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Social Security payments can help you fund part of your retirement -- but don't bank on it as your only source of income.
The Social Security trust fund is expected to dry up by 2034, according to the Social Security Administration. That's one year sooner than initially forecast. While the fund won't vanish completely, it's estimated that you'll only receive 81% of your benefits, at best.
Why? The fund has been running out of money for years, but President Donald Trump's One Big Beautiful Bill Act has sped up the timeline for depleting the fund. This budget bill increases the standard deduction for those 65 and older to $6,000 through 2028, offering a temporary tax break for some seniors collecting Social Security.
As a personal finance expert who's already saved enough to retire by 40, I've helped dozens of clients figure out a retirement savings plan that doesn't rely heavily on Social Security. Here's how Social Security benefits work and how to plan for your retirement without relying on this program's future.
Read more: Social Security 2025: What Goes Into Determining Your Monthly Payment and How to Maximize It
How do Social Security earnings work?
Social Security is a government-run program we pay into through our payroll taxes -- employees pay 6.2%, employers pay 6.2% and self-employed individuals pay the full 12.4%.
The money you pay in Social Security payroll taxes goes directly to current beneficiaries rather than into a personal savings account for you. So what you're paying now is for the generation before you and you will be paid out based on what the next generation puts into the pool of money.
How much you'll receive from Social Security depends on whether you're single or married, how much you earned over your 35 highest-earning years and the age you are when you retire. Most people can start claiming benefits at 62 but the longer you wait, the more your monthly payout could be. You can use the Social Security benefits calculator to estimate what you're expected to receive.
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