One critical thing every retiree (if not every American) needs to know about Social Security in 2025 is that the program is in trouble.

Some scary headlines may have you believing it’s going to run out of money completely and will soon be unable to pay retirees anything, but that’s not the case. As long as workers keep paying into the system, there will be funds to pay retirees. But not enough funds, unless some changes are made.

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The problem is that with people living longer and often retiring earlier, Social Security is no longer running a surplus. The ratio of workers to Social Security beneficiaries has shrunk over time, from 8.6 in 1955 to 3.3 in 1985 to 2.7 in 2023 — and it’s projected to fall to 2.3 by 2036.

So Social Security’s surplus is turning into a deficit. It’s been estimated that come 2034, there will only be enough money coming to the program (largely via taxes on workers) to pay beneficiaries 81% of what they’re owed. Making matters worse are actions by the Trump administration (via the “Big, Beautiful Bill”) that will hasten the depletion of Social Security’s surplus.

Fortunately, there are multiple ways to fix Social Security’s shortfall. For starters, the tax on our earnings for Social Security could be increased. Even a fraction of a percentage more would deliver a big infusion to Social Security’s coffers. Another fix is to raise — or eliminate — the cap on earnings that are taxed for Social Security. The cap is currently $176,100.

The bottom line is that as we plan for our retirements, we shouldn’t count on receiving the full benefits to which we’re entitled, though we can certainly hope for that. It can’t hurt to let your elected officials know that you’d like Social Security strengthened, too. And in the meantime, save and invest effectively for retirement, perhaps aiming to set up multiple income streams.