Can Retirees Outlive Social Security Benefits?

Figuring out your retirement plan can be exciting, confusing, and overwhelming all at the same time. There might be some telltale signs that you are not ready to retire or perhaps you have gone down a path of trying to figure out how and where you can live on Social Security alone. The bottomline is that no matter what your plan for retirement is, you need to stay up to date on the facts and be aware of myths that have strayed other retirees down the wrong path to financial ruin.

Ameriprise Financial noted that one such misconception is that retirees can outlive Social Security. Even with the Social Security Administration's guide to calculating your retirement benefits, there is simply no way to game the system and outlive Social Security. It does not matter when you choose to take advantage of your benefits because you will continue to get an amount of money each month up until your death. There are strategies to figure out how much money you'll need to retire rich and other methods to ensure you do not go poor in retirement, but thinking you can outlive Social Security is not one of them.

Social Security has been part of the entitlements Americans have expected for close to 100 years. In 1935, President Roosevelt signed the Social Security Act amidst the turmoil of the Great Depression, making it a law that all American citizens were entitled to certain benefits of income, including once they retired. This money was backed by the federal government of the United States and would balance itself according to inflation with cost of living adjustments.

There are some terrible myths about Social Security, including that anyone can outlive it, but one estimation seems to be more true by the day: that in the near future, Social Security will reach a point where it's unable to pay out full benefits. NPR reported that this may happen by 2033 if U.S. Congress does not act soon to avoid that calamity, which would cost 60 million retirees and family members 23% of their benefits. This is bad news in the wake of DOGE cutting Social Security offices across the country at the start of 2025, making the forecast for the future of the program more unclear.

Everyone is different in terms of how they live and the kind of work they did over the course of their career. Ultimately, while we all can plan for retirement, we might all do it in a different way, and what your lifestyle looks like in retirement will determine how successful you are in it. In order to get to that point, though, there are a couple of key steps you can take to ensure you are set for retirement that involves, but does not solely rely on, Social Security.

Forbes recommended that when it comes to retirement planning, calculate all of your assets and liabilities, as well as deal with your debt, in order to have a clear view of your finances before you decide to take Social Security. If you did not save up a nest egg or have a 401(k) to cash in, you might need to still work a part-time job in retirement, so it's important to find an income stream that will not affect your Social Security. Work with a financial advisor to set up a budget, as well as go over your monthly costs, as well as how you are going to pay for things like healthcare, transportation, and other major expenses.