At 90 years old, Social Security remains vital for most Americans' retirement

As Social Security marks its 90th anniversary, new research from the Transamerica Center for Retirement Studies highlights the program’s enduring significance for American retirees. 

The report shows that nearly seven in 10 Americans expect Social Security to be a source of retirement income, and almost one-third say it will be their primary source. Reliance on Social Security is especially pronounced among lower- and moderate-income households.

According to the research, more than half of those with household incomes below $50,000 expect Social Security to be their main source of retirement income, compared with just 13% of those earning $200,000 or more.

Among retirees, the disparity is even starker: 85% of those in the lowest income bracket cite Social Security as their primary income source, versus 25% of those in the highest bracket. Around half of those with less than $50,000 in HHI (52%) expect Social Security to be their primary source of retirement income compared with 34% of those with a HHI of $50,000 to $99,000, 21% of HHI of $100,000 to $199,000, and 13% of those with HHI of at least $200,000.

And in yet another manifestation of the gender gap in retirement wellness, the research found women are more likely than men to depend on Social Security in retirement, which was attributed to persistent pay gaps and career interruptions for caregiving. Among retired women, nearly six in 10 say Social Security is their primary income source, compared to less than half of men.

The median household retirement savings for women not yet retired stands at $35,000, about half that of their male counterparts.

“Social Security has served as the cornerstone of retirement income since its establishment nine decades ago. It provides millions of older Americans with guaranteed income, so that they can retire with greater financial security,” said Catherine Collinson, president and CEO of Transamerica Institute and the Transamerica Center for Retirement Studies .

Collinson added that with the estimated depletion of Social Security trust funds looming, “now is the time for policymakers to identify reforms that can help ensure the program’s sustainability for the next 90 years.”

The survey also reveals deep concern about the program’s future: 71% of non-retired Americans worry Social Security will not be there when they retire. When asked how Congress should address the projected funding shortfall, respondents favored increasing the maximum earnings subject to payroll taxes (38%), raising the payroll tax rate (35%), and preserving benefits for retirees in greatest need (28%). Only 5% said Congress should “do nothing."

In a proclamation marking the anniversary, President Donald Trump reaffirmed the administration’s commitment to defending Social Security. Among other pledges, the statement highlighted recent efforts to reduce taxes on benefits for seniors and to combat abuse within the program.

"Following the passage of the historic One Big Beautiful Bill last month, the vast majority of seniors who receive Social Security will pay zero tax on their Social Security benefits," the proclamation said, describing the exemption as "the largest tax break for seniors in the history of our country."

"To further strengthen Social Security, my Administration is aggressively rooting out all fraud, waste, and abuse that rob our Federal programs of resources – including stopping payments to the deceased and eliminating benefits for those who do not legally qualify," the statement read.

Recently, lawmakers in the Senate also floated a bipartisan plan aimed at addressing Social Security’s solvency concerns. As reported by The Hill, The proposal seeks to shore up the program’s finances and ensure its long-term viability, by investing $1.5 trillion over the next five years into a long-term fund that will be left untouched for 70 years.

Republican Senator Bill Cassidy from Louisiana, who hatched the scheme in collaboration with Democratic Senator Tim Kaine from Virginia, explained that the government would place $300 billion annually into the fund over the next five years. The fund would then be diversified across stocks, bonds, and other asset classes, with dividends being invested back into a fund for the 70 years it's held in escrow.

“It is something to save Social Security, and to save the benefits flowing to the people, frankly, will either already depend on them or will depend upon them going forward," Cassidy told The Hill.