Seven in 10 Americans worry that Social Security won’t be there for them when they retire, according to new survey from the Transamerica Center for Retirement Studies (TCRS).
TCRS is a division of Transamerica Institute (TI), a nonprofit, private operating foundation, and conducts one of the largest and longest-running annual retirement surveys of its kind.
For generations, Social Security, which celebrated its 90th anniversary on August 14, has formed the bedrock of retirement income for tens of millions of Americans, and also pays out benefits to disabled people and survivors of deceased workers. However, despite its enduring popularity and importance, it faces a looming insolvency crisis that lawmakers have less than 10 years to solve.
The survey from TCRS, which polled 10,009 adults above the age of 18 between September 11 and October 17, 2024, found that among non-retirees, 71 percent agreed with the statement: “I am concerned that when I am ready to retire, Social Security will not be there for me.”
Almost nine in 10 Americans (87 percent) have one or more greatest retirement fears, ranging from health to financial. The top two greatest fears are declining health that would require long-term care (39 percent) followed by Social Security being reduced or ceasing to exist in the future (37 percent).
According to the latest report from the Social Security Trustees, the program’s two trust funds—the Old-Age and Survivors Insurance (OASI) and Disability Insurance (DI) funds—are projected to reach insolvency by 2034. At that point, benefits would be funded solely through incoming payroll taxes, triggering an automatic cut of around 21 percent unless Congress takes action.
While several options have been tabled by lawmakers to fix the issue, such as The Fair Share Act and raising the retirement age, no meaningful progress has been made. Doug Carey, founder of WealthTrace and a chartered financial planner, told Newsweek that the main driver of fears around Social Security’s longevity is this political inaction.
“I believe it’s the political climate and the lack of action over many administrations,” he said. “Most politicians do not want to touch benefits since they believe it will only hurt their reputation and reelection chances now. That is why this keeps getting pushed into the future until it simply has to be addressed.”
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The study also revealed Americans are concerned about seeing their personal savings through their post-working years. Sixty-three percent of Americans said they either believe they won’t save enough to meet their needs by the time they retire or, if already retired, they failed to save enough—28 percent “strongly agree” and 35 percent “somewhat agree” with that statement.
And for nearly a third of Americans—32 percent—Social Security is expected to be their primary source of retirement income. That compares with 29 percent who expect to rely primarily on retirement accounts, 12 percent on other savings and investments, and 11 percent on continued work. Only 9 percent see a company-funded pension as their main income source.
The survey also showed that reliance on Social Security is even greater among retired women with six in 10 women retirees (59 percent) indicating it is their primary source of income, compared with 47 percent of men retirees. For those not yet retired, 29 percent of women and 22 percent of men said Social Security was their expected primary source of retirement income.
Carey added that many Americans are already adjusting their retirement plans based on the assumption of reduced benefits.
“What many people are doing is simply assuming their benefits will be cut by anywhere from 25 percent to 50 percent. They can then plan accordingly by retiring later, saving more, or changing their planned spending in retirement,” he said. Some, Carey noted, choose to claim benefits early at age 62 to “lock in” payments, believing they are less likely to be reduced once started.
Jackson Ruggiero, co-founder of DisabilityGuidance.org, told Newsweek that the poll’s findings are unsurprising.
“The program is facing real financial challenges, but just as importantly, people don’t trust Congress to fix it in time,” he said. “Because of this uncertainty, many people are changing how they plan for retirement. Younger workers especially are focusing more on personal savings through 401(k)s and IRAs, and some are assuming they’ll get little or nothing from Social Security. That’s understandable, but also a bit extreme.”
Looking forward, Ruggiero advised a balanced approach for those concerned about their retirement savings and the future of Social Security.
“Plan like your benefits might be reduced, not gone. Save what you can now, take advantage of employer retirement plans, and if possible, delay taking Social Security to get a bigger monthly check,” he said.
Both experts agreed on one point—Congress is moving too slowly to fix the looming insolvency dilemma.
“They are doing nothing, and I predict they won’t do anything until the year where it’s clear Social Security benefits will have to be cut. Currently that is 2033,” Carey warned.
This is not the first time Social Security has faced a funding cliff. In the early 1980s, the trust funds were similarly close to depletion. Lawmakers responded with reforms that included faster payroll tax increases, a gradual rise in the retirement age, and taxation of some Social Security benefits.
“Social Security has served as the cornerstone of retirement income since its establishment nine decades ago. It provides millions of older Americans with guaranteed income, so that they can retire with greater financial security,” Catherine Collinson, CEO and president of Transamerica Institute, said. “With the estimated depletion of the Social Security trust funds looming large, now is the time for policymakers to identify reforms that can help ensure the program’s sustainability for the next 90 years.”