Worry about Social Security is growing, especially among Americans nearing retirement. A recent study from the National Institute for Retirement Security found that more than half of non-retired Americans are unsure they’ll receive the same benefits as today’s retirees.
Is this concern valid? Unfortunately, yes. The Social Security trust fund is projected to become insolvent by 2033. If no action is taken, benefits may be reduced by about 17% as early as 2035. That would mean the average retiree could lose around $340 per month, more than $4,000 annually.
Let’s be clear: Social Security is not going bankrupt. Benefits will continue to be paid, primarily through current payroll taxes. However, if lawmakers don’t act, future beneficiaries could receive only about 83% of what they’ve been promised.
How Much More Should You Save?
To prepare for the possibility of reduced benefits, financial experts estimate that retirees may need to accumulate an additional $100,980 to make up for the shortfall. This assumes:
- Retirement at age 67
- A 4% annual withdrawal rate
- 5% annual investment returns (not adjusted for inflation)
How much you need to save monthly depends on your current age:
Estimated Additional Monthly Savings to Offset a 17% Cut in Benefits
| Current Age | Years to Retirement | Monthly Savings Needed | Annual Savings |
| 55 | 12 | $513 | $6,158 |
| 45 | 22 | $211 | $2,528 |
| 35 | 32 | $107 | $1,282 |
| 25 | 42 | $59 | $708 |
What You Can Do Now
Here are some smart strategies to close the gap:
- Max out retirement contributions—including catch-up contributions if you’re over 50
- Take full advantage of employer matches
- Consolidate accounts to simplify management and reduce fees
- Diversify your investments to manage risk and growth potential
Despite political divisions, Americans are remarkably united on this issue: over 85% of people across demographics want Congress to act now to fix Social Security’s funding shortfall, not wait another decade.
Partner with a Financial Advisor Who Shares Your Values
Preparing for changes to Social Security benefits requires more than just saving—it requires thoughtful planning that respects your financial goals and personal principles. A financial advisor experienced in halal investing can help you design a retirement strategy that aligns with your values.
Don’t leave your retirement to chance. Connect with a trusted advisor today to build a tailored plan that prepares you for whatever lies ahead—with confidence and peace of mind.
