Half Of Americans Now Optimistic About Social Security's Future, Data Shows

Many Americans have concerns about the Social Security system. They're worried about its long-term viability. They're wondering how much money they'll receive every month upon retirement. 

While all of these concerns are warranted, there is optimism among Americans.

According to a Gallup survey from 2023, "Americans are more optimistic about the future of Social Security than they have been in recent years."

Among nonretired Americans, 50% expect the Social Security system to pay them a benefit when they retire. That's compared to 47% who do not. 

While nonretirees are still pretty much split, this is more positive when compared to surveys conducted between 2005 and 2015, when these people predicted they would not receive Social Security retirement benefits.

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Benefits Vs. Full Benefits

It's one thing to receive Social Security benefits in retirement. It's another thing to receive full benefits. 

The survey notes that 53% of current retirees believe they will continue to receive full benefits. This is an increase from 37% in 2010 and 49% in 2015. 

On the flipside, 43% of current retirees believe their benefits will be reduced at some point. 

Confidence In Social Security Varies By Age

Confidence in receiving Social Security benefits among nonretirees varies by age. 

Older nonretirees, those age 50 and above, show high confidence, with 66% expecting to receive benefits. 

It’s the 30- to 49-year-old age group, not the youngest adults, who are the least confident, with only 37% expecting benefits and 61% doubtful. 

The youngest adults, ages 18 to 29, are split nearly evenly, with 50% anticipating benefits and 48% skeptical.

Compared to 2015, the expectations of older and middle-aged nonretirees about receiving benefits have remained relatively unchanged. 

However, the youngest group’s optimism has increased significantly, from 34% in 2015 to 50% today, indicating a shift in their outlook on Social Security benefits.

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When Will Benefits Be Depleted?

Because you pay money into the Social Security system, you expect to receive full benefits at your full retirement age. But it's more complicated than that.

According to the Social Security Administration, the Social Security Board of Trustees predicts that, under current law, funds will run out by 2041. That's not far off.

This is because of longer life spans and lower birth rates, both of which reduce the worker-to-beneficiary ratio. 

This doesn't mean that Social Security benefits will go away for good. What it does mean is that changes to the system are needed. Without that, worker taxes in 2041 will only fund roughly 78% of scheduled benefits. 

Regardless of whether you're optimistic or pessimistic about the future of Social Security, it's critical to plan for the worst and hope for the best.

Consulting a financial adviser can help you better understand how much money you need to save for retirement. A professional can talk to you about the impact of Social Security payments on your future life.

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*This information is not financial advice, and personalized guidance from a financial adviser is recommended for making well-informed decisions.

Chris Bibey has written about personal finance and investment for the past 15 years in various publications and for various financial companies. He is not a licensed financial adviser, and the content herein is for information purposes only and is not, and does not constitute or intend to constitute, investment advice or any investment service. While Bibey believes the information contained herein is reliable and derived from reliable sources, there is no representation, warranty or undertaking, stated or implied, as to the accuracy or completeness of the information.