Social Security has faced the possibility of benefit cuts in the past, but to date, they’ve never happened. However, just because lawmakers have managed to prevent Social Security cuts in the past doesn’t mean they’re guaranteed to save the program from that fate, given its current financial crisis.

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In the coming years, Social Security expects to owe more in scheduled benefits than it collects in payroll tax revenue as baby boomers stage a massive exodus from the workforce. Thankfully, Social Security has trust funds to tap to make up that shortfall — at least for the time being.

Once those trust funds are emptied, Social Security may have no choice but to cut benefits universally. The most recent Social Security Trustees Report puts the timing of those benefit cuts at 2035, which is when the program’s combined trust funds are expected to be depleted.

Clearly, that’s not great news for current or future retirees. But it also doesn’t mean all is lost. If you prepare now, you can avoid a situation where Social Security cuts wreak havoc on your retirement.

What to do if you’re still working

If you’re still in the midst of your career, you have a huge advantage over current retirees in the context of Social Security’s financial crisis. You may have several decades to boost your savings to make up for future cuts, so that’s something to act on right away.

You should not only increase your savings rate immediately but also plan to make catch-up contributions in your 401(k) or IRA once you reach the age of 50. Also, make sure your savings are invested appropriately. Harnessing the power of the stock market to grow your nest egg could leave you with a lot more money to work with in retirement.

At the same time, you may want to reconsider some of your retirement plans. If your initial thought was to retire at age 62 and claim Social Security on the spot, you may want to push yourself to work a bit longer.

Age 62 is the earliest point to sign up for Social Security, and you’ll reduce your monthly payments tremendously by not waiting until full retirement age. Given the possibility of benefit cuts, working into your late 60s could be a much smarter bet.

What to do if you’re already retired

If you’re retired, you may not have as much of an opportunity as current workers to build savings in anticipation of Social Security cuts. But one thing you can do is join the gig economy to give your income a boost. Not only might that give you more breathing room from month to month, but you might also manage to build up a small cushion you can dip into later if Social Security cuts do arrive.

You may also want to consider relocating to a part of the country where Social Security benefits go further in general. It’s not easy to adjust to new surroundings and give up a local support network. But if you move to a state that’s less expensive for retirees, you may find that you’re able to get by even if your Social Security checks eventually shrink.

The idea of Social Security cuts is scary — there’s no getting around that. But if you take steps to prepare for them, you may find that you’re able to manage OK if a broad reduction in benefits ends up happening after all.

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