You’ve spent decades paying into Social Security, trusting it would be there when you finally stopped working. But new projections from the program’s own trustees paint a picture that deserves your full attention right now.

The Old-Age and Survivors Insurance trust fund, which finances retirement benefits for roughly 70 million Americans, is on track to run out of reserves by 2033. If Congress doesn’t act before that deadline, beneficiaries could see their monthly checks slashed by nearly 23% overnight.

For someone collecting the current average retirement benefit of about $2,071 per month, that translates to losing roughly $476 every single month. Multiply that over a year, and you’re looking at more than $5,700 in lost income.

Fidelity Investments, one of the largest retirement plan administrators in the country, recently published a detailed guide outlining four strategies that could help shield your retirement income from this potential shortfall. Here’s what they recommend and how each move could directly affect your monthly cash flow in retirement.

Social Security’s funding crisis is closer than most people realize

The 2025 Trustees Report confirmed that the OASI trust fund’s reserve depletion date remains locked at 2033, unchanged from the prior year’s estimate. Program costs have exceeded total income every year since 2021, and the gap is projected to widen through the next decade.

After 2033, incoming payroll tax revenue would cover only about 77% of scheduled benefits, according to the Social Security Administration. That’s not a theoretical exercise from some think tank; it’s the government’s math based on current law.

Three-quarters of Americans already worry that Social Security will run out of funding before they retire, according to a Bipartisan Policy Centre survey. The concern is justified, but panic-driven decisions, such as claiming benefits too early, can make the problem significantly worse for you.

Delaying your Social Security claim could be worth thousands more

If you’re approaching retirement age, the most powerful lever you have is the timing of your Social Security claim. Fidelity’s experts describe this as the single most impactful decision older workers can make to protect their retirement income.

Your monthly benefit grows for every year you delay claiming past your full retirement age, which is 67 for anyone born after 1960. Claiming at 62 instead of 67 permanently reduces your monthly check by 30%, a lasting hit to your income.

The math behind delaying your claim

If you wait until age 70 instead of claiming at 62, your benefit increases by roughly 8% for each year you delay. For someone with a $2,000 monthly benefit at full retirement age, that translates to roughly $2,480 per month at age 70.

Yet more than a quarter of eligible Americans still claim at 62, the earliest possible age, according to the Centre for Retirement Research at Boston College. Brad Koval, a director at Fidelity’s Financial Solutions Team, notes that current uncertainty may push more people into hasty decisions.

The bottom line for you: if you can afford to delay, every year of patience adds thousands in cumulative lifetime income. Claiming early out of fear that the program will disappear entirely misreads the most likely outcome: a partial reduction in benefits.

Younger workers should boost savings rates before it’s too late

If you’re decades away from retirement, Fidelity says your best defence against potential Social Security cuts is straightforward: save more now. Even a 1% increase in your annual savings rate can produce a meaningful difference in your retirement nest egg over time.

The power of compounding is what makes early action so valuable for younger savers building toward retirement decades away. A 30-year-old who bumps up contributions by just $100 per month could accumulate tens of thousands more by age 65.

The compounding advantage you can’t afford to ignore

Congress has historically reached compromises to keep Social Security funded, including the landmark 1983 reforms led by the Greenspan Commission. Those changes raised the full retirement age, increased payroll taxes, and began taxing benefits for the first time.

Future reforms will likely follow a similar playbook, phasing in changes over the years so they affect younger workers more than current retirees. If you’re in your 20s, 30s, or 40s, you should plan for smaller benefits when your turn comes.

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Log in to your retirement plan and increase your contribution rate by at least 1 percentage point. If your employer offers a matching contribution, make sure you’re saving enough to capture every dollar of that free money.

Catch-up contributions can help close the gap for workers over 50

The IRS raised contribution limits for 2026, giving older workers more room to accelerate their retirement savings before the Social Security deadline arrives. If you’re 50 or older, you can now contribute significantly more to your workplace plan and individual retirement accounts.

2026 contribution limits you should know

• The base 401(k) contribution limit rose to $24,500 for all workers, up from $23,500 in 2025, per the IRS.
• Workers aged 50 and older can contribute an additional $8,000 in catch-up contributions, for a total annual limit of $32,500 in their 401(k).
• Workers between ages 60 and 63 qualify for a “super catch-up” of $11,250, bringing their potential total to $35,750.
• The IRA contribution limit increased to $7,500, with an additional $1,100 catch-up for savers aged 50 and older.

There’s an important new wrinkle starting in 2026 that high earners need to understand before making their next contribution decision. Under SECURE 2.0, workers who earned more than $150,000 in FICA wages the previous year must now make catch-up contributions on a Roth basis.

Catch-up contributions offer a critical opportunity for older workers to strengthen their retirement savings before benefit reductions potentially arrive.

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What the Roth catch-up rule means for high earners

If your plan doesn’t offer a Roth 401(k) option, you simply won’t be able to make catch-up contributions at all in 2026. Check with your human resources department now to confirm your plan’s Roth availability before the year gets any further along.

You might also consider a Roth conversion strategy, which involves moving money from a traditional IRA or 401(k) into a Roth account. You’ll pay income taxes on the converted amount now, but qualified withdrawals in retirement are tax-free.

Related: Roth 401k match could trigger a surprise tax bill

Roth accounts also aren’t subject to required minimum distributions during the original owner’s lifetime, giving you more flexibility. For workers concerned about future tax rates and shrinking Social Security, building a Roth balance offers a genuine planning hedge.

Fidelity’s annuity options create an income that replaces Social Security

The fourth strategy Fidelity recommends is to create your own pension-like income stream through annuities, which guarantee payments regardless of market conditions. Social Security is essentially a government-backed, inflation-adjusted pension, and annuities can partially replicate that function for your portfolio.

Three annuity types matched to your retirement timeline

• Variable annuities suit workers many years from retirement, offering market exposure through underlying investment options with tax-deferred growth potential.
• Deferred income annuities work best for pre-retirees, locking in guaranteed payments that start on a future date you choose and reducing market volatility risk.
• Immediate fixed income annuities fit those already retired, converting a lump sum into guaranteed monthly income that starts right away, unaffected by stock swings.

Annuities are complex products, and their guarantees depend entirely on the financial strength of the issuing insurance company. Fees, surrender charges, and liquidity restrictions vary widely, so you should compare multiple options before committing any of your savings.

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Immediate fixed income annuities can include optional cost-of-living adjustments to help your payments keep pace with rising prices over time. Beneficiary protections, such as a cash refund feature, ensure that your heirs recover remaining value if you pass away unexpectedly.

Congress has always found a way to keep Social Security alive

Before you restructure your entire retirement plan around worst-case scenarios, consider the historical track record of Social Security reform. Congress has intervened multiple times over the program’s 90-year history, and those changes have consistently preserved benefits for current recipients.

The 1983 reforms are the clearest example: lawmakers raised the retirement age, increased payroll taxes, and began taxing benefits up to 50 %. An additional tax of up to 85% on income-based benefits was added in 1993, further extending the program’s financial runway.

What future reforms could realistically look like

Possible solutions include raising the payroll tax cap, currently set at $184,500 in 2026, so that higher earners contribute more into the system. Other proposals include gradually increasing the full retirement age or modifying the cost-of-living adjustment formula used for annual benefit increases.

The Bipartisan Policy Centre notes that the longer Congress waits to act, the harder the math becomes and the more drastic the eventual changes will be. Workers and retirees who prepare now give themselves the most options, regardless of which political path Congress ultimately takes.

Your next steps to protect the retirement income you’ve been counting on

You don’t need to panic about Social Security’s funding gap, but you absolutely shouldn’t ignore it or assume someone else will fix it for you. Fidelity’s four strategies offer a practical framework, and the right combination depends on your age, income level, and current savings balance.

Quick action checklist for every age group

• If you’re 60 or older: Delay your Social Security claim if financially possible; every year of waiting adds roughly 8 % to your monthly benefit.
• If you’re 50 to 59: Max out catch-up contributions in your 401(k) and IRA; explore Roth conversions to build a tax-free income source in retirement.
• If you’re under 50: Increase your savings rate by at least one %age point today; take full advantage of your employer’s matching contribution formula.
• At any age: Consult a financial professional about whether annuities make sense as part of your guaranteed income strategy going forward in retirement.

The Social Security Administration projects that roughly one-quarter of beneficiaries aged 65 and older receive 50% or more of their income from Social Security. If that describes you, or might describe your future self, the time to build additional income sources is now.

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