Will Social Security Be There When You Need It? Many People Worry It Won’t Be
The majority of Americans surveyed expect to rely on Social Security benefits to help cover everyday expenses in retirement, yet 73% worry they won’t get them.
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."
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
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.
Americans expect to be able to rely on Social Security
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.
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.
Will Social Security be there when you need it?
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.
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.
Related Content
-
Turning 65 in 2026? Here Is Exactly How to Sign Up for MedicareWhether you’re months away from your 65th birthday or plan to work past retirement age, here are the steps to secure your Medicare coverage and avoid costly mistakes.
-
A Free Tax Filing Option Just Disappeared: Here's What That Means for YouTax Filing Tax season officially opens on January 26. But you'll have one less way to submit your tax return for free. Here's what you need to know.
-
Georgia Income Tax Elimination: What the 2026 Tax Cuts Mean for YouState Tax Georgia lawmakers aim to axe the state income tax by 2032. We break down the $16 billion fiscal shift, the fate of the state surplus, and which tax breaks are on the chopping block.
-
Turning 65 in 2026? Here Is Exactly How to Sign Up for Medicare
Whether you’re months away from your 65th birthday or plan to work past retirement age, here are the steps to secure your Medicare coverage and avoid costly mistakes.
-
I'm 61 and Want a Divorce, but I Worry About My Finances. Should We Live Separately but Stay Married?We asked Certified Divorce Financial Analysts for advice.
-
Is a Caregiving Strategy — for Yourself and Others — Missing From Your Retirement Plan?Millions of people over 65 care for grandkids, adult kids or aging parents and will also need care themselves. Building a caregiving strategy is crucial.
-
6 Financially Savvy Power Moves for Women in 2026 (Prepare to Be in Charge!)Don't let the day-to-day get in the way of long-term financial planning. Here's how to get organized — including a reminder to dream big about your future.
-
How to Use Your Health Savings Account in RetirementStrategic saving and investing of HSA funds during your working years can unlock the full potential of these accounts to cover healthcare costs and more in retirement.
-
I'm a Real Estate Expert: 2026 Marks a Seismic Shift in Tax Rules, and Investors Could Reap Millions in RewardsThree major tax strategies will align in 2026, creating unique opportunities for real estate investors to significantly grow their wealth. Here's how it works.
-
When Can Tax Planning Be an Act of Love? This Family Found OutHow can you give stock worth millions to a loved one without giving them a huge capital gains tax bill? This family's financial adviser provided the answer.
-
Who Said That? Match the US President to the QuotationWho better to give advice on aging, retirement and finances than a U.S. president? Our short quiz will determine whether you're a history buff or buffoon.
