Uncertainty on Social Security solvency is causing frustration and fear among Americans, finds a new survey by PlanGap.
The 2023 Social Security Confidence survey found over half (53%) of respondents said that they are not confident in the official insolvency estimates. The findings come just weeks after another poll with The Associated Press showed 88% of adults over age 45 disapprove of Social Security cuts, compared to 70% of those under 45.
Last month, the Social Security Board of Trustees issued a report projecting that retirement benefits would be depleted by 2033, one year earlier than previously expected. As a result, the federal government would only be able to pay 77% of benefits to American workers.
In a statement, PlanGap connects the recent protests on retirement age in France to the growing frustration Americans are feeling with Social Security payouts.
“Americans have watched the protests in response to benefit reductions in France, so it is no wonder 7 out of 10 people, at or near retirement age, believe benefit reductions could happen here,” said David Duley, founder and CEO of PlanGap, in a press release. “Social Security is a significant source of income for 90% of retirees, and its uncertain future is naturally leading to fear, frustration, and doubt among the American public.”
The discouragement comes as more respondents anticipate the government program to have a greater influence on their retirement savings. According to PlanGap, 87% of respondents expect Social Security to have a moderate to major role in their retirement income plan, and 84% of respondents indicated they are frustrated/angry or scared/nervous that benefit cuts will negatively affect their retirement plan’s success.
Additionally, 63% believe Congress will primarily look to cut benefits vs. raising taxes or increasing the national debt. Only 9% of respondents indicated they are hopeful the government will solve the funding challenges facing Social Security without reducing benefits.
PlanGap conducted the online survey with 1,018 U.S. adults aged 50 and older, following the publication of the Social Security Board of Trustees’ Annual Report on March 31.
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