Keeping Social Security Benefits Sustainable
While some people question the sustainability of Social Security payments, the program is far from collapsing. A sound financial plan can reduce reliance on social benefits.
Social Security has been a hot topic for many years, but lately it appears more people are asking about its future viability as economic uncertainty heightens. The Social Security Fairness Act, which was signed into law in early 2025 and increases payments to millions of Americans who had previously been treated unfairly regarding their Social Security benefits, has led many workers to question whether an adequate level of benefits will still be there when they retire.
Each year, the Social Security Board of Trustees releases a report on the financial status of the Social Security program, providing insights into the program’s health and how funding changes may help ensure sustainability of benefits for years to come.
Let’s look at some key highlights from the 2026 Annual Report to Congress, so we can see what’s happening these days with Social Security. We’ll also discuss how thoughtful financial planning can help you stay grounded, regardless of future reforms and any potential benefit cuts.
What the 2026 Trustees Report says
The Social Security Board of Trustees stated that in 2025, Social Security paid out benefits of $1.60 trillion to 70 million beneficiaries. They also announced that the combined reserves of the Old-Age and Survivors Insurance and Disability Insurance (OASI and DI) Trust Funds was $2.56 trillion in 2025, a decline of $160 billion from the previous year.
As well, it was projected that these combined reserves should be sufficient to cover all scheduled benefits and related administrative expenses until 2034. This projection is the same as in 2025’s report, as is the assumption that approximately 83% of benefits will be payable at that time.
Last year, total income (including interest) for the combined OASI and DI Trust Funds was $1.45 trillion, while total expenditures from these Funds was $1.61 trillion, revealing a significant shortfall. In fact, over the 75-year long-range period, as costs related to sustaining the Social Security program continue to rise, the actuarial deficit is projected to be 4.42% of taxable payroll, compared to a 3.82% projection in the 2025 report.
Is reform on the way?
To help restore long-term sustainability of Social Security benefits, Congress has been asked to consider reforms that could enhance financial stability of the program, such as increasing the payroll tax rate, lowering benefit payments, raising the full retirement age, and reducing cost-of-living adjustments. It remains to be seen what actions the lawmakers will choose to take.
While the trend of a funding deficit may create some cause for concern, it’s important to remember that even if the reserve fund for the combined OASI and DI Trust Funds is depleted by 2034, Social Security benefits will not stop. Instead, as mentioned above, the system is projected to continue paying about 83% of scheduled benefits, based on ongoing payroll tax income. That number could gradually decrease to around 73% by 2098 (the year at which the report’s projections end), based on recent demographic and economic assumptions.
In other words: even with no changes to the system, most recipients can expect 73% or more of their projected benefits to be paid, so the situation likely isn’t as dire as it may appear on the surface.
How we account for uncertainty in your plan
We build our clients’ personalized financial plans with the assumption that some level of Social Security reform is likely, and we’ve already baked that into our planning process.
By default, we model Social Security benefits growing at 2.1% annually, which is lower than the 40-year historical average of 2.8%. This reflects our expectation that cost-of-living adjustment increases may be scaled back in the future.
For clients under 50 (born in 1976 or later), we reduce projected benefits by 25% to reflect the higher likelihood that policy changes will impact younger, higher-income individuals down the road.
And for those with deeper concerns, we can model customized “what if” scenarios that account for tax increases, delayed benefits or partial reductions, to help you understand your options and stay on track.
What you can do now
We believe the most important thing is to remain focused on your overall plan. Social Security is only one part of your retirement income strategy. Your financial plan is designed to provide clarity even amid uncertainty, and it includes built-in stress testing for challenging scenarios like this.
Yes, the system faces funding challenges, but that doesn’t mean Social Security is going away. Even if reforms are implemented, most retirees are currently still expected to receive the majority of their scheduled benefits. By taking a conservative approach in your plan and staying proactive, we can help ensure you're prepared for whatever comes next.
If you’re wondering when’s the right time to claim benefits, or are concerned about how possible changes could affect your long-term outlook or financial circumstances, please reach out to your Corient Wealth Advisor.
ABOUT THE AUTHOR
Neil Teubel
Neil is a Partner and Head of Wealth Planning at Corient. He oversees the entire team of planning experts across the country. He designs and manages the firm’s wealth planning vision and strategy with the goal of ensuring clients receive comprehensive expertise and have a unique experience. Neil believes in the critical importance of having an integrated wealth experience and finds it rewarding to help clients navigate the complexities of wealth to achieve their goals. Prior to Corient, Neil’s experience includes positions with legacy firm Balasa Diverno Foltz (BDF). He holds bachelor’s and master’s degrees in financial planning and is a CERTIFIED FINANCIAL PLANNER® professional. Neil and his wife, Jenny, have three young kids and when he’s not in the office, you can find him golfing, hiking, renovating houses, or running after Sienna, Cole and Ford.
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US 5654730 – July 2026
