A new survey reveals that a majority of Americans aged 50 and over are concerned that Social Security funds will run out within their lifetime. The Nationwide Retirement Institute has been conducting annual polls to gauge Americans’ perceptions and worries about the Social Security system, and the latest 2023 edition shows a significant increase in concerns.
Ten years ago, 66 percent of U.S. adults above the age of 50 worried about the depletion of Social Security funds within their lifetime. Today, that figure has risen to a staggering 75 percent, indicating heightened apprehension about the state of the Social Security fund.
The survey also highlights a concerning trend: an increasing number of adults aged 50 and above rely solely on Social Security as their sole source of retirement income. In 2014, only 13 percent of respondents relied exclusively on Social Security, but that number has risen to 21 percent in 2023.
Furthermore, the survey reveals a decline in the number of Americans with additional retirement income sources such as pensions. In 2014, 48 percent of Americans had both a pension and Social Security, but that number has fallen to just 31 percent this year.
Various factors, including inflation and lower-than-expected tax revenue, contribute to the challenges faced by Social Security. Projections by the nonpartisan Committee for a Responsible Federal Budget estimate that the Social Security trust fund, comprising the Old-Age and Survivors Insurance (OASI) trust fund and the Disability Insurance (DI) trust fund, will be insolvent by 2033.
Insolvency would result in a 23 percent across-the-board benefit cut for all 70 million retirees, dependents, and survivors. The average newly retired dual-income couple could see their annual benefits slashed by over $17,000 in 2033.
The future of Social Security is now a prominent topic in the 2024 presidential campaign. Former President Donald Trump has warned against cutting Social Security benefits, while President Joe Biden has pledged to resist any Republican-led efforts to reduce payments.
During a recent Republican primary debate, candidate Nikki Haley proposed raising the retirement age and implementing benefit cuts as a potential solution. Another contender, former New Jersey Gov. Chris Christie, offered a similar idea that would involve reducing benefits for higher-earning Americans.
Some lawmakers, like Senator Chuck Grassley, suggest following the Reagan-O’Neill model from the 1980s, which involved increasing payroll taxes and gradually raising the retirement age to stabilize Social Security.
As the debate around Social Security intensifies, Americans aged 50 and over remain deeply concerned about the future of the program. With worries about its depletion mounting, finding sustainable solutions is crucial to ensure the financial stability of millions of retirees in the years to come.
