How to Secure Your Retirement Beyond Social Security Benefits

Social Security has long been a cornerstone of retirement income for millions of Americans, but concerns about its long-term viability have grown. While the program is expected to continue paying benefits, the Social Security Administration projects that after 2035, benefits may be reduced to about 83% of scheduled amounts. This potential shortfall highlights the importance of planning for retirement income beyond Social Security.

Social Security benefits are funded through payroll taxes, with employees and employers each contributing 6.2%, and self-employed individuals paying 12.4%. These contributions fund current retirees’ benefits rather than individual savings accounts. Your future benefits depend on your earnings history and the age at which you begin claiming benefits, with delayed retirement increasing monthly payouts.

Despite its importance, Social Security alone is unlikely to cover all retirement expenses. The average monthly benefit as of 2025 is approximately $1,946, which could decrease to around $1,615 after 2035. This amount is typically insufficient to maintain a comfortable lifestyle, underscoring the need for additional savings and income sources.

Strategies to Strengthen Your Retirement Plan

• Review and set up retirement accounts early, even if you can’t contribute immediately, to prepare for future savings.
• Maximize contributions to employer-sponsored plans such as 401(k)s, especially when employer matching is available, to accelerate growth.
• Open and contribute to Individual Retirement Accounts (IRAs) to benefit from tax advantages and diversify retirement savings.
• Reduce housing expenses by paying down mortgages or relocating to lower-cost areas to free up funds for retirement savings.
• Utilize health savings accounts (HSAs) and flexible spending accounts (FSAs) to manage healthcare costs effectively, preserving retirement funds.

By adopting these strategies, individuals can build a more resilient and fulfilling retirement plan that does not rely solely on Social Security benefits. Proactive financial planning reduces anxiety about the future and enhances overall well-being.

Ultimately, Social Security should be viewed as a foundational element of retirement income, complemented by smart saving, investment, and expense management strategies to ensure financial security regardless of policy changes or economic shifts.