Should Younger Americans Plan for a Retirement Without Social Security?

If you’re a Millennial or Gen Z worker, chances are you’ve heard that Social Security may not be around by the time you retire. While that statement might be a bit dramatic, it’s rooted in very real concerns. 

With the Social Security Trust Fund facing depletion within the next decade, younger Americans are being forced to ask a difficult question: Should we plan for a retirement that excludes Social Security altogether?

The Outlook for Social Security

The Social Security Trustees' 2025 report offers a sobering prediction: the Old-Age and Survivors Insurance (OASI) Trust Fund will be able to pay 100% of scheduled benefits only until 2033. At this point, the fund’s reserves will be depleted, and benefits could be cut by as much as 23%.

The issue at the heart of this crisis is demographic. When Social Security began in the 1930s, there were many more workers paying into the system than retirees drawing benefits from it. In 1950, there around 16 workers paying into the system for every retiree. Today, that ratio is closer to 2.7 and may drop to 2.1 within the next 50 years. With people living longer and birth rates declining, there simply aren’t enough new workers to sustain current benefit levels without major reform.

How the Generations View Retirement and Social Security

All generations after the Boomers appear to have deep concerns about the viability of Social Security. According to Northwestern Mutual’s 2025 Planning & Progress Study, 26% of Gen Z adults, 39% of Millennials, and 47% of Gen Xers include the question “Will Social Security be there when I qualify for it?” as one of their top three “burning questions” about retirement. More than half of individuals from all three generations believe it is likely they will outlive their savings, too.

These concerns are not unfounded. Many young workers feel unprepared for retirement overall. The same Northwestern Mutual study found that Americans believe they will need $1.26 million to retire comfortably, yet the average personal savings for retirement is far lower. The gap between expectations and reality is causing anxiety.

According to Investopedia, Gen X particularly harbors a lot of doubt about their retirement preparedness. The average Gen X household has only saved $40,000, and 40% of Xers have nothing saved for retirement at all.

What Would Retirement Look Like Without Social Security?

If benefits were significantly reduced or eliminated altogether, the implications for retirement planning would be massive. Today, Social Security provides about 30% of annual income for the average retiree. Without it, retirees would need to rely much more heavily on personal savings, investments, and employer-sponsored retirement plans.

One rule of thumb used by financial planners is the “Rule of 25,” which suggests saving 25 times your anticipated annual expenses to retire securely. That means someone who expects to need $50,000 a year would need to save $1.25 million. If Social Security is not part of that income stream, this savings target becomes even more critical.

Another concern is longevity risk, which is the possibility of outliving your savings. With lifespans increasing, retirees may need to fund 25 to 30 years of living expenses. Without a guaranteed income like Social Security to fall back on, this risk becomes even greater.

What Steps Should Younger Workers Take Now?

The good news is that there are practical steps you can take now to reduce your reliance on Social Security and build a more secure financial future. Younger generations also have the advantage of having more time to build up their savings—and recover from any market downswings—than older individuals.

Start saving early and consistently. Thanks to compound interest, the earlier you begin contributing to retirement accounts, the more time your money has to grow. Take advantage of employer-sponsored 401(k) plans and IRAs, and aim to contribute at least enough to get your full employer match if one is offered.

Diversify your retirement income sources. In addition to traditional retirement accounts, consider taxable brokerage accounts, annuities, or even real estate investments. A diversified portfolio helps reduce risk and can provide multiple income streams during retirement. Also, choosing to fund a ROTH IRA every year will lead to a large pool of tax free money for retirement, which means you may need to accumulate less, as there will be no taxes due on withdrawals from these accounts.

Plan as if Social Security will be reduced or delayed. Financial advisors increasingly recommend using conservative estimates for Social Security income or excluding it entirely from long-term planning. This approach ensures your plan is robust, even in the face of future policy changes.

In addition, you can also consider working longer or planning for flexible work later in life. Delaying retirement by just a few years can significantly increase your savings and reduce the number of years your savings need to last. Some retirees choose part-time or consulting work to ease the financial transition. This isn’t always an option for every person, due to health issues, but if you are able, putting off retirement can pay off.

Stay informed about legislative developments. While the complete elimination of Social Security is unlikely, changes are coming. Proposals that have been floated include increasing payroll taxes, raising the retirement age, or means-testing benefits. Being aware of these changes will help you adjust your strategy over time.

Final Thoughts: Is It Really All or Nothing?

It’s important to remember that while the situation is serious, it’s not necessarily catastrophic. Most experts agree that Congress is unlikely to allow Social Security to completely fail. However, reforms may result in smaller benefits, a later retirement age, or reduced cost-of-living adjustments. That means younger Americans may still receive some level of support, but it won’t be enough to rely on exclusively. In the spring of 2025, Elon Musk and his DOGE team discovered over 20 million names on the Social Security database that showed ages of over 100, and within a few months over 12 million were removed. So the system may be stronger (once the fraud levels are reduced significantly in the coming months and years) than the trustees were thinking, before 2025’s revelations.

Planning for a retirement without Social Security does not mean assuming the worst. It simply means building a financial plan that is resilient enough to adapt to uncertainty. If Social Security is still available when you retire, it will be a welcome bonus. If not, you won’t be left scrambling.

The future of Social Security is uncertain, and it would be unwise to base your entire retirement strategy on a system that could undergo significant changes. The smartest move younger Americans can make today is to plan conservatively, save aggressively, and diversify income streams.

Whether Social Security ends up providing full benefits, partial support, or no help at all, your personal financial strategy will be your most reliable safety net.