Social Security's retirement trust fund is projected to run out in 2032, according to the Trustees Report. But the program won't disappear. Payroll taxes would still cover about 78% of scheduled benefits, and that share could fall to 62% by 2100 as fewer workers support more retirees.
Many younger workers assume Social Security will be gone entirely, so they ignore it in their plans. The numbers suggest a middle path: today's average benefit of about $2,000 per month would become roughly $1,560 if the trust fund ran dry tomorrow. Knowing benefits are reduced, not eliminated, helps you plan retirement savings realistically instead of under- or over-counting them.
✦ Plan for less Social Security, not none.