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
-
December Fed Meeting: Live Updates and CommentaryThe December Fed meeting is one of the last key economic events of 2025, with Wall Street closely watching what Chair Powell & Co. will do about interest rates.
-
This Is Why Investors Shouldn't Romanticize BitcoinInvestors should treat bitcoin as the high-risk asset it is. A look at the data indicates a small portfolio allocation for most investors would be the safest.
-
I'm a Federal Benefits Pro: I Answer These 2 Questions a LotMany federal employees ask about rolling a TSP into an IRA and parsing options for survivor benefits, both especially critical topics.
-
I'm a Financial Pro Focused on Federal Benefits: These Are the 2 Questions I Answer a Lot
Many federal employees ask about rolling a TSP into an IRA and parsing options for survivor benefits, both especially critical topics.
-
I Retired at 63 to Enjoy My Free Time but My Grown Kids Want Help With Child Care. I Love My Grandkids, but It's Too Much. What Should I Do?We asked therapists and relationship experts for advice.
-
5 RMD Mistakes That Could Cost You Big-Time: Even Seasoned Retirees Slip UpThe five biggest RMD mistakes retirees make show that tax-smart retirement planning should start well before you hit the age your first RMD is due.
-
I'm a Wealth Adviser: My 4 Guiding Principles Could Help You Plan for Retirement Whether You Have $10,000 or $10 MillionRegardless of your net worth, you deserve a detailed retirement plan backed by a solid understanding of your finances.
-
A Retirement Triple Play: These 3 Tax Breaks Could Lower Your 2026 BillGood news for older taxpayers: Standard deductions are higher, there's a temporary 'bonus deduction' for older folks, and income thresholds have been raised.
-
10 New Year's Resolutions for Retiring Next YearThese New Year's resolutions will help you retire in 2026 with confidence in your financial strategy.
-
Think You Know How to Be Happy in Retirement? These 9 Stats Might Surprise YouWhen it comes to your retirement happiness, don't believe everything you hear. We've turned to solid research for the facts on finding your bliss in retirement.
-
If You're Retired or Soon-to-Be Retired, You Won't Want to Miss Out on These 3 OBBB Tax BreaksThe OBBB offers some tax advantages that are particularly beneficial for retirees and near-retirees. But they're available for only a limited time.
