One of the biggest rumors about Social Security today is that the program is on the verge of going bankrupt. And it's a rumor that may be causing retirees and working Americans alike undue stress.
The reality is that right now, Social Security's worst-case scenario involves the program cutting benefits. That's not a great thing, of course, but it's far less scary than the idea of Social Security not paying benefits at all.
Image source: Getty Images.
It's important to know what the timeline for Social Security cuts looks like at this stage of the game, especially since 2026 brings us one step closer to them. Here's the latest.
When Social Security cuts might happen
The good news is that Social Security cuts are not a year or two away. The bad news is that they're not super far away, either.
According to the Social Security Trustees' most recent report, the program's Old-Age and Survivors Insurance (OASI) Trust Fund will be able to pay benefits completely through 2033. From there, however, there may only be sufficient funds to pay 77% of benefits.
If lawmakers vote to combine Social Security's OASI Trust Fund with its Disability Insurance Trust Fund, the program should be able to pay 100% of benefits through 2034. Beyond that point, there may only be enough money to continue paying 81% of scheduled benefits.
Of course, these dates are subject to change. When the Social Security Trustees release their 2026 report, we may learn that these dates have shifted for the slightly better or worse. But this should give you a rough sense of when benefit cuts might happen.
How to prepare for Social Security cuts
Social Security cuts aren't a given, since lawmakers do have potential solutions they can implement to prevent them. But many of those solutions have their own drawbacks, so it's important to brace for a scenario where you don't get your Social Security checks in full.
If you're still working, your best strategy is to boost contributions to an IRA, 401(k), or your retirement account of choice. The more savings you're able to amass, the less reliant on Social Security you're apt to be.
If you're already retired, take a look at your current lifestyle. Are there any expenses you can cut? You may be able to get rid of a car if you live in a walkable city and rely on the occasional rideshare to get to medical appointments or do big shopping trips, thereby saving yourself hundreds of dollars a month in vehicle ownership costs.
Another option? Go back to work in some capacity. Thanks to the gig economy, working during retirement can be a pretty flexible thing. And you may even find a role that you enjoy.
It's important to prepare for Social Security cuts because they are a strong possibility. And if the program's Trustees are correct, they may be coming sooner than anyone wants.
