By Tyler Plack
Tyler Plack is the Chief Executive Officer of South River Mortgage. He joined the company as a founding employee in 2017 and served as President before becoming CEO in 2026. Tyler holds an active FHA Direct Endorsement (DE) underwriting certification.
For decades, Social Security has been a bedrock of retirement planning in America. You’ve paid into it your whole working life, with the understanding that those benefits will be there when you need them.
But every so often, headlines warn that the Social Security trust fund is “running out of money.” That can make anyone nervous—especially if you’re already retired or getting close.
So… what would really happen if Social Security ran out? And what can you do now to protect your retirement lifestyle?
In this article8 sections
First, the Good News
Despite the doom-and-gloom headlines, Social Security isn’t expected to vanish overnight.
Under the 2026 Trustees Report’s intermediate assumptions, ongoing program income would still cover about 83% of scheduled benefits when the combined trust-fund reserves are depleted. That projection does not mean benefits are guaranteed to be cut; it means lawmakers would need to act to maintain full scheduled benefits.
That is the planning concern: a possible reduction in monthly income, not a total shutdown. For many retirees, even a change in guaranteed income could affect how they cover essentials.
The Timeline for Social Security Changes
The 2026 Trustees Report projects the combined Old-Age and Survivors Insurance and Disability Insurance reserves could be depleted in 2034 under its intermediate assumptions. Continuing income would cover about 83% of scheduled benefits at that point.
The OASI and DI funds are legally separate, and the combined projection assumes a change in law allowing transfers between them. The projection is not a promise of an individual’s future benefit.
Why a Possible Benefit Change Matters for Retirement Planning
If Social Security were your only source of income, any reduction could require difficult choices, such as:
- Downsizing your home or moving somewhere cheaper
- Delaying medical procedures or home repairs
- Cutting back on travel, hobbies, or helping family
Even with other savings, a change in guaranteed income could put more pressure on your nest egg. No one can predict an individual benefit change from the national projection alone.
Why a Possible Benefit Change Matters for Retirement Planning
If Social Security were your only source of income, any reduction could require difficult choices, such as:
- Downsizing your home or moving somewhere cheaper
- Delaying medical procedures or home repairs
- Cutting back on travel, hobbies, or helping family
Even with other savings, a change in guaranteed income could put more pressure on your nest egg. No one can predict an individual benefit change from the national projection alone.
Check your eligibility
A few details to help us understand your options.
How to Prepare for the “What If”
No one can predict exactly how Congress will handle Social Security’s future. But you can take steps to make sure your retirement doesn’t hinge entirely on political decisions:
- Diversify your income streams – Pensions, investments, part-time work, rental income—each one adds a layer of security.
- Lower ongoing expenses – Reducing debt and cutting unnecessary costs gives you more breathing room.
- Make your home work for you – For many retirees, the largest untapped source of wealth is their home equity.
Additional Safety Nets
In addition to diversifying income and cutting expenses, consider building a financial cushion now. A reverse mortgage line of credit may be one option to discuss with a qualified adviser, depending on your circumstances.
That way, you can evaluate another potential source of funds if your retirement income changes.
Where a Reverse Mortgage Fits In
If you own your home and are 62 or older, a reverse mortgage may be one option to discuss as part of a broader retirement plan. It allows you to access home equity while retaining ownership, subject to loan terms, obligations and eligibility requirements.
FAQs
Will Social Security really run out of money?
No. The 2026 Trustees Report projects that ongoing income would cover about 83% of scheduled benefits when combined trust-fund reserves are depleted in 2034 under its intermediate assumptions. See the SSA explanation of scheduled and payable benefits.
When could changes happen?
The 2026 Trustees Report projects combined reserve depletion in 2034, but lawmakers may act before then.
What are some possible policy responses?
Lawmakers could consider changes to revenue, benefits or other program rules. The specific outcome cannot be predicted from the Trustees’ projection.
How can a reverse mortgage fit into planning?
For some homeowners, home equity may be one part of a broader retirement-income discussion. Eligibility and terms depend on the borrower, property and loan requirements.
Should I explore options before any Social Security changes?
Consider reviewing your full retirement-income plan with qualified professionals and comparing options based on your own circumstances.
