It's no secret that Social Security has been struggling financially for years. It's long been a hot-button topic in Washington, and more retirees are starting to worry that the program is running out of money.

While Social Security isn't going away entirely, benefit cuts could be on the table within the next decade or so. Nothing is set in stone just yet, as lawmakers could still come up with a solution. But right now is the time to start preparing, just in case.

When will Social Security cuts happen?

To be clear, Social Security is not going bankrupt. But it is facing a cash shortfall that will impact benefit payments if left unchecked.

The program relies primarily on payroll taxes. Current workers pay into the program through taxes, while that money is then paid out to today's retirees. In recent years, though, the income from taxes hasn't been enough to fully fund benefits, resulting in a deficit.

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To bridge the gap and continue paying out benefits in full, the Social Security Administration (SSA) has been dipping into its trust funds. However, according to the SSA Board of Trustees' latest estimates, both trust funds are projected to run out by 2034.

When the trust funds are depleted, the SSA will need to rely solely on taxes or other sources of income to pay out benefits. If nothing changes between now and 2034, the program will only have enough income to cover around 80% of future benefits, according to the SSA.

In other words, unless Congress finds a solution in the next decade, Social Security benefits could be cut by roughly 20% by 2034. Fortunately, there are two steps you can take now to start preparing. 

1. Reduce your dependence on Social Security

Perhaps the safest way to shield yourself against potential benefit cuts is to rely more on your savings or other income sources rather than Social Security. Of course, this is easier said than done, but saving even a little more now can add up more than you might think.

For example, say you're able to boost your savings by just $100 per month. If you're earning a modest 7% average annual return on your investments, that would add up to just over $30,000 after 15 years.

The average retiree collects around $1,800 per month from Social Security. An extra $30,000 in savings, then, would amount to more than a year's worth of benefits. If benefit cuts are looming, that money could go a long way.

Also, saving more isn't the only way to reduce your dependence on Social Security. You could try to find a source of passive income (such as dividend-paying stocks, for example), reduce your overall expenses in retirement, or even consider an annuity.

2. Find ways to increase your benefit amount

Another way to protect yourself is to increase your Social Security payments. You'll still face benefit cuts if the program comes to that point, but when you're starting with bigger checks, these reductions may not sting quite as much.

There are three key ways to increase your benefits: work longer, increase your income, or delay claiming benefits.

  • Work longer: Your benefit amount is based on an average of your wages over the 35 highest-earning years of your career. To receive as much as possible, you'll need to work at least 35 full years before you begin claiming.
  • Increase your income: Again, because your benefit amount is based on your highest-earning years, boosting your income will increase your payments. There's a limit to how much you can earn, and in 2023, that wage cap is $160,200 per year. The more you earn up to that limit, the higher your payments will be. Beyond that figure, though, your income won't affect your benefit amount.
  • Delay benefits: You can file for Social Security at age 62 or anytime thereafter, but the longer you wait (up to age 70), the more you'll receive. Claiming at 62 will reduce your benefits permanently by up to 30%, while waiting until 70 will earn you your full benefit amount plus at least 24% extra -- which could amount to hundreds or even thousands of dollars more per month.

There's no guarantee that benefit cuts are looming. It will depend on whether lawmakers are able to come to an agreement before the trust funds are depleted. But by taking action now when you still have a decade or so left to prepare, you can ensure you're doing everything possible to protect your retirement.