A majority of Americans expect to rely on Social Security benefits when they retire, but according to a new survey, most are worried they won’t get them.
A Bankrate survey found that more than half (53%) of non-retired U.S. adults expect to count on their Social Security checks to cover necessary expenses in retirement. At the same time, 73% are concerned they won’t receive their promised benefits when they retire.
Those fears are not unfounded: Social Security is facing a financial shortfall.
In roughly a decade, Social Security recipients could see their benefits cut by hundreds of dollars a month if Congress doesn’t take action.
While it’s highly unlikely federal lawmakers will let that happen, so far, they have opted to kick the can down the road, avoiding major changes that could be politically unpopular.
Experts say the longer Congress waits, the more drastic the changes will have to be later on.
“There’s a vast divide between Americans’ concern about the looming Social Security funding shortfall and the lack of serious and thorough conversation among elected officials about what to do about it,” Bankrate Senior Economic Analyst Mark Hamrick said in a statement. “The result is that the American public’s financial well-being is not being tended to.”
Keep In Mind: Even if Congress does nothing — and the trust funds that pay out Social Security benefits run out — retirees will still receive a monthly check, but it could be lower than what was promised.
The Brookings Institution says today’s financing challenge is “at least double” what it was in 1983, the last time Social Security was in dire straits. Back then, insolvency was just months away before Congress stepped in.
