Will Social Security Be There When You Need It? Many People Worry It Won’t Be

A social security card inside a combination lock.

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The majority of Americans say that they expect to rely on Social Security benefits once they retire, but that they are afraid benefits won't be there for them, according to a new survey.

53% of people expect to look to Social Security benefits to pay their everyday expenses in retirement, while 73% fear benefits won't be there for them, according to Bankrate’s new Social Security Survey

Approximately 72.8 million people received some Social Security benefits as of October 2024. A 2024 federal report states that the trust fund is projected to be "depleted" by 2033, at which point. income would be sufficient to pay 79% of expected benefits. However noting that the program is on track to become "depleted" is not the same as saying that the program is "going bankrupt."

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Earlier this year, it was projected that unless Congressional lawmakers intervene, social security benefits may end up 21% smaller than expected. However, that number was later updated to 23% by the Congressional Budget Office (CBO)

“Social Security provides a vital backstop for current and prospective retirees, yet the financial outlook for this popular program is cloudy," said Mark Hamrick, Bankrate Senior Economic Analyst.

The majority of people nearing retirement say they will rely on Social Security benefits to pay necessary expenses when they retire, including 69% of unretired baby boomers and 56% of Gen Xers. That compares to only 48% of millennials and 46% percent of Gen Zers who expect to rely on Social Security benefits when they retire.

No matter the age, 57% of men, compared to 50% of women, expect to rely on Social Security benefits once they retire.

Only 14% of non-retired Americans say they won’t rely at all on Social Security benefits to pay necessary expenses when they retire.

We asked: Looking to the future, how reliant, if at all, do you expect to be on Social Security benefits to pay necessary expenses once you retire?

Over three-quarters, or 77% of current retirees, count on Social Security to pay necessary expenses, while 15% say they don’t count on Social Security and 2% don’t know.

Although it's very unlikely that Social Security will become insolvent, many fear their benefits will be cut. The Bankrate survey asked respondents how concerned they are, if at all, that promised benefits won't be paid to them when they retire. Overall, 43% were very concerned. Of those already retired, 49% were very concerned. Only 42% of non-retired adults had the same concerns.

How concerned, if at all, are you that promised benefits won't be paid (to you) upon retirement age?

While the future of Social Security is more worrisome to people who count on it as their main source of income, Congress could take action and increase funding to Social Security by raising taxes, reducing retirement benefits, or both, according to NPR. Yet the clock is ticking. According to the Urban Institute, 1 in 5 Americans will be 65 or older by 2040.

“There’s a vast divide between Americans’ concern about the looming Social Security funding shortfall and the lack of serious and thorough conversation among elected officials about what to do about it,” Bankrate's Mark Hamrick says. “The result is that the American public’s financial well-being is not being tended to.”

Bottom line

While taking Social Security early may benefit people with health issues or those facing financial emergencies, a fear that Social Security will disappear at some time in the future may not justify the 25% smaller payout if your full retirement age is 66 or a 30% smaller payout if your full retirement age is 67.

It's important to understand that there are pros and cons of claiming early benefits. However, the choice is yours. There’s really no right answer when it comes to the best age to claim Social Security as each person's needs are different.

While the uncertainty surrounding the longevity of Social Security benefits is likely to persist, you can focus on the parts of your retirement that you can control: maximizing your savings, 401(k), IRA and/or other retirement accounts. Feeling a little overwhelmed? Talk to a financial planner. They can help you determine your best options based on your unique situation.

For the past 18+ years, Kathryn has highlighted the humanity in personal finance by shaping stories that identify the opportunities and obstacles in managing a person's finances. All the same, she’ll jump on other equally important topics if needed. Kathryn graduated with a degree in Journalism and lives in Duluth, Minnesota. She joined Kiplinger in 2023 as a contributor.