What You Should Actually Know About Social Security
Social Security is one of the most misunderstood parts of retirement planning. You’ve probably seen headlines saying the system is underfunded or might run out. Maybe you’ve even worried about whether it’ll be around when you retire.
That’s a fair concern—but it’s not the most important one for people in their 30s and 40s to focus on. Here’s why.
A Quick History of Social Security
Social Security was signed into law in 1935, during the Great Depression. Its goal was to provide economic security for older Americans—if they lived long enough to collect.
At the time:
- The average life expectancy was 61 years
- Monthly benefits didn’t exist yet—people received a lump sum
- The first monthly check wasn’t sent until 1940
- The first recipient got $22.54 per month—and ended up collecting over $22,000 after living to 100
It wasn’t designed to fund a 30-year retirement. It was a backstop for a smaller segment of the population.
What Social Security Was Supposed to Be
When Social Security launched in 1935, it was meant to provide income for people who outlived their life expectancy. At the time, the average American lived to about 65—and that was also the age when you could start collecting benefits.
Today, people routinely live well into their 80s and beyond. But the system hasn’t fully adjusted to reflect that shift. What was once designed as a backstop for a small portion of the population has become something people expect to live on for decades.
Is Social Security Going Away?
Short answer: probably not.
The Social Security Trust Fund does face funding issues if no changes are made. But historically, lawmakers have adjusted the system instead of letting it fail. No one wants to be the politician who “ended” Social Security.
Possible future tweaks might include:
- Raising the full retirement age
- Increasing payroll taxes
- Changing benefit formulas for high-income earners
But eliminating the program altogether? Highly unlikely.
Why You Shouldn’t Rely on Social Security Anyway
If you’re a high-income professional, especially in your 30s or 40s, your financial security shouldn’t hinge on whether Social Security exists in its current form.
Instead of focusing on a system you can’t control, prioritize what you can control:
- Saving and investing consistently
- Understanding your equity comp and employee benefits
- Building tax-efficient income strategies
- Diversifying beyond employer stock or bonuses
Social Security might be part of the equation one day—but it’s not the plan. It’s just a variable.
How to Plan Smarter
For high-earning music executives and professionals, the real planning happens elsewhere. Think of Social Security as a future bonus, not a foundation.
Need help figuring out how it fits into your long-term strategy? That’s part of what we cover in financial planning at Motif Planning. Whether it’s maximizing your current income or preparing for future transitions, we build a plan that doesn’t rely on systems outside your control.
Want to learn more?
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I’m Spenser Liszt, a CERTIFIED FINANCIAL PLANNER® professional helping high-earning music executives make smart, confident decisions with their money.
I provide straightforward, flat-fee, advice-only financial planning—no sales, commissions, or asset management. I don’t take custody of your investments; I show you how to manage them yourself with a clear, structured plan.
If you’re a music executive and want a thoughtful, structured approach to your finances, let’s talk.
