ROCHESTER, N.Y. — The Social Security Trust Fund is projected to run out of money in six years, prompting many Americans to rethink their retirement plans.
As many as 70% of people over 50 say they plan to delay retirement. The Social Security Administration predicts the trust fund will run dry in 2032, leading to a 22% reduction in Social Security checks.
Retirees and those nearing retirement are facing what News10 NBC Consumer Investigative Reporter Deanna Dewberry has dubbed, “decumulation desperation.” Decumulation is the opposite of what workers do throughout their careers — instead of accumulating wealth, retirees must spend the nest egg to support themselves for the rest of their lives.
“Six in 10 people associate retirement with enjoyment and freedom yet only 25% of people feel comfortable seeing their assets decline as they enter retirement,” Terri Fiedler of Corebridge Financial said.
Healthcare costs are adding to the financial pressure. In 2025, healthcare costs increased by 6.7%, twice the rate of inflation.
However, planning can ease those concerns. “What we’ve seen though is that those people who have actually taken time to map out a plan for how they’re going to spend their assets in retirement, how they’re going to decumulate, are much more comfortable and confident,” said Jean Chatzky, journalist and author of The Forever Paycheck and a number of other personal finance books. said.
So, in uncertain economic times, does The Rule of 4 still apply? The rule is retirement guideline that states retirees should withdraw 4% of their entire retirement income in the first year, then adjust for inflation each year after that. For example, if retirement savings and Social Security total $1 million, 4% of that is $40,000 in the first year. You would then adjust your withdrawal each year according to the rate of inflation.
“Rules like the 4% rule are really guidelines and there’s no one size fits all approach because all of our retirements are very personal and very complex,” Fiedler said.
A personalized plan is key to ensuring financial security in retirement. While retirees have no control over what the government does with Social Security, they have some control over when they begin collecting benefits. Full retirement age is 67, but benefits max out at 70. If someone waits until 70 to begin collecting, their benefit will increase by about 8% per year.
Financial experts recommend seeking professional advice when planning for retirement. In addition to Corebridge Financial, Fidelity and Invessent can provide experts and guidance. The owner of Invessent, Jarrett Felton, is frequently featured as a financial advisor on News10 NBC.
Consumer Alert: The Social Security Trust fund could run dry in 6 years. Here’s what you need to know WHEC.com.
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