What Happens If Social Security Benefits Are Cut by 25%?
From Retirement Planning - Money Not Math by Drew Erickson
April 7, 2026 · 19 min · Season 1 · Episode 181
About this episode
Drew Erickson discusses the potential impact of a 25% cut in Social Security benefits on retirement income using a hypothetical couple as an example.
Money Not Math Episode 181 A YouTube commenter asked me what happens when the Social Security Trust Fund runs out and requested I revisit a prior retirement income example to show what retirement could look like if Social Security benefits were reduced by 25%. So in Money Not Math Episode 181, I do exactly that. Using the same hypothetical couple from Money Not Math Episode 162, with $500,000 in an IRA plus Social Security, I walk through a retirement stress test and show how a reduction in benefits can impact retirement income and overall retirement success. In this episode, I touch on how: • Asset allocation decisions • Social Security benefit and timing considerations • Retirement tax planning • Retirement income spending strategies can all impact retirement income and overall retirement success. I do not try to predict the future of Social Security. Instead, this episode is about education and planning, illustrating how different planning variables work together when assumptions change. ⚠️ This is a hypothetical example only, not legal, tax, or investment advice, and it does not include long term care planning. If you would like to ask a question, publicly or privately, or…
Topics covered
- Social Security
- retirement income
- financial planning
- asset allocation
- tax planning
Keywords
- retirement stress test
- benefit reduction
- retirement success
- spending strategies
Mentioned in this episode
Products: IRA
Books & works: Money Not Math
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