Nearly 3 in 4 Americans fear Social Security won't be available when they retire, poll finds
Social security benefits to rise 2.5% in 2025
Social Security recipients will receive a 2.5% increase in their monthly checks in 2025. Analysts had predicted a 2.5% bump for 2025, which is smaller than increases in the previous two years and reflects moderating inflation. Recipients received a 3.2% increase in their benefits in 2024, after a historically large 8.7% benefit increase in 2023, brought on by record 40-year-high inflation.
LOS ANGELES - A new Bankrate survey shows that while 53% of Americans expect to depend on Social Security to cover essential expenses during retirement, a staggering 73% are worried the program won’t deliver promised benefits when they reach retirement age.
The anxiety comes amid warnings that the Social Security trust fund could be depleted by 2033. Without Congressional action, benefits may be cut by 21%, according to a federal report cited by NPR.
"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’s Senior Economic Analyst.
Current retirees heavily depend on benefits
For current retirees, Social Security remains a lifeline, with 77% relying on it to cover necessary expenses. Only 15% of retirees say they’re not dependent on the program.
Interestingly, more women (82%) than men (72%) rely on Social Security in retirement. This contrasts with non-retired men (57%) being more likely than women (50%) to expect to rely on the program in the future.
Generational concerns
Younger generations are less likely to expect reliance on Social Security but remain deeply concerned about its future:
- Gen Zers (18-27): 62% are concerned, and 46% expect to rely on benefits.
- Millennials (28-43): 69% are concerned, and 48% expect to rely on benefits.
- Gen Xers (44-59): 82% are concerned, and 56% expect to rely on benefits.
- Baby Boomers (60-78): 81% are concerned, and 69% expect to rely on benefits.
Gen Xers, many of whom will retire within the next decade, express the greatest concern about the program's solvency.
Expert on retirement savings
Indira Venkat serves as the Senior Vice President of Research at AARP, she joins LiveNOW from FOX to discuss a recent survey that found more than 20% of adults ages 50 and older have no retirement savings. Venkat explains how Americans are worried about covering basic expenses.
The future of Social Security
The projected funding shortfall raises pressing questions about the program's sustainability. Experts suggest solutions such as raising taxes, cutting benefits, or a combination of both, but Congressional action remains elusive.
"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," Hamrick said.
Preparing for retirement
Experts recommend supplementing Social Security with other savings tools like 401(k)s, IRAs, or pensions. The following are the updated 2025 contribution limits for these accounts, providing opportunities to save more:
401(k) and 403(b):
- Contribution limit: $23,500
- Catch-up limit (ages 50+): $31,000
- Catch-up limit (ages 60-63): $34,750
IRA:
- Contribution limit: $7,000
- Catch-up limit (ages 50+): $8,000
"It is prudent to regularly review retirement savings and the related investment strategy, while utilizing online retirement calculators, to ensure one is on track to meet those goals," said Mark Hamrick, Bankrate Senior Economic Analyst.
Additionally, Americans can use the Social Security Administration’s retirement plan tool to estimate their potential benefits based on their expected retirement age.
The source
Information for this article was sourced from Bankrate, NPR, the Social Security Administration, and previous FOX reporting.