Most Americans Concerned About Social Security’s Future

A recent survey from the Nationwide Retirement Institute reveals that 79% of U.S. adults believe the Social Security program needs to change, with 49% strongly agreeing and 30% somewhat agreeing.

Why it matters: The findings underscore widespread concern about the program’s sustainability and the lack of political action to address its issues.

The details:

• 72% of respondents worry that Social Security might run out of funding in their lifetimes, with this concern being more prevalent among women (75%) than men (69%).
• Only 23% of respondents believed they would not receive any Social Security benefits they have earned, with a stark generational divide on this belief: 14% of Baby Boomers, 41% of Gen Zers, 36% of Millennials, and 26% of Gen Xers.
• 47% of respondents suggested raising taxes on higher earners to increase the program’s funding, while 40% supported reducing the taxation of the benefits themselves, and 34% believed that employers should bear a higher tax burden.

The survey also found that 69% of respondents will factor in a candidate’s stance on Social Security reform as they proceed to the polls in the 2024 presidential election.

Proposed changes:

• Raising the minimum eligibility age from 62 to 64 for future retirees aged 50 or younger was most popular, garnering support from 66% of respondents, with bipartisan support from 68% of Democrats and 69% of Republicans.
• 51% back increasing the full retirement age from 67 to 69 for the same group, with 50% of Democrats and 51% of Republicans favoring this change.

Knowledge gap: Despite the desire for reform, many Americans appear in the dark on how to maximize their benefits.

• 51% of respondents are unsure how to maximize their benefits, and one-third are uncertain about the eligibility age for full retirement benefits.
• The Social Security knowledge gap has widened since 2015, with awareness about various benefits dropping significantly.

“Given Americans’ increasing worries about the future of Social Security, it is concerning to see that many have yet to take proactive steps to secure their retirement,” said Tina Ambrozy, senior vice president of Strategic Customer Solutions at Nationwide.

Full story

A recent survey from the Nationwide Retirement Institute reveals that 79% of U.S. adults believe the Social Security program needs to change. The survey, now in its 11th edition, highlights growing concerns about the program’s sustainability and the lack of political action to address its issues. The findings show that 49% of respondents strongly agree and 30% somewhat agree that Social Security needs an overhaul.

Additionally, 72% of respondents worry that the program might run out of funding in their lifetimes, with women (75%) expressing more concern than men (69%). Despite these concerns, only 23% of respondents believed they would not receive any Social Security benefits they have earned. However, there is a stark generational divide on this belief, with 41% of Gen Zers, 36% of Millennials, 26% of Gen Xers, and only 14% of Baby Boomers doubting they would receive their benefits.

Concerns and solutions for Social Security

Regarding potential solutions, 47% of respondents suggested raising taxes on higher earners to increase the program’s funding, while 40% supported reducing the taxation of the benefits themselves. Another 34% believed that employers should bear a higher tax burden to fund the program more fully.

Tina Ambrozy, senior vice president of Strategic Customer Solutions at Nationwide, commented on the findings, stating, “Though Americans’ heightened anxiety around the Social Security program is not surprising, it is now more important than ever for them to have a retirement plan that hedges against the possibility of receiving less in benefits than expected.”

With the 2024 presidential election approaching, Social Security reform is expected to be a significant factor in voters’ decisions. The survey found that 69% of respondents will consider a candidate’s stance on this issue when casting their votes. The survey also revealed a knowledge gap among Americans regarding Social Security benefits.

Over half (51%) of respondents were unsure how to maximize their benefits, and one-third were uncertain about the eligibility age for full retirement benefits. Ambrozy expressed concern about this lack of knowledge, stating, “Given Americans’ increasing worries about the future of Social Security, it is concerning to see that many have yet to take proactive steps to secure their retirement.”

The findings underscore the urgent need for reform to ensure the longevity of Social Security and the importance of individuals taking a proactive approach to retirement planning.