees today, it is the single largest source of income.”

Ginty said that individuals aim to save at least 15% of their income for retirement to supplement their Social Security benefits, especially given rising life expectancies and the program’s future uncertainty.

“I like to see your own savings being greater than what is being mandated by the government,” Ginty said. “Remember, it is meant to be a supplement to your retirement. You don’t want it to be your single largest source of income in retirement. That’s just not as comfortable.”

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This article originally appeared on GOBankingRates.com: Worried About Social Security in 2025? A Pro Financial Planner Shares Key Things To Know