Years ago, it was common for people to work for the same company for decades, retire eventually, and collect a pension that gave them guaranteed income for the rest of their lives. Those days are long gone, though, at least within the private sector.

Now, pensions are a rarity, and most people who want retirement income outside of Social Security have to save it up themselves. That's easier said than done, given how much money it costs to function comfortably in society.

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For this reason, a lot of workers today risk entering retirement with almost non-existent nest eggs. Many current retirees are living on little to no savings, too.

For people in this boat, Social Security benefits are crucial. And millions of older Americans rely on those benefits today to stay afloat.

Unfortunately, though, Social Security is facing the real possibility of benefit cuts -- and those cuts may be coming sooner than you'd expect.

Why Social Security is looking at benefit cuts

You've probably heard that Social Security may have to cut benefits. But if you want to know the reason why, it boils down to a funding shortfall.

Social Security's main funding source is payroll taxes. But as baby boomers exit the workforce, that revenue source is going to shrink. At the same time, boomers will inevitably start claiming the Social Security benefits they're entitled to, putting a strain on the system.

Social Security has trust funds it can tap to keep up with its financial obligations as its revenue shrinks. But once those trust funds run out of money, Social Security may have to cut benefits in the absence of adequate funding.

The clock is ticking down

The Social Security Trustees put out a report every year that shares details of Social Security's finances. In its most recent report, it said that Social Security's combined trust funds are likely to be depleted in 2035.

Based on that information, current recipients could be looking at benefit cuts in about a decade from now, and future recipients may not get their Social Security benefits in full.

It's not a given that Social Security benefits will be broadly reduced. Lawmakers do have options to try to prevent that unwanted scenario. The problem is that each potential solution to benefit cuts introduces its own set of drawbacks.

Some lawmakers, for example, have proposed raising taxes to pump more money into Social Security. But the problem there is obvious.

Many working Americans are already struggling to make ends meet. Burdening them with additional taxes doesn't sound like a great thing to do.

Other lawmakers, meanwhile, have proposed raising full retirement age, which is when workers can get their Social Security benefits without a reduction. That age is currently 67 for anyone born in or after 1960.

The problem with pushing that age back, though, is that it effectively forces workers into a longer retirement -- when that's even an option. As it is, some people struggle to stay in the labor force until 67 due to health issues or age discrimination. Delaying full retirement age only compounds these issues.

For this reason, it's important to prepare for Social Security cuts, even though they aren't set in stone. For current retirees, that could mean cutting spending and turning to the gig economy or part-time work for income. For current workers, it means prioritizing savings, despite that being a tough thing to do.

But no matter which category you fall into, the time to start getting ready for Social Security cuts is now.

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The past few weeks have been a rollercoaster ride for investors. Stock values have plunged, causing many people to panic. And with a lot of economic uncertainty ahead, there's no telling how long it will take the market to recover from its recent fall.

You may be worried about the impact of recent stock market volatility on your retirement savings -- to the point where you're questioning whether your nest egg belongs in the stock market at all. It's an important question to be asking, and here's how to navigate it.

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When retirement is far away

It can be unsettling to see the value of your stock portfolio take a dive following a market downturn. But if you're many years away from retirement, there's really no reason to let the events of the past few weeks rattle you.

This recent bout of stock market volatility is not the first of its kind. But when you have time to ride out a storm, there's less to worry about.

Furthermore, if you're tempted to pull your retirement savings out of the stock market, don't. You need stocks in your portfolio to lend to steady growth through the years. And if you invest your retirement savings too conservatively because you're scared about market turbulence, you'll risk ending up with an income shortfall on your hands.

You should know, in fact, that if you're many years away from retirement, now is not only a good time to stay invested in the stock market, but to potentially buy more stocks when they're on sale. Before you add stocks to your portfolio, though, take a close look at its composition. You don't want to overload on one particular market segment, so be careful with the stocks you choose to buy.

When retirement is near

The advice to sit back, relax, and wait things out isn't necessarily applicable to you if you're a year away from retirement and your portfolio has just taken a massive hit. In that case, it's important to review your asset allocation immediately and make changes as necessary to ensure that you're not overly invested in stocks.

If you had 50% of your portfolio or less invested in the stock market before things took a negative turn, then you may not be sitting on such drastic losses now -- which means you may be just fine to move forward with your original retirement plans. If not, you may need to be willing to adjust your plans to account for recent portfolio changes.

Furthermore, if you're already pretty invested in stocks, you may not want to add new ones to your portfolio, despite the fact that stocks are on sale. A better bet may be to put new money into bonds, which are more stable and can generate income for your portfolio.

Although stock market volatility is nothing new, it can still be a daunting thing to deal with. And after the events of the past few weeks, you may be thinking of pulling out of the stock market for good. But if your investing strategy was a solid one from the start, then there's no need to abandon it just because the market is going through a rough patch.

The $22,924 Social Security bonus most retirees completely overlook

If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income.

One easy trick could pay you as much as $22,924 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Join Stock Advisor to learn more about these strategies.

View the "Social Security secrets" »

The Motley Fool has a disclosure policy.