If you’ve been reading the headlines, you’ve probably heard that Social Security is “going broke” or “running out of money.” That kind of news can be alarming, especially if you rely on your Social Security check as a key part of your retirement income. But the truth behind those headlines is more complex—and more reassuring—than it may seem.

The 2024 Social Security Trust Fund Report

Each year, by law, the Secretary of the Treasury reports to Congress on the state of the Social Security Trust Fund. The 2024 report is over 300 pages long, but here’s the bottom line:

• At the end of 2023, the Trust Fund held $2.788 trillion.
• By the end of 2024, it had $2.720 trillion—a decrease of about $67 billion.
• That shortfall represents only about 2.5% of the total fund.

In other words, while the Trust Fund did dip slightly, there’s still an enormous amount of money set aside. The system is not running on empty.

What the Headlines Miss

You’ve likely seen predictions that the Trust Fund will “run dry” around 2034. While that projection is based on certain assumptions, here’s what’s important to remember:

• Social Security will not disappear. Even if the Trust Fund were depleted, benefits would still be paid from ongoing payroll taxes.
• Checks won’t stop. The concern is about possible reductions in benefits—not elimination.
• There’s time to fix this. With nearly $3 trillion still in the fund, there’s a runway for Congress to make changes.

What This Means for You

Social Security is the foundation of retirement income for millions of Americans. Whether you have a large nest egg or modest savings, your Social Security benefits are the “base income” in your plan. That’s why decisions about when and how to file are so important.

Unfortunately, many people make choices based on fear, misinformation, or even casual advice from friends or family. Filing too early, for example, could permanently reduce your check and impact your spouse’s benefits.

The good news? With the right information—and a plan that takes your entire retirement picture into account—you can make confident decisions that serve you for the rest of your life.

Our Take

We believe Congress will act to strengthen Social Security. It may involve changes like gradually raising the payroll tax cap or adjusting the retirement age. But the idea that “Social Security will vanish” is not realistic. There’s simply too much at stake for current and future retirees.

In the meantime, your best step is to focus on your own filing strategy. Talk with a financial professional who understands Social Security and can help you integrate it with your other income sources—IRAs, pensions, investments, and more.

At the end of the day, retirement should be about enjoying life, not worrying about whether your Social Security check will show up. With the facts in hand, you can have peace of mind and make decisions that support the retirement you’ve worked so hard for.