Angelica Roxas

The retiree-and-survivor trust fund is projected to exhaust reserves by 2033, but benefits would continue through incoming program revenue, not disappear entirely.
If reserves run out, scheduled payouts, including cost-of-living adjustments, may require cuts of up to ~23% to maintain long-term payments for beneficiaries.
Temporary tax deductions began for 2025–2028, including senior, tip, and overtime breaks, potentially reducing earned income subject to payroll tax during those years.
Program actuaries estimated the tax law could cost the retirement program $168.6B over 10 yr, widening its existing long-term funding gap further.
Actuaries projected the reserve-depletion timeline could move to late 2032, making early planning conversations more important for retirees, near-retirees, and households watching benefits.

Retirement Planning Focus: Cuts May Arrive Earlier

Advisors called ages 69 to 73 a critical retirement pivot, when tax strategy, income planning, risk shifts, and advice choices can shape savings longevity.
This window began before required withdrawals at 73, giving retirees time to reduce future tax pain before traditional IRA and 401(k) distributions became mandatory.
Planned Roth conversions stood out because retirees without paychecks could convert enough to stay in a familiar tax bracket while reshaping future withdrawals.
Waiting until 73 was described as the costliest mistake. Larger taxable withdrawals can make Social Security benefits taxable and lift Medicare premiums by thousands yearly.
Roth planning also carried legacy benefits. Surviving spouses avoided required withdrawal income, while heirs inheriting traditional accounts generally had to empty them within 10 yr.
Advisors urged retirees to spread conversions across several years and choose a certified financial planner who is legally bound to act as a fiduciary.