Financial Advisors Share 7 Ways to Prep for Social Security Uncertainty

There are 71.6 million Americans who receive benefits from programs administered by the Social Security Administration.

Despite the fact that many people rely on social security for various reasons, one thing that is certain about the program is that its future is wholly uncertain.

From DOGE reforms to risks of it running out, there are so many reasons why Americans are struggling to account for it in their future plans.

To help navigate these choppy waters, FinanceBuzz spoke with several financial experts and asked them how they'd advise current and future retirees to best prepare for the unknown and check up on their retirement readiness.

Here are seven crucial takeaways retirees should consider for their financial future, especially when social security may or may not come into play.

Mentally (and practically) prepare for the worst

While it's impossible to predict the future, there is plenty of evidence that suggests savers can insulate themselves from the potential risk of losing access to benefits by building a retirement nest egg.

"If no changes are made to Social Security, most economists predict the Social Security trust fund will run out by 2033," warns Steve Sexton, CEO of Sexton Advisory Group.

"Those who plan to retire in 10 years or beyond should view Social Security as a supplemental element of their retirement income, but not the main source… If you want to be conservative in your financial planning, I wouldn't recommend banking on it at all."

That isn't to say it definitely won't be there, but assuming it won't could set you up for greater success.

"Policy changes like implementing more taxes or raising the retirement age could possibly replenish this fund, but I don't recommend banking on these reforms to make or break your retirement finances."

Seek out additional retirement income streams

Regardless of its future status, relying on a single income stream is risky.

"The fluctuating stock market, the rising cost of living, and the unpredictability of this administration make it risky to have your livelihood in retirement entirely depend on Social Security, or any one source of income, " says Sexton.

Sexton continues, "This is why we work with our clients well in advance to ensure they have multiple streams of income in retirement; doing so will safeguard their financial stability in their golden years."

Some other income streams to consider during retirement include stock dividends, rental income, and paychecks from a part-time job.

Panicking won't help; practicality will

There's a lot of chatter about the potential for Social Security benefits to be disrupted at some point in the future. But since nothing has come to pass yet, panicking isn't necessary.

"Future retirees should have some concerns and plan accordingly, but I recommend not panicking," says Jason Bernat, President & CEO of American Financial Services.

Bernat continues, "Congress is likely to act, and Social Security will still be collecting taxes. If any Social Security reforms are made, they'll likely affect younger workers or higher-income earners closer to retirement."

Making a plan is the only effective way to deal with uncertainty.

Anticipate costs and expenses

As you build a retirement savings plan, understanding your expected retirement costs is helpful.

"It is important to run a thorough and realistic analysis of your expected costs in retirement, including medical and long-term care, and understand how that stacks up in relation to your expected income," says Sexton.

Making an effort to understand how much you'll need and what your Social Security benefits might look like can help you build out an appropriate retirement savings plan.

Lean on expert guidance

Navigating Social Security benefits and retirement from a one-size-fits-all perspective is a mistake.

Bernat advises, "I recommend meeting with a financial advisor to design a plan for your specific retirement situation."

Having an expert-backed plan can make achieving your retirement financial goals so much more feasible, and using it to help figure out what to do if Social Security disappears will help make it more manageable.

Delay taking Social Security

As you build out your retirement plan, deciding when to apply for Social Security benefits matters.

"Social Security benefits increase for each month you delay taking them past your full retirement age (FRA), up until age 70," says Chad D. Cummings, CPA and attorney at The Law Office of Chad D. Cummings.

Delaying benefits to increase their future monthly check makes sense if it is still accessible, and if it is not, it allows you more time in the workforce to insulate yourself.

Maximize contributions as much as possible

Simply put, your future self will appreciate that you prized "them" now.

"Because it can be so challenging to save enough money for retirement, it's really important that workers contribute as much as they can to their retirement accounts each year," says Erika Kullberg, a personal finance expert and founder of Erika.com.

Kullberg continues, "Especially if they have access to an employer-sponsored 401(k) plan with an employer match. If possible, max out your contributions each year so you can collect as much free money from your employer and enjoy as many tax savings as possible."

Bottom line

With more than half of non-retired US adults saying they will rely heavily on Social Security benefits in their golden years, a stress-free retirement requires being realistic about access to those benefits.

When it is highly likely that Social Security payments alone won't be enough, following this advice well in advance of retirement could make a huge difference in the quality of your golden years.