Key Takeaways
- Many Americans expect to rely heavily on social security during retirement, despite concerns surrounding the program’s financial health.
- The fund that runs the program is expected to run dry in less than a decade. Without changes, Social Security will be able to pay only 77% of promised benefits starting in 2033.
- Generation X and Millennials are most worried about the Social Security program not being available when they qualify for it.
- Potential benefit reductions that the program faces underscore the need for alternative retirement planning to make up for the shortfall.
As Social Security celebrates its 90th anniversary this month, fewer Americans are confident in the program’s long-term financial stability. Yet, many still expect it to cover a good chunk of their retirement income.
Retirees surveyed by MFS reported that Social Security accounts for an average of 41% of their monthly income. U.S. Census data compiled by Pew Research showed that in 2022, Social Security made up at least half the income for 43.6% of adult recipients, and was the sole source of income for just over a quarter.
Americans Are Concerned About Social Security’s Future
Uncertainty surrounding the fate of the Social Security program has many Americans worried. Northwestern Mutual’s 2025 Planning & Progress study found that one-third of about 4,600 respondents listed doubts about the program’s future as one of their top three retirement concerns. Generation X and Millennials were the most worried.
“There’s a huge difference in the way you might look at Social Security if your retirement years feel a long way off versus when they’re fast approaching,” Northwestern Mutual chief field officer John Roberts said. “For Gen X, the possibilities and practicalities of retirement are feeling very real right now. For Gen Z, they are likely more focused on other pressing financial matters.”
What’s the Future of Social Security?
Questions have grown in recent years as Social Security, which celebrates its 90th anniversary this week, inches closer to when its trust fund will run out of money and will return to being a fully pay-as-you-go program for its recipients.
Social Security’s financial pressures stem largely from demographic shifts. Since 2021, the program has paid out more in benefits than it has collected in taxes as Baby Boomers continue to retire. This imbalance has eroded its trust fund, which is projected to be depleted by 2033. Without changes, revenues at that point would cover only 77% of scheduled benefits.
The Bottom Line
While Social Security remains a critical income source for millions of retirees, its future payouts could be curtailed. Many Americans—especially Gen X and Millennials—are concerned the program won’t meet their expectations, underscoring the need for retirement planning that matches what Social Security will be able to pay in the years ahead.