Social Security Isn't Going Broke. But You May Want to Pretend It Is for the Sake of a Comfortable Retirement.

Social Security is not on the verge of going bankrupt. Don't let anyone tell you otherwise.

It's true that the program is facing some serious financial shortcomings. As baby boomers retire in droves, an uptick in benefit claims coupled with a decline in payroll tax revenue will put Social Security in a position where it's not expected to be able to keep up with scheduled benefits.

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Thankfully, Social Security has trust funds it can draw down to continue paying benefits in full -- but only until those funds run dry. The latest estimate from the program's Trustees has Social Security's combined trust funds being depleted by 2035. So as of now, that's when benefit cuts have the potential to happen. That timeline, however, could change in the coming years, so that's something to be mindful of.

But benefit cuts really are the worst-case scenario in the context of Social Security, so there's no need to fret that you won't see a dime out of the program once you're eligible to sign up. Still, it's not a bad idea to tell yourself that Social Security is going away completely. It could be just the motivation you need to boost your savings. And that way, you might get a lot more enjoyment out of whatever Social Security income you are able to collect.

You should plan to live primarily off of your savings

A good number of retirees today get most of their income from Social Security . That's a problem.

The average retired worker only collects about $1,918 per month. Given what living costs look like today, that's not a lot of income.

The last thing you want after a lifetime of hard work is to struggle to keep up with your living costs in retirement. So given that Social Security may very well be cutting benefits, a smart bet is to plan to live mostly off of the savings you build.

In fact, you should take that notion a step further and aim to save enough to not need Social Security at all for essential expenses in retirement. That way, benefit cuts don't have to be a stressful thing. You also won't have to spin your wheels worrying whether your annual cost-of-living adjustments will actually keep up with inflation or not.

What does it take to build a large enough nest egg to be completely unreliant on Social Security? Well, that depends on your future income needs.

But let's assume that $2 million should cut it. If you sock away $500 a month in a 401(k) or IRA over 40 years, and your portfolio generates an average annual 9% return, which is just below the stock market's average, you could end up with that $2 million to your name.

Set yourself up to enjoy Social Security -- not depend on it

Many retirees today need their Social Security income to survive. A better bet for you is to save enough so those benefits aren't needed for essential bills like housing, utilities, healthcare, and food. That way, you can use those benefits for fun purposes, like traveling and exploring different hobbies, and activities you didn't have time for while you were working.

There's no need to worry that Social Security is going broke and that you therefore won't see any income out of it once your career wraps up. But if you were to convince yourself that that's the case, it also wouldn't be a bad thing at all if it gets you to focus on building your long-term savings.

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