Nationwide Reports Americans Worry Social Security Will Deplete in Lifetime

Among adults aged 50 and above, 75% believe that Social Security funds might deplete during their lifetimes, an increase from 66% in 2014, according to a recent survey by Nationwide.

Furthermore, 21% of that same cohort of adults indicate that they lack alternative sources of retirement income apart from Social Security, an increase from 13% in 2014. A decade ago, nearly 48% Americans supplemented their Social Security benefits with a pension, whereas in 2023, this number has fallen to 31%.

This concern about retirement income sources comes after Nationwide reported, in June, that one-quarter of pre-retirees, defined as non-retired investors aged 55 to 65, are planning to retire later than they had expected, and another 15% are unsure if they will ever retire.

Nearly half (44%) of U.S. retirees have returned to work or are contemplating doing so, according to a separate survey, conducted by F&G Annuities and Life. This tendency is common among those aged 60 to 69, where 50% are considering or have already re-entered the workforce. Financial concerns, inflation intellectual stimulation, and sense of purpose are the motivators for returning to work.

There is opportunity for advisers and advice F&G found, as half of pre-retirees and retirees are not utilizing financial professionals. Specifically, 59% of Generation X individuals, individuals aged 50 to 58 are not currently using financial advisory services.

“Leveraging the expertise of a trusted financial adviser can often make people more confident and better equipped to navigate the challenges of retirement planning with conviction and clarity,” Chris Blunt, F&G President and CEO, said in a statement. “But once financial considerations are mitigated, advisers could think beyond the numbers and also consider their role helping clients plan for overall happiness — whether that involves volunteering, working full time, part-time or not at all.”

Social Security Expectations

Close to half (49%) of American adults aged 18 and older claimed they know how to optimize their Social Security benefits. However, the Nationwide survey noted that just 8% accurately recognized all the components that determine an individual’s maximum Social Security benefits.

Moreover, a significant knowledge gap exists regarding the age of eligibility for full retirement benefits. Only 13% of adults accurately guessed their full retirement age based on their birth year. On average, respondents guessed 60 years of age while the correct age is actually 66 or 67, depending on the individual’s birth year.

Another misconception is that filing for Social Security benefits early will automatically increase one’s benefits upon reaching full retirement age. Nearly half (49%) of adults responding to the survey held this misconception.

An encouraging trend, however, is more adults aged 50 and above are working with financial experts about Social Security, Nationwide found.

Over half (53%) report receiving advice from financial professionals on when and how to file for Social Security benefits, a substantial increase from 35% in 2014. Additionally, 43% of adults expect financial advisers to provide advice on Social Security, a 14-point growth from a decade ago.

“A decade of research into Americans’ views on Social Security confirms that working with a trusted financial professional isn’t just beneficial, it’s vital to maximizing your benefits—especially as retirement approaches,” Tina Ambrozy, senior vice president of Strategic Customer Solutions at Nationwide, said in a statement. “Social Security education is an empowerment tool and a proven strategy for creating financial resilience, one that financial professional stand ready to provide.”