Wealth Insights

Are you ready for potential changes to Social Security?

The uncertainty surrounding the program doesn’t have to derail your long-term wealth plan.

By: Jama DeHeer CFP®, CDFA® and Senior Wealth Planner at Regions

Some commentators believe that Social Security’s trust fund will run out of money. Others insist Social Security will be around for the long haul. What we do know is that Social Security is not likely to disappear anytime soon.

Even if policymakers do nothing to strengthen the program, the Social Security Administration has enough in tax revenue to pay 100% of scheduled benefits through 2034 and approximately 83% in 2035. What’s less clear is which of many proposed changes—such as increasing the age when people can access benefits or decreasing the amount in benefits recipients get—may be implemented in coming years.

Here are a few things to do to protect your financial future.

1. Create a flexible plan

   Any strategy for retirement must be grounded in a plan, including how much money you will need and where those funds will come from. The question marks about Social Security underscore the need for flexible planning.

2. Maximize your benefit

   Make sure you’re not leaving money on the table. While you can begin taking Social Security when you turn 62, you’ll receive a reduced benefit if you retire before full retirement age (67 for people born in 1960 and later). If you delay drawing Social Security, you’ll boost your retirement benefit by 8% each year up until you turn 70.

3. Cultivate multiple incomes

   Financial planners have long used the metaphor of the three-legged stool of Social Security, employer-sponsored retirement plans and personal savings to describe the income needed to fund retirement. For every individual, the weight of each source will vary, but the larger point is the need to have several income streams.

4. Amass personal savings

   How much you save and the vehicles you use to save for retirement are in your control in a way Social Security is not. Your financial readiness for retirement will be enhanced by saving as much as possible in tax-advantaged accounts like 401(k)s and IRAs and taking full advantage of available employer matches.

5. Protect your SSN

   In 2024, hackers gained access to the Social Security numbers of millions of individuals. Ensure your info is safe:

   • Check your credit report for signs of suspicious activity.
   • Freeze your credit to keep fraudsters from opening new loan accounts.
   • Consider a monitoring service for breach alerts.

No one can predict how Social Security might change. But we can take ownership of what we can control.

Talk to your Regions Wealth Advisor about:

1. When drawing Social Security benefits would make the most sense based on your wealth plan.
2. How the Social Security program may change over the next few decades.

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