Most Americans agree Social Security can’t stay status quo

A robust majority of US adults agree change is needed in the Social Security system, according to a new survey from the Nationwide Retirement Institute.

The institute’s 11th annual Social Security survey revealed that nearly four-fifths, or 79 percent, believe the system needs reform.

The survey highlighted growing concerns about the system's solvency, with nearly 72 percent of respondents fearing that Social Security funds may deplete within their lifetimes, and 23 percent of Americans doubtful they’ll receive any Social Security benefits they have earned.

The fear surrounding the stability of the Social Security system was most present among millennials (79 percent) and Gen Xers (77 percent), compared to Gen Z and baby boomers (66 percent for both).

"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," Tina Ambrozy, senior vice president of Strategic Customer Solutions at Nationwide, said in a statement.

With the 2024 presidential election approaching, Social Security reform is a hot topic for voters. Nationwide’s survey found that 69 percent of respondents will factor in a candidate’s stance on this issue as they proceed to the polls.

Among the proposed changes gaining traction, raising the minimum eligibility age from 62 to 64 for future retirees aged 50 or younger was most popular, garnering support from 66 percent of respondents. Meanwhile, just over half (51 percent) back increasing the full retirement age from 67 to 69 for the same group.

These proposals have bipartisan support, with 68 percent of Democrats and 69 percent of Republicans endorsing the first change, and 50 percent of Democrats and 51 percent of Republicans favoring the second.

Other suggested reforms include raising taxes on higher earners (47 percent), lowering taxation on benefits (40 percent), and boosting funding through employer taxes (34 percent).

Despite the desire for reform, a large number of Americans appear in the dark on the ins and outs of Social Security, with over half (51 percent) of respondents unsure how to maximize their benefits, and one-third uncertain about the eligibility age for full retirement benefits.

The Social Security knowledge gap has widened since 2015 when 86 percent of respondents aged 50 and older knew about spousal or children's benefits, compared to just 74 percent in 2024. Awareness about divorced adults' eligibility for benefits also dropped from 66 percent to 52 percent over the same period.

Furthermore, two-thirds of U.S. adults are unaware that Social Security is protected against inflation, and only 4 percent could identify all factors determining the maximum benefit.

Nationwide also found many Americans are not seeking financial advice, including almost half (47 percent) who do not work with a financial professional and do not intend to.

"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 Ambrozy.

Around 55 percent of those without professional guidance have no plans to seek advice about Social Security benefits, though encouragingly, 75 percent expressed interest in discussing savings or investment options to secure retirement income.