If you’re worried about the future of your Social Security benefits, you’re not alone. Seventy-three percent of adults worry that Social Security will run out of funding in their lifetime.* This concern is shared by both workers expecting to rely on these benefits someday and retirees currently receiving payments.

It’s no wonder they’re concerned. Social Security’s financing issues and a steady stream of headlines such as “Social Security Trust Funds Projected to Be Depleted in 2035” can put us on edge. Unfortunately, they can also lead people to claim their benefits early—which could have significant long-term effects on their financial well-being.

While Social Security is unlikely to disappear, it may undergo changes. Nevertheless, you can take proactive steps now to prepare for potential changes and protect your future retirement income.

First, Is Social Security Really Going Away?

Social Security is one of the most popular and successful federal programs in US history and offers retirees a reliable income stream to help sustain their standard of living.

Therefore, neglecting the program, or allowing it to deteriorate, could provoke voter backlash, which politicians are keen to avoid. Rather than large, sweeping reforms, politicians are more inclined to address it with small, incremental changes necessary to shore up the program. Several proposed changes, if enacted, could bolster Social Security in the long run. But any changes would take time to become apparent and likely wouldn’t be felt for at least a decade.¹

Even in the unlikely event that Congress doesn’t act before funds are depleted, Social Security wouldn’t go bankrupt. Ongoing Federal Insurance Contributions Act (FICA) payroll tax revenue would still fund about 80% of promised benefits indefinitely.¹

Second, The Pitfalls of Panic

Despite this, many individuals file for benefits before full retirement age, resulting in lower payments. A common misconception is that these payments will automatically increase to 100% of the full retirement benefit amount when full retirement is reached.

This is not the case.

Filing early locks in reduced benefits for life. Not only are individual benefits reduced, but spousal benefits are, too. Delaying benefits may result in a higher monthly payout for both individuals and spouses.

How Filing Early Could Affect Your Benefits

To understand how filing early or delaying might affect your benefits, check your Social Security Statement online at www.ssa.gov/myaccount. If you don’t have an account yet, you can easily create one.