When it comes to retirement, Social Security is the safety net for millions of Americans. According to AARP, one in seven people aged 65 or older solely rely upon the government program for their income while nearly 20% rely upon it for 90% of their income. This safety net received a 2.8% cost-of-living adjustment (COLA) at the start of 2026 to help seniors keep up with rising costs.
However, many people understand that if they want to live off more than kibbles in their Golden Years, setting aside money in a 401(k) retirement plan or in an Individual Retirement Account is the smart way to ensure a comfortable retirement.
Even small contributions made regularly over time can add up to a significant sum through the power of compound interest. Contributing $1,000 a month to an account that buys the S&P 500 and earns its historic 10% returns (minus 3% for inflation) annually for 25 years would end up with $900,000 at the end. Those aren’t returns you can’t ever hope to get with Social Security.
But for a program that has existed for nearly a century, there is an awful lot of confusion about Social Security. No wonder many people throw up their hands and figure they will just wait till they’re getting ready to retire to deal with it. Yet that would be a mistake.
A surprisingly large amount of planning needs to go into ensuring that you and yours get all the benefits you’re entitled to. And though most people are familiar with the concept of survivor benefits, or the money your eligible heirs are entitled to continue receiving after you die, a Redditor on the r/SocialSecurity subreddit wondered what happens to your benefits if you die without eligible heirs.
What comes in, goes right out
Because Social Security operates on a pay-as-you-go system, the money you are required to contribute doesn’t go into an account for you. Instead, it is put into a general fund that pays out benefits to current retirees.
It’s why many people consider the program a Ponzi scheme. It constantly needs more people brought in to continue paying out benefits. When Social Security was founded in 1935, there were 150 workers per retiree. By 1950, that had fallen to only 16 workers per beneficiary. Today, that ratio has tightened to just 2.3 workers for every retiree.
Because Social Security can’t get more workers enrolled, it raises the taxes you have to pay into the system. When the program started, the tax rate was 1% on only the first $3,000 of earnings. Today, both employees and employers are taxed at a 6.2% rate on a much higher income cap, totaling 12.4% combined.
This helps explain why the 2026 Trustees Report continues to highlight the looming insolvency of the OASI trust fund. With people living longer and retiring earlier, the current funding model remains under immense pressure.
Recent Legislative Changes
A significant shift for many single workers came with the implementation of the Social Security Fairness Act. This legislation addressed the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO), which previously reduced benefits for career civil servants like teachers and police officers who also had “non-covered” pensions. For single individuals in these professions, this change restores a substantial portion of the benefits they earned throughout their careers.
Here today, gone tomorrow?
When you die with no survivors, your estate typically doesn’t get your benefits. However, there is a common misconception that “childless and single” means no one can ever benefit. If you provide at least half the support for a parent aged 62 or older, that parent may be eligible for survivor benefits on your record. Additionally, if a single person marries later in life, a spouse generally becomes eligible for survivor benefits after nine months of marriage.
I’m not a financial planner, so this is just my opinion, but the best approach is to utilize official tools through the Social Security Administration’s portal to determine your actual Primary Insurance Amount (PIA). Plan your retirement as if Social Security is a bonus rather than a primary pillar.
If the program is there when you retire, it is found money. But if it’s not, you won’t miss a step in your plan. As always, consult with a professional to get a personalized plan tailored to your specific needs.
Editor’s Note: This article has been updated to include 2026 cost-of-living adjustment data, 2027 inflation-based COLA projections, and recent legislative updates regarding the Social Security Fairness Act. Additional information regarding survivor benefit eligibility for dependent parents and late-life spouses was also added to the original text.
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