Social Security is facing a funding crisis. The entitlement program is expected to run short on funds in 2035, one year later than previously projected, largely due to stronger economic growth. American Enterprise Institute Senior Fellow Andrew Biggs joins Wealth! to explain what this projection means for your retirement planning.

Biggs warns that if nothing is done to address the funding issues facing the federal government's largest spending program, benefits would have to be slashed across the board by 17%. "If I were somebody saving for retirement — and I am — I would save a little bit more today because you don't know exactly how the government is going to resolve that funding gap 10 years from now," he tells Yahoo Finance's Brad Smith.

On the private side, he adds that with more people utilizing employer-sponsored retirement programs, retiree incomes are at record levels. "The private side of the retirement savings story is a really unrecognized success story," Biggs explains, "But we still have to get on top of Social Security, and that's a political challenge, not so much as a financial or retirement planning one."

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This post was written by Melanie Riehl