The fear that Social Security might run out of funds, runs deep amongst millions of Americans, as they have relied on Social Security as a vital source of income. On the 4th of July 2025, President Donald Trump signed a new budget law referred to as the “One Big Beautiful Bill.”
This bill adds trillions to the national debt, which could speed up cuts to Social Security. For millions of retirees, that means smaller checks sooner than expected.
Why This Bill Could Shrink Your Benefits
Even though the law focuses mainly on taxes, it has big ripple effects on Social Security:
- Over the next ten years, this plan is predicted to increase the national debt by almost $3 trillion. This puts pressure on policymakers to reduce Social Security and other services.
- Prior to the bill, the Social Security trust fund was already predicted to run out by the mid-2030’s, however, that prediction has been brought closer.
- To make room for tax breaks, programs like Medicaid and food assistance could be cut and Social Security may be next in line.
What the Cuts Might Look Like
Relax, worry not, your benefits are not completely disappearing, but your benefits could decrease over time:
- If the retirement age is increased and if people withdraw money earlier, the benefit cuts could be greater.
- Benefits won’t increase in line with inflation if COLA is decreased. When the cost of groceries, petrol and medical care keeps rising, it becomes an issue.
- Higher-paid retirees may receive fewer benefits, which would push more of the system’s expenses onto the middle class.
Why You Need to Act Now
Social Security is meant to be a safety net for American retirees and not the main source of income. It is important to note how quickly things can change and if decisions are not made now, beneficiaries may be at a risk in terms of their financial future.
It is important to act now and prepare in advance so that you have control over your financial future.
3 Smart Moves to Protect Your Monthly Check
You can’t stop Congress, but you can take steps to cushion the blow.
- Increase and Strengthen Your Earnings Record
Your lifetime earnings (highest 35 years of earnings) are used by Social Security to calculate your retirement benefits. It can be beneficial to work a few years longer as this can increase your benefits if you have years where your income was low. Even working part-time later in your career might assist make up for years when you didn’t make as much money.
- Try To Delay Taking Benefits if Possible
Where possible, wait until full retirement age or even better, wait until age 70 to claim benefits. This will ensure that you get maximum out of your Social Security checks.
- Build Other Income Sources
It is important to remember that Social Security does not make up your entire retirement income. Try to start saving from now and invest money into other saving accounts. Over time, even little contributions add up. In the event that your benefits are cut, side income, rental income, or part-time employment may also serve as a safety net.
The Big Picture
Retirees must think long term when considering Social Security benefits. Yes, it isn’t going away but the benefits could potentially be reduced if no changes are made.
It is extremely important to start preparing from now, be sure to make wise and proactive decisions to secure your finances so that you are able to have a stress-free retirement.