Social Security is one of the most relied-upon programs in the United States, and for good reason. It’s the financial backbone for millions of retirees today—and will be just as critical for those planning their futures. Yet, a looming revenue shortfall threatens to disrupt the system, leaving many wondering if they’ll get the benefits they’ve been counting on.
More than half of non-retired adults in the U.S. (53%) expect to depend on Social Security to cover basic expenses during retirement, according to a Bankrate survey. Among those closest to retirement—adults aged 60 and older—that number jumps to 69%, with nearly half saying they’ll be “very reliant” on the program. This underscores how vital Social Security is for financial survival in retirement.
A Grim Reality for Retirement Savings
For many Americans, Social Security is more than just a supplement to retirement savings—it’s a lifeline. Current benefits replace only a portion of pre-retirement income, meaning personal savings or pensions are crucial to fill the gap. Yet, a large portion of Americans admit they’re behind on their retirement savings. Mark Hamrick, senior economic analyst at Bankrate, noted that Social Security serves as a critical safety net for millions who feel unprepared for retirement.
The Bankrate survey found only 31% of non-retired adults believe they won’t need Social Security benefits, and just 14% say they’ll be “not at all reliant” on the program. For most, the thought of losing even part of these benefits is a major source of anxiety.
What You’ll Actually Get From Social Security
How much Social Security will replace for you depends on factors like your career earnings and the age you start collecting benefits. For a 54-year-old with average career earnings of $63,469, Social Security is estimated to replace 40.9% of their pre-retirement income under current law. However, without legislative action to fix the program’s revenue shortfall, benefits could drop to just 32.2% by 2035.
For lower-income earners, Social Security may replace between 55% and 76% of pre-retirement income. For higher earners, the replacement rate could fall to as low as 27%. This built-in disparity ensures that the system provides more support to those who earn less during their working years.
Americans Are Worried About Their Benefits
A majority of both current retirees and non-retired adults are concerned about whether they’ll receive the full benefits they were promised. These fears are amplified by the lack of clarity on whether action will be taken to fix the program before the shortfall hits. With President-elect Trump set to begin his second term, many wonder if he’ll address this politically charged issue—or leave it to lawmakers to figure out.
Social Security’s replacement rates are designed to scale with income, but even so, without savings or pensions, millions of Americans could face significant financial struggles. This makes it more important than ever to start planning for retirement and calculate how much you’ll need to save to bridge the gap.
How to Check Your Social Security Benefits
If you’re unsure how much Social Security will replace for you, it’s essential to review your benefits estimate. The Social Security Administration offers personalized estimates based on your earnings history. If you haven’t received a paper statement recently, you can create an online account to access your projections and plan accordingly.
The Clock is Ticking for Social Security Reform
Social Security remains a cornerstone of retirement planning for the majority of Americans. But with the system’s financial future uncertain, it’s clear that changes are needed to secure its stability. Whether or not those changes come in time is another story. For now, millions of Americans are left wondering: Will Social Security be there when they need it most?
