by Washington, D.C. – More than half of Social Security recipients say they wouldn’t survive financially if they missed even half of a monthly payment, according to a recent Nationwide Financial Survey.
The survey highlights concerns over the Social Security Administration’s (SSA) long-term funding and the potential impact of proposed benefit cuts.
The Stakes for Retirees
Social Security provides monthly benefits to over 70 million Americans, serving as a critical source of income for retirees, disabled individuals, and survivors. Without congressional action, the SSA could run out of funds for full payments in the 2030s, raising concerns about future financial security.
Survey Reveals Widespread Worry
The survey, which collected responses from more than 1,800 U.S. adults, found that:
- 14% of recipients strongly agreed they couldn’t survive a missed payment.
- 30% somewhat agreed they would struggle.
- 74% expressed worry that Social Security could run out in their lifetime.
- 83% were concerned about the SSA’s long-term viability.
By 2034, the SSA faces an automatic 19% cut to benefits unless funding is secured, which would amount to a loss of around $4,573 annually per senior.
Why Benefits May Decline
The cuts are driven by an aging population as baby boomers retire and fewer younger workers pay into the system. Under current projections, the SSA could pay only about 80% of scheduled benefits without reforms.
A Cato Institute report warns that younger workers may face lifetime reductions equivalent to $110,000 due to higher taxes or lower benefits.
Looking Ahead
Financial experts warn that retirees’ and future retirees’ security depends heavily on the solvency of Social Security amid ongoing inflation and economic uncertainty.
“In our current economic environment, it’s harder for most to save for the future, and their financial stability will be closely tied to Social Security’s viability in the decades ahead,” said survey analyst Beene.
