The financial future of the more than 70 million Americans who receive Social Security benefits remains in question as the fund that pays beneficiaries is projected to become insolvent within six years.
Released in June, the 2026 Social Security Trustees Report forecast that the Old-Age and Survivors Insurance (OASI) trust fund will be depleted in the fourth quarter of 2032, one quarter earlier than projected last year.
Without government action, that would result in an estimated 22% reduction in scheduled benefits
The report pointed to lower birth rates and immigration numbers as major factors, as well as tax cuts made permanent by the One Big Beautiful Bill Act that reduced future revenue from income taxes on Social Security benefits.
Preventing a shortfall will likely involve trimming benefits, raising the eligibility age or increasing the Social Security payroll tax.
Here's what to know about the future of Social Security and how to financially prepare for retirement.
See if an annuity is your pathway to a financially secure retirement
Will Social Security run out?
How Social Security works
Social Security is funded through payroll deductions, with workers and employers each contributing 6.2%. In 2026, the maximum amount of earnings subject to Social Security tax rose to $184,500, up from $176,100 in 2025.
When you contribute to Social Security, the money doesn't go directly into your account: It goes into a fund that pays for current retirees' benefits.
For every dollar you pay, 85 cents goes towards the OASI Trust Fund, which pays retirement and survivor benefits. The remaining 15 cents goes into the Disability Insurance (DI) Trust Fund, for disabled workers and their families.
While it's intended to supplement retirement savings, more than a quarter (27%) of recipients said their entire income comes from their benefits checks, according to the Center on Budget and Policy Priorities.
Changes to Social Security benefits and revenue sources need to come from Congress. There are different strategies, but most involve one or more of the following:
- Cutting Social Security benefits
- Increasing the payroll tax (or the income limit)
- Increasing the age at which taxpayers can claim benefits
The last time Social Security faced a reserve deficit was in 1983. Bipartisan legislation increased the full retirement age from 65 to 67 and instituted an income tax on Social Security benefits.
The Social Security cost-of-living adjustment (COLA)
In addition to meeting its current obligations, the Social Security fund must also account for the annual cost-of-living adjustment (COLA), which modifies recipients' payments to reflect inflation.
The adjustment is based on the change in the Labor Department's Consumer Price Index from the third quarter of the prior year to the third quarter of the current year.
The COLA for 2026 was 2.8%, increasing benefit checks by an average of about $56 per month.
Beyond Social Security: How to save for retirement
According to AARP, Social Security is only designed to replace approximately 40% of your paycheck. To supplement that, experts recommend setting aside 10% to 15% of each paycheck for retirement savings. If that's not feasible, you can start small and increase contributions over time.
Retirement accounts
A 401(k) is a retirement investment plan sponsored by an employer. Contributions are tax-deferred, so they can lower your taxable income the year they're made and give you more to invest. If your company matches 401(k) contributions, maxing out your contributions should be your priority. Many employers will match between 2% and 6% of an employee's annual salary.
An individual Retirement account (IRA) is another investment option, but it's not connected to your employer and typically has more options. A traditional IRA is tax-deferred, and contributions can be tax-deductible. Funds in the account grow tax-free, but withdrawals are subject to income tax when you take distributions.
We tapped Charles Schwab and Betterment as two of the best places to open an IRA. Betterment has no minimum requirement, while Schwab offers commission-free trading for U.S.-listed stocks and ETFs.
Fidelity Investments
Minimum deposit and balance
Minimum deposit and balance requirements may vary depending on the investment vehicle selected. No minimum to open a Fidelity Go® account, but minimum $10 balance for robo-advisor to start investing.
Fees
Fees may vary depending on the investment vehicle selected. Zero commission fees for stock, ETF, options trades and some mutual funds; zero transaction fees for over 3,400 mutual funds; $0.65 per options contract. Fidelity Go® has no advisory fees for balances under $25,000 (0.35% per year for balances of $25,000 and over, which includes access to unlimited 30-minute coaching calls with a Fidelity advisor and tax-loss harvesting on taxable accounts).
Bonus
None currently. Check Fidelity's promotions page for the latest offers here.
Investment vehicles
Robo-advisor: Fidelity Go® IRA: Traditional, Roth and Rollover IRAs Brokerage and trading: Fidelity Investments Trading Other: Fidelity Investments 529 College Savings; Fidelity HSA®
Investment options
Stocks, bonds, ETFs, mutual funds, CDs, options and fractional shares
Educational resources
Extensive tools and industry-leading, in-depth research from 20-plus independent providers
Terms apply.
Pros
- No commission fees for stock, ETF, options trades
- No transaction fees for over 3,400 mutual funds
- Fidelity Go® portfolios use Fidelity Flex® mutual funds with zero expense ratios
- Human advisors manage day-to-day Fidelity Go® portfolio decisions
- Unlimited 30-minute coaching calls with a Fidelity advisor for accounts of $25,000 and over (at no extra cost)
- Tax-loss harvesting available on taxable Fidelity Go® accounts with $25,000 or more
- Abundant educational tools and resources with research from 20-plus independent providers
- 24/7 customer service
- Over 100 brick-and-mortar branches across the U.S. for face-to-face support
Cons
- Fidelity Go® has a 0.35% advisory fee per year for balances of $25,000 and over
- Fidelity Go® invests only in Fidelity Flex® mutual funds (no third-party ETFs or individual securities available)
- No socially responsible or ESG portfolio option through Fidelity Go®
- Some of Fidelity's mutual funds require reaching specific thresholds
- Reports of platform outages during heavy trading days
Charles Schwab
Minimum deposit and balance
Minimum deposit and balance requirements may vary depending on the investment vehicle selected. No account minimum for active investing through Schwab One® Brokerage Account. Automated investing through Schwab Intelligent Portfolios® requires a $5,000 minimum deposit
Fees
Fees may vary depending on the investment vehicle selected. Schwab One® Brokerage Account has no account fees, $0 commission fees for stock and ETF trades, $0 transaction fees for over 4,000 mutual funds and a $0.65 fee per options contract
Investment vehicles
Robo-advisor: Schwab Intelligent Portfolios® IRA: Charles Schwab Traditional, Roth, Rollover, Inherited and Custodial IRAs; plus, a Personal Choice Retirement Account® (PCRA) Brokerage and trading: Schwab One® Brokerage Account, Schwab Global Account™, Schwab Organization Account and Schwab Trading Powered by Ameritrade™
Investment options
Stocks, bonds, mutual funds, CDs and ETFs
Educational resources
Schwab offers courses, educational articles, videos, and webinars for investors at every level, plus advanced screeners, research tools, and market insights through the Schwab Center for Financial Research.
Terms apply.
Pros
- $0 minimum deposit for active investing
- No commission fees for stock and ETF trades; no transaction fees for over 4,000 mutual funds
- thinkorswim® trading platform offers advanced charting, strategy testing and multi-device access
- Robo-advisor Schwab Intelligent Portfolios® available with no advisory fee or commissions
- Access to on-demand advice from Schwab investment professionals
- Nearly 400 brick-and-mortar branches across the U.S. for in-person support
Cons
- $5,000 minimum required for Schwab Intelligent Portfolios® robo-advisor
- $0.65 fee per options contract
- Tax-loss harvesting only available on balances of $50,000 or more within Intelligent Portfolios®
- High cash allocation requirement in Intelligent Portfolios® may limit returns compared to competitors
Money contributed to a Roth IRA is taxed before you contribute it, so your investments can grow tax-free and withdrawals in retirement are also tax-free. Ally Invest and Wealthfront rank among the best options for Roth IRAs.
Ally Invest®
Minimum deposit and balance
Minimum deposit and balance requirements may vary depending on the investment vehicle selected. No account minimum for Self-Directed Trading. $100 minimum for Robo Portfolios
Fees
Fees may vary depending on the investment vehicle selected. Self-Directed Trading has zero commission fees for stock, ETF, options trades; $0.50 per options contract. Robo Portfolios have zero management fees
Investment vehicles
Robo-advisor: Ally Invest Robo Portfolios IRA: Ally Invest Traditional, Roth and Rollover IRAs Brokerage and trading: Ally Invest Self-Directed Trading
Investment options
Stocks, bonds, ETFs, options, mutual funds, margin account and forex trading
Educational resources
Offers informational articles to help users improve their understanding of investment strategies and market trends
Terms apply.
Wealthfront
Minimum deposit and balance
Minimum deposit and balance requirements may vary depending on the investment vehicle selected. $500 minimum deposit for investment accounts
Fees
Fees may vary depending on the investment vehicle selected. Zero account, transfer, trading or commission fees (fund ratios may apply). Wealthfront annual management advisory fee is 0.25% of your account balance
Bonus
None
Investment vehicles
Investment options
Stocks, bonds, ETFs and cash. Additional asset classes to your portfolio include real estate, natural resources and dividend stocks
Educational resources
Offers free financial planning for college planning, retirement and homebuying
Terms apply.
There are also robo-advisor services that can build a portfolio for you based on your risk tolerance and time horizon and rebalance as you get closer to retirement. CNBC Select's top picks for robo-advisors include E-Trade and SoFi Invest®.
E*TRADE
Minimum deposit and balance
Minimum deposit and balance requirements may vary depending on the investment vehicle selected. No minimum to open an E*TRADE brokerage account; minimum $500 deposit to invest in robo-advisor platform Core Portfolios
Fees
Fees may vary depending on the investment vehicle selected. Zero commission fees for stock, ETF and options trades; zero transaction fees for over 4,400 mutual funds; robo-advisor Core Portfolios charges 0.30% annual advisory fee
Investment vehicles
Robo-advisor: E*TRADE Core Portfolios IRA: E*TRADE Traditional, Roth, Rollover, Beneficiary, SEP and SIMPLE IRAs, IRA for Minors and E*TRADE Complete™ IRA Brokerage and trading: E*TRADE Trading Other: E*TRADE Coverdell ESA (Education Savings Account), Custodial Account for minors and small business retirement plans
Investment options
Stocks, bonds, mutual funds, CDs, ETFs, options and futures
Educational resources
Educational library includes in-depth articles and videos for any type of investor
Terms apply.
SoFi Invest®
Minimum deposit and balance
Minimum deposit and balance requirements may vary depending on the investment vehicle selected. No account minimum for active or automated investing, or to participate in IPOs. $5 minimum to own a fractional share of a company.
Fees
Fees may vary depending on the investment vehicle selected. Active investing has zero commission fees for trading stocks and ETFs (exchange and fund management fees may apply). Automated investing has zero management fees
Bonus
Get up to 1,000 in stock when you open & fund a new Active Invest account.
Investment vehicles
Robo-advisor: SoFi Automated Investing IRA: SoFi Traditional, Roth, SEP and Rollover IRAs Brokerage and trading: SoFi Active Investing
Investment options
Stocks, bonds, ETFs, fractional shares and IPO participation
Educational resources
Investors can create a personal watchlist that follows their stocks to stay up to date and receive the latest investing news
Terms apply.
*Probability of Member receiving $1,000 is a probability of 0.026%; If you don't make a selection in 45 days, you'll no longer qualify for the promo. Customer must fund their account with a minimum of $50.00 to qualify. Probability percentage is subject to decrease.
INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE
Brokerage and Active investing products offered through SoFi Securities LLC, member FINRA/SIPC
Automated investing is offered through SoFi Wealth LLC, an SEC-registered investment adviser.
Annuities
If you're worried about outliving your retirement savings, an annuity can also offer guaranteed income for a set period or even for life. Athene and Gainbridge are two of CNBC Select's picks for the best annuity companies.
Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability.
Immediate annuities, fixed annuities, fixed indexed annuities, registered index-linked annuities
$10,000 for Athene Agility, Athene Protector, Athene MaxRate, Athene Ascent Pro and Athene Performance Elite
Gainbridge Save℠ annuities grow at a fixed interest rate, making them a great option for investors who don't want to assume too much risk.
Gainbridge annuities don't have upfront sales charges or administrative fees. However, withdrawal fees and surrender charges may apply if you withdraw above 10% of your account's value per year.
Social Security FAQs
How much is the average Social Security check?
As of June 2026, the average Social Security monthly check for retired workers was about $2,084. The average for all Social Security beneficiaries, including survivors and those with disabilities, is approximately $1,938.
When will Social Security run out?
According to analysts at the Congressional Budget Office, without congressional action, the Social Security trust fund will be depleted in 2032. That doesn't mean Social Security will "run out," but recipients would only be able to receive about 78% of their full benefits.
When can I start receiving Social Security?
You can start collecting Social Security benefits as early as 62, but the amount will be lower than if you waited for your full retirement age (FRA). If you turn 62 in 2026, for example, your benefit would be about 30% lower than if you waited until you turned 67.
Can I draw Social Security and still work full-time?
You can receive Social Security retirement benefits and work full-time. If you haven't reached full retirement age and earn more than the yearly earnings limit, however, your benefits will be reduced.
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At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed financial decisions. Every retirement article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of retirement savings products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
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