Will Social Security Run Out for Millennials? What Gen Z and Millennials Must Do Now

By 2035, Social Security’s trust funds face a critical shortfall. If lawmakers fail to act, benefit cuts of 17% could become reality—leaving millennials and Gen Z with significantly less support during retirement. The question isn’t whether the system will face challenges, but how today’s younger workers should prepare for an uncertain future.

You’re Already Paying In—Here’s What That Means

Whether you realize it or not, Social Security deductions are coming out of your paycheck every single month. The system operates on a simple premise: current workers fund today’s retirees, and tomorrow’s workers will eventually support you. It’s a generational chain that has held steady for decades.

According to financial experts, the program won’t disappear entirely. “Even if the trust fund runs dry, payroll taxes will continue generating revenue to pay benefits,” one financial advisor noted. However, the math doesn’t add up perfectly. “The government will likely need to intervene—either by raising the retirement age or adjusting tax rates to make the system sustainable long-term.”

The reality? You’re investing in a system that may look very different by the time you retire. For Gen Z and millennials, ignoring this fact is a luxury they simply cannot afford.

The Uncomfortable Truth About Relying Solely on Social Security

The average Social Security benefit today hovers around $2,000 monthly. In most cities, that’s barely enough to cover basic expenses, let alone maintain any reasonable standard of living. Financial experts are blunt about this reality.

“Millennials and Gen Z cannot assume they’ll receive the same benefits as retirees today,” industry leaders warn. “Policy changes are inevitable. Planning for alternative income sources isn’t optional—it’s essential.”

The math is sobering. If Social Security will run out for millennials as currently projected, and benefits face potential cuts, younger workers must accept one fundamental truth: Social Security alone won’t be your financial safety net.

Building a Stronger Retirement: Beyond Social Security

The solution lies in diversification. Relying on a single income source in retirement is a recipe for financial stress. Experts recommend a multi-layered approach:

Personal retirement accounts like 401(k)s and IRAs should form the foundation. These vehicles offer tax advantages and allow compound growth over decades—something millennials and Gen Z have plenty of.

Investment portfolios tailored to your risk tolerance can generate passive income. Starting early means you benefit from decades of market growth, even if markets experience downturns.

Additional income streams from side businesses, rental income, or other passive sources reduce dependency on any single source.

The consensus from financial professionals is clear: “Start saving now, stay consistent, and diversify aggressively. Prevention through early action beats scrambling later.”

The Time to Act Is Now

Will social security run out for millennials? Possibly, unless significant policy reforms occur. But waiting to find out isn’t a strategy—it’s gambling with your future.

Gen Z and millennials have one advantage: time. Every year you delay is compound interest you’re leaving on the table. The difference between starting retirement savings at 25 versus 35 can mean hundreds of thousands of dollars by retirement age.

The path forward requires three commitments: understand that Social Security’s future is uncertain, acknowledge that $2,000 monthly isn’t enough, and take action today by building diversified income sources. Your future self will thank you for the discipline you show now.