Social Security benefit reduction worries are rattling workers and retirees
Nearly 71 million Americans rely on Social Security for monthly income, and a growing number now fear benefits could be reduced, the SSA confirmed.
EBRI's 2026 Retirement Confidence Survey found that about four in five workers and seven in 10 retirees are concerned the government will make changes to the U.S. retirement system, with potential reductions in Social Security and Medicare benefits among the top worries.
The Congressional Budget Office's February 2026 budget outlook moved the trust fund depletion date forward by a year, fueling those worries. You do not need expertise in public policy to see why these projections are producing deep concern in households planning retirement.
Benefit-cut fears are rising among workers and retirees
The 36th annual Retirement Confidence Survey, released in 2026 by EBRI and Greenwald Research, found that 64% of Americans, 61% of workers, and 73% of retirees feel confident they have enough money to live comfortably throughout retirement, down from 67% and 78% in the 2025 survey.
In the 2025 survey, among those worried, 60% of workers and 80% of retirees pointed to potential reductions in their Social Security benefits. Social Security anchors retirement budgets, with 94% of retirees citing it as an income source and 66% calling it a major one, EBRI confirmed.
"Retirement confidence has clearly softened this year, and the data show why…Americans are contending with a mix of immediate financial pressures and long-term uncertainty. Many workers are struggling with debt, inflation, and rising housing and health care costs, while retirees are increasingly worried about the future of Social Security and Medicare," said EBRI Director of Wealth Benefits Research Craig Copeland.
The 2026 survey showed worker confidence falling six points to 61% and retiree confidence dropping five points to 73%, EBRI reported. In the 2025 RCS, only 36% of workers expected the program to be a major source of income, far below the 66% of retirees who said they depend on it as a major source.
Trust fund projections trending in wrong direction for beneficiaries
The 2025 Trustees Report projected that the Old-Age and Survivors Insurance Trust Fund will be depleted in 2033 without action, and the SSA confirmed this. At that point, payroll tax revenue would cover only 77% of scheduled benefits, triggering a 23% cut for every current beneficiary, according to the SSA report.
The program's open-group unfunded obligation is $25.1 trillion over the 75-year projection period from 2025 to 2099, according to the 2025 OASDI Trustees Report.
The Congressional Budget Office moved the projected depletion date to 2032 in its February 2026 Budget and Economic Outlook and estimated that benefits would be cut by approximately 7% in 2032 and by an average of 28% per year from 2033 to 2036.
The Social Security Fairness Act, signed into law on Jan. 5, 2025, expanded benefits for public-sector workers and is estimated to add approximately $198 billion to the program's shortfall over 10 years, according to the Congressional Budget Office.
The One Big Beautiful Bill Act reduced trust fund revenue through a new $6,000 tax deduction for Americans aged 65 and older. The deduction applies from tax year 2025 through 2028, with the deduction phasing out for incomes above $75,000 ($150,000 for joint filers). The Committee for a Responsible Federal Budget estimates the change will reduce trust fund revenue by approximately $30 billion per year.
Household debt and inflation add strain for workers nearing retirement
Social Security concerns are growing alongside record household debt, which makes retirement savings harder for millions of Americans in the workforce. Total household debt reached $18.8 trillion by the end of 2025, with mortgage balances at $13.17 trillion, according to the New York Fed.
Credit card debt stood at $1.28 trillion, and auto loan balances reached $1.67 trillion in the same quarterly report on household credit. The 2026 EBRI survey found that 65% of workers described debt as a problem for their household. One-quarter called it a major problem, and about three in five workers said debt negatively affects their ability to save for or live comfortably in retirement.
More Social Security:
- Social Security beneficiaries just got some shocking news
- AARP warns Americans on major Social Security problem
- Young Americans have a surprising plan for Social Security
Seven in 10 workers in the 2025 survey expressed concern about spending cuts from inflation, market volatility, and rising housing costs, EBRI indicated. In the 2025 RCS, Lisa Greenwald, CEO of Greenwald Research, observed that almost half of retirees agreed at least somewhat that they spend less than they could because they are worried about running out of money, according to EBRI's April 2025 release.
Rising borrowing costs have compounded the pressure, as higher interest rates make it more expensive to carry balances or refinance existing debt. For workers approaching retirement, this shift reduces flexibility at a stage when income is expected to stabilize or decline.
Financial advisors caution against rushing to claim Social Security early
Trust fund fears are influencing when Americans file for benefits, with some claiming early to lock in payments while they still can. The Schroders 2025 U.S. Retirement Survey found 44% of non-retirees plan to file before age 67, with 36% citing concerns that Social Security may run out of money or stop making payments.
Crystal Cox, a certified financial planner at Wealthspire Advisors, told CNBC that fears of depletion should not drive the decision to claim. Filing at 62 permanently cuts monthly benefits by roughly 30%, and any future reduction would compound on that already smaller monthly payment.
Congressional inaction is "an unfortunate but now likely contingency," said Mark Warshawsky, a senior fellow at the American Enterprise Institute, in his February 2026 working paper.
Americans want retirement guidance, but lack access to financial advisors
A significant share of Americans does not know where to find professional help with retirement planning, compounding broader anxiety about Social Security. In the 2026 EBRI survey, more than two in five workers and one-quarter of retirees said they lack a starting point, the report found.
Only about four in 10 Americans work with a financial advisor, and confidence in available educational resources declined from last year, EBRI noted. Two-thirds of workers expressed interest in a Social Security bridge annuity that would provide income until they reach age 70, the survey showed.
In its analysis of the 2025 Trustees Report, the Bipartisan Policy Center stressed that every year Congress delays action makes the eventual fix more disruptive for retirees and taxpayers. At the same time, rising debt levels, inflationary pressures, and limited access to guidance are amplifying the sense of uncertainty reflected in multiple surveys.
What emerges is less a sudden crisis than a gradual reshaping of assumptions. Concerns about trust fund depletion, potential benefit reductions, and delayed legislative action are influencing how Americans think about timing, income sources, and long-term stability.
As these pressures converge, Social Security remains central to retirement security, but no longer unquestioned, reflecting a system under strain and a public increasingly aware of its fragility.
Related: Social Security's hidden penalty for working retirees
The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
This story was originally published May 4, 2026 at 4:37 PM.