LOS ANGELES – A new discount rate investigation shows that while 53% of Americans expect to rely on Social Security to cover essential expenses during retirement, a staggering 73% worry that the program will not provide them with promised benefits when they reach retirement age. retirement.

The concern comes amid warnings that the Social Security trust fund could be depleted by 2033. Without action from Congress, benefits could be cut by 21%, according to a federal report cited by NPR.

“Social Security provides a vital safety net for current and potential retirees, but the financial outlook for this popular program is bleak,” said Mark Hamrick, senior economic analyst at Bankrate.

Current retirees rely heavily on benefits

For current retirees, Social Security remains a lifeline, with 77% count on it to cover necessary expenses. Only 15% of retirees say they do not depend on the program.

Interestingly, more women (82%) than men (72%) rely on Social Security in retirement. This contrasts with the fact that non-retired men (57%) are more likely than women (50%) to expect to use the program in the future.

Generational concerns

Younger generations expect to rely less on Social Security, but remain deeply concerned about its future:

• Generation Z (18-27): 62% are concerned, and 46% plan to count on benefits.
• Millennials (28-43): 69% are concerned, and 48% plan to count on benefits.
• Generation X (44-59): 82% are concerned, and 56% expect to be able to count on benefits.
• Baby boomers (60-78): 81% are concerned, and 69% expect to be able to count on benefits.

Generation Xers, many of whom will retire in the next decade, express their greatest concern about the program’s solvency.

The future of social security

The projected funding gap raises pressing questions about the sustainability of the program. Experts suggest solutions such as raising taxes, cutting welfare benefits, or a combination of both, but congressional action remains elusive.

“There is a vast gap between Americans’ concern about the looming Social Security funding shortfall and the lack of serious, in-depth discussion among elected officials about what to do about it,” Hamrick said.

Prepare for retirement

Experts recommend supplementing Social Security with other savings tools like 401(k), IRAs, or pensions. Here are the updated 2025 contribution limits for these accounts, providing opportunities to save more:

401(k) and 403(b):

• Contribution limit: $23,500
• Catch-up limit (50 years and over): $31,000
• Catch-up limit (60-63 years): $34,750

IRA:

• Contribution limit: $7,000
• Catch-up limit (50 years and over): $8,000

“It is prudent to regularly review retirement savings and associated investment strategy, while using online retirement calculators, to ensure one is on track to achieve these goals,” she said. said Mark Hamrick, senior economic analyst at Bankrate.

Additionally, Americans can use the Social Security Administration’s Retirement Plan Tool to estimate their potential benefits based on their expected retirement age.

The source
Information in this article comes from Bankrate, NPR, the Social Security Administration and previous FOX reporting.