Could You Survive a Social Security Cut? Most Say They Couldn't.

Key Points

• The majority of U.S. adults can't afford to miss even half of a monthly Social Security payment.

• A new report shows, however, that benefit cuts could potentially happen within the decade.

• There are a few steps you can take right now to protect your retirement.

• The $23,760 Social Security bonus most retirees completely overlook ›

Social Security benefits are a lifeline for millions of older adults, and a new study shows that the majority of Americans can't get by without them.

According to a 2025 report from the Nationwide Retirement Institute, 61% of U.S. adults currently collecting Social Security benefits admitted that they could not survive financially if they missed even half of a monthly payment. Among those not yet receiving benefits but expecting them, 54% said the same.

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Unfortunately for many retirees, benefit cuts could be a possibility in the next decade. Here's why, plus what you can do to prepare.

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Cuts could be on the table by 2034

One of the biggest problems Social Security is facing is the depletion of its two trust funds -- the Old-Age and Survivors Insurance (OASI) fund and the Disability Insurance (DI) fund.

In recent years, the Social Security Administration (SSA) has been paying out more in benefits than it's receiving in income. The program is funded primarily through payroll taxes from workers, and with baby boomers retiring in droves, the income from taxes hasn't been enough to pay out all the benefits owed to older retirees.

To cover the deficit, the SSA has been pulling money from its trust funds. This is a short-term solution to avoid benefit cuts for right now, but those funds are quickly running out of money. When they're depleted, the SSA will have to rely solely on payroll taxes and other income sources to fund benefits.

According to the SSA Board of Trustees' latest report published earlier this year, the OASI and DI trust funds are expected to run out by 2034. If nothing changes between now and then, the SSA will only be able to pay out approximately 81% of scheduled benefits.

What does this mean for you?

If the trust funds run out in 2034, benefits could potentially be slashed by close to 20%. However, this assumes that lawmakers won't come up with a solution before then.

While nothing has been agreed upon, there are a few proposals on the table. Taxing wealthy workers is one of the most popular and effective solutions, with 81% of voters across both political parties agreeing on this approach, according to a 2022 survey from the University of Maryland.

Currently, only income up to $176,100 per year is subject to Social Security tax. Some lawmakers have proposed taxing wages above $400,000 per year as well, creating extra income for the program and reducing the amount that the SSA would need to pull from the trust funds.

Other lawmakers have suggested raising the full retirement age or reducing benefits for higher earners, both of which would reduce Social Security's expenditures. Again, none of these solutions are set in stone yet. But even if the SSA can avoid benefit cuts, any changes to the program could affect you in other ways.

What you can do to prepare

The future of Social Security may be largely out of your control, but you can still take steps to prepare for any potential cuts.

• Delay claiming benefits: The average retired worker collects around $807 more per month at age 70 than at age 62, according to 2024 data from the Social Security Administration. Delaying filing by even a year or two can boost your benefits by hundreds of dollars per month, taking some of the sting out of any potential cuts down the road.
• Consider a side job or passive income: Even if you're already taking benefits, working while on Social Security can both increase your checks and strengthen your savings. Passive income sources can generate wealth long into retirement, reducing your dependence on benefits.
• Get creative with reducing your expenses: You've likely already exhausted all the ways to reduce your day-to-day expenses. But if you're serious about helping your money last longer, major lifestyle changes like moving to a more tax-friendly state or downsizing to a smaller home can make an enormous difference in your budget.

If none of these options work or you're already well into retirement, your options may be more limited. But staying informed can be a powerful way to protect your finances. The more you know about the state of Social Security and how it affects you, the more you can do to prepare.

The $23,760 Social Security bonus most retirees completely overlook

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