Shocking Poll: Most Workers Fear Social Security Won’t Deliver – Here’s What Experts Urge You to Do Now

A recent Bankrate survey reveals deep concerns among Americans about the future of Social Security, with fears mounting as the program’s trust fund faces a projected depletion date in 2033. The survey, conducted in October, included 2,492 participants and highlights widespread anxiety about whether benefits will remain available for current and future retirees.

Generational Concerns About Social Security

According to the survey, 73% of non-retired adults and 71% of retired adults worry they won’t receive benefits if the trust fund is exhausted. The apprehension is especially pronounced among older generations. A staggering 81% of working baby boomers and 82% of Gen Xers are concerned about receiving their retirement benefits. “Facing the reality of retirement brings the importance of Social Security into sharp focus,” said Mark Hamrick, senior economic analyst at Bankrate.

Even younger generations share these worries, with 69% of millennials and 62% of Gen Z respondents expressing similar concerns. Social Security currently supports over 72.5 million beneficiaries, including Supplemental Security Income recipients. While payroll taxes provide consistent funding, the trust funds bridge the gap in paying out full benefits. If the trust fund is depleted in 2033, Social Security actuaries estimate that 79% of benefits would still be payable, but this shortfall raises questions about the program’s long-term sustainability.

Advisors’ Recommendations: When to Claim Benefits

Financial advisors often reassure clients that lawmakers are unlikely to allow Social Security to collapse entirely. Still, they encourage retirees to delay claiming benefits until age 70 whenever possible.

Claiming Social Security benefits early—as early as age 62—results in a permanent reduction in monthly payouts. By waiting until full retirement age, typically 66 or 67, beneficiaries receive 100% of their earned benefits. Postponing further, up to age 70, adds an 8% annual increase, providing a significant financial advantage for those who can afford to wait.

“Betting on longevity is key,” said George Gagliardi, founder of Coromandel Wealth Strategies. Delaying benefits not only boosts payouts but also serves as “inflation-indexed longevity insurance,” according to CFP David Haas of Cereus Financial Advisors. Social Security automatically adjusts benefits for inflation annually, a feature unmatched by private annuities.

Balancing Savings and Current Challenges

While 28% of non-retired adults expect to rely heavily on Social Security, the reliance is higher among baby boomers (69%) and Gen Xers (56%). Experts stress the importance of building personal savings early to reduce dependence on Social Security. “You need to start saving early and let compounding work over time,” Haas advised.

However, retirement savings isn’t a priority for many Americans struggling with inflation, healthcare costs, and housing affordability—the top three economic concerns in a separate Bankrate survey. These challenges make it harder for individuals to focus on long-term financial goals. Social Security remains a critical safety net despite uncertainties, emphasizing the importance of prudent planning and saving to ensure financial stability in retirement.