I'm Not Wasting Time Worrying About Social Security Cuts. Here's What I'm Doing Instead

Key Points

• Social Security is facing the possibility of sweeping cuts within the next decade.

• There's a good chance lawmakers will manage to avoid cuts, but that's not guaranteed.

• Rather than spend time actively worrying about benefit cuts, I'm channeling that energy elsewhere.

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

If you've been keeping up with Social Security news, you may be worried about the program's future. And in that case, you're probably in good company.

The most recent update from the Social Security Trustees wasn't great. We recently learned that the Old-Age and Survivors Insurance (OASI) trust fund is expected to run dry in 2033. At that point, only 77% of scheduled Social Security benefits are expected to be payable.

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If Social Security combines its OASI and Disability Insurance trust funds, that would allow the program to keep up with scheduled benefits through 2034. At that point, only 81% of benefits are expected to be payable.

The idea of benefit cuts can be scary. But I refuse to worry about them for a couple of reasons.

First, this isn't the first time Social Security has faced the possibility of cuts. But lawmakers have always managed to avoid them in the past. Chances are, they'll be able to come up with a solution this time around, too.

Even if that doesn't happen, I don't think sitting around worrying about Social Security cuts is a good use of my time. I can't do anything personally to prevent a broad reduction in benefits, and worrying about something outside of my control isn't productive. Instead, I'm taking these steps to make Social Security cuts less of a concern for me.

1. Building my savings

Though I can't control what happens to Social Security, I can control what I do with my money. And right now, I'm taking a lot of my extra money and allocating it to retirement savings.

The way I see it, the more money I have socked away, the less essential an income stream Social Security becomes for me. And I'm not particularly dependent on Social Security to cover expenses, then benefit cuts may not be a problem.

2. Assessing my investment strategy

The money I'm working hard to save for retirement isn't money I'm keeping in a pile of cash. That may be the "safest" thing to do with it, but I need that money to outpace inflation, so sticking to cash won't work. Instead, I've built a portfolio that consists of a wide range of assets -- growth stocks, dividend stocks, real estate investment trusts, and ETFs.

But my portfolio isn't something I can set and forget. I frequently check up on my investments, rebalancing as needed. I'm also continuously reassessing my investment strategy to make sure it's working for me.

3. Reading up on Social Security filing strategies

Older Americans get choices when it comes to claiming Social Security. The earliest age to file for benefits is 62, but people born in 1960 or later don't get their full benefits without a reduction until age 67. It's also possible to delay Social Security past age 67 for boosted benefits.

It's important to read up on different Social Security filing strategies to make a sound claiming decision, and that's one thing I've taken the time to do. Of course, it's too soon for me to lock in a filing age. But I feel good knowing I'm educated about how the program works.

It's natural to be worried about Social Security cuts. But if you're still working, rather than expend energy stressing about something that's out of your hands, take control of your financial situation. Work on boosting your retirement savings, investing wisely, and expanding your Social Security knowledge so that if broad cuts do arrive, you'll have a game plan.

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