What Gen Z Needs to Know About Social Security’s Future and Their Retirement Income

According to a survey by Western & Southern Financial Group, a majority of Generation Z (those born in the years 1997 to 2012) either aren’t confident about their ability to save for retirement (41%) or are unsure (19%). And only half (51%) of Gen Z expects to rely on Social Security as their main income in retirement, the survey found. That’s the lowest of any generation.

Will Social Security be around for Gen Z? And if it isn’t going to fund their retirement, what is?

Can Gen Z Expect Social Security Benefits?

The short answer is yes. The Social Security trust funds are expected to continue paying retirement benefits into the future. However, what those benefits will look like and what changes might be made to the Social Security system before Gen Z retires are unknown.

A report released by the Social Security Administration (SSA) in June 2025 predicted that the trust fund currently used to pay Social Security benefits will be depleted in 2033. After 2034, the report predicts, the money paid into the trust fund will be enough to cover 81% of scheduled benefits.

Because benefits paid to retirees are funded by current workers, the trust funds’ insolvency is primarily due to the increase in retirees compared to workers, as well as the growing life expectancy of Baby Boomers compared to previous generations.

This trend has been apparent for decades.

Back in 2000, a report released by the SSA predicted long-term financial challenges for the Social Security program by noting that in 1946, 11 million Americans were age 65 or older. That number had grown to 35 million in 2000 and is projected to reach 70 million by 2030.

If this trend continues while the Social Security program remains unchanged, an even smaller percentage of planned benefits might be available to Gen Z in retirement.

Saving Social Security: The Key Changes That Could Keep It Alive

If certain changes were made to the Social Security program, the program’s spending and revenue could be brought back in line with each other.

The Committee for a Responsible Federal Budget, for example, features an interactive tool on its website known as The Reformer, which projects future spending and revenue for Social Security based on potential policy changes.

If, for example, benefit growth were slowed for the top 50% of earners and the maximum amount of wages subject to Social Security tax was adjusted so that all wages over $400,000 were taxed, then, The Reformer projects, Social Security spending would outpace revenues by less than a percentage point between 2026 and 2086, and after 2086, revenues would outpace spending.

Other potential policy changes—such as raising the retirement age, modifying cost-of-living adjustments, and applying payroll taxes to additional workers or job benefits—could increase projected revenues or decrease projected spending even more substantially.

However, these changes would still likely mean that future retirees won’t be able to fund their retirement entirely, or even mostly, through Social Security benefits. As a result, Gen Z will need other plans in place to build an income for their nonworking years.

How to Build Retirement Savings Without Relying on Social Security

Americans have needed to fund their own retirement for several decades. Defined-contribution retirement plans, such as 401(k)s, overtook defined-benefit plans, such as pensions, in the early 1990s. Since then, defined-contribution plans have become the norm in American workplaces, shifting the responsibility for saving for retirement to workers, rather than their employers. Nearly half of Americans, however, don’t have access to retirement plans through their employer.

Still, retirement for even the oldest Zoomers is almost 40 years away. That’s plenty of time to plan and save for retirement, whatever it looks like when they get there. Here’s how members of Gen Z can take advantage of that time.

Maximize Contributions

Maximizing contributions to a tax-advantaged retirement plan should be high on your to-do list, according to financial advisor Jamie Kertis, CPFA, of EverThrive Financial Group.

If you have access to a plan through work, try to contribute enough to get your employer’s matching contribution. If you don’t, open an individual retirement account (IRA) or a solo 401(k) and start saving on your own. In 2025, Gen Z can contribute up to $23,500 to a 401(k) and $7,000 to an IRA.

Consider Alternative Income Sources

Financial advisor Melissa Joy, president of Pearl Planning, said that many of her clients who are worried about the future of Social Security feel reassured when they purchase an annuity for their retirement portfolio. These insurance products pay a set income over time, typically during retirement.

Joy recommended investors use annuities as part of a broader retirement plan because they can be complex, especially when it comes to taxes. Many also come with additional fees or charges.

“They provide a reliable stream of income, which can be comforting in retirement, but the costs can be steep,” she said.

Real estate can provide another kind of income in retirement. Options include owning income-producing properties, investing in real estate investment trusts (REITs), and participating in real estate crowdfunding. Adding real estate to your retirement plan diversifies your sources of income, which can protect you against unpredictable swings in the economy or market. Property values also tend to increase over time. The average sales price of a home in the United States was $512,800 in 2025, compared to $19,300 in 1963. Because property values and rents rise as prices rise, owning or investing in real estate can provide a hedge against inflation over time.

Be Ready to Pivot

Though retirement is supposed to be a time when you stop working, nearly 40% of Baby Boomers expect a side hustle to be their main source of income in retirement. Members of Gen Z may also need to pivot if retirement doesn’t look quite like what they expected once they get there. Building a plan is important, but being able to adjust that plan as you approach or begin retirement will be what keeps you on track.

“Retirement planning should get into the weeds of where your income is coming at specific times,” Joy said. “It won’t be the same thing every year.”

The Bottom Line

Though many members of Gen Z are skeptical that they will receive Social Security in retirement, the program will likely still be paying benefits when they need it to. Exactly what it will look like, however, is a moving target.

Fortunately, Gen Z still has many years to prepare for retirement. Financial advisors agree that it’s important to begin saving early. Even if retirement looks different for Gen Z than for previous generations, they’ll be more able to create a retirement they enjoy if they start working toward it now.