Americans are increasingly alarmed about the Social Security system's solvency and more than three in four (79%) U.S. adults believe the Social Security system needs to change, according to the 11^th edition of Nationwide Retirement Institute's annual Social Security survey.

The 2024 survey found that nearly three-quarters (72%) of adults worry the Social Security system will run out of funding in their lifetime. This concern is particularly pronounced among millennials (79%) and Gen Xers (77%), compared to Gen Z (66%) and boomers+ (66%). Alarmingly, almost one in four (23%) believe they will not get a dime of the Social Security benefits they have earned.

"Though Americans' heightened anxiety around the Social Security program is not surprising, it is now more important than ever for them to have a retirement plan that hedges against the possibility of receiving less in benefits than expected," said Tina Ambrozy, senior vice president of Strategic Customer Solutions at Nationwide. "We are in an opportune time for financial professionals to empower their clients to plan for the future and build long-term financial resilience."

Key reforms supported by Americans

Social Security reform is top of mind for many Americans, as 69% report that a candidate's stance on the topic will be a major factor in how they vote in the upcoming U.S. presidential election. With that in mind, many are voicing their opinions on ways the system needs to change.

Notable proposed changes that Americans support include raising the minimum eligibility age from 62 to 64 for all future retirees aged 50 or younger (66%) and increasing the full retirement age from 67 to 69 on all future retirees ages 50 or younger (51%). Interestingly, these proposals have bipartisan support with 68% of Democrats and 69% of Republicans backing the first and 50% and 51%, respectively, favoring the second.

Other proposed changes to the Social Security system include:

• Increasing taxes on higher earners to increase funding (47%)

• Decreasing taxation on benefits (40%)

• Increased funding through employer taxes (34%)

Knowledge gaps and the need for education

Despite desiring change in the system, many Americans still do not fully understand how the Social Security system works. In fact, more than half of respondents (51%) admit they do not know exactly how to maximize their Social Security benefits and one-third (33%) are uncertain about the age at which they are or were eligible for full retirement benefits.

Unfortunately, this knowledge gap has grown over the last decade. When this survey was conducted in 2015, 86% of respondents aged 50+ knew that Social Security could offer benefits for their spouse or children, whereas only 74% knew this in 2024. Similarly, 66% of respondents aged 50+ knew that divorced adults may be eligible for Social Security benefits based on their ex-spouse's record, whereas only 52% answered this correctly in 2024.

Furthermore, two-thirds (66%) of U.S. adults did not know or were unsure that Social Security is protected against inflation, and a mere 4% could identify all five factors that determine the maximum Social Security benefit. This growing knowledge gap highlights the need for better education and resources to help Americans understand how this important element of their retirement plan will contribute to their financial security in the future.

Despite growing concerns, many Americans are not taking action

Although Americans' widespread concerns about Social Security solvency are apparent, many are not taking proactive steps to secure their financial futures.

Almost half (47%) report that they do not pay to work with a financial professional and do not want one. In addition, 55% of U.S. adults who do not pay to work with a financial professional have no plans to seek advice about Social Security benefits from one. However, the good news is that the majority are open to learning more from a financial professional. For example, when thinking about managing their savings for retirement, three in four (75%) expressed interest in discussing savings or investment options to guarantee specific income levels during their retirement.

"Given Americans' increasing worries about the future of Social Security, it is concerning to see that many have yet to take proactive steps to secure their retirement," added Ambrozy. "Seeking guidance from a financial professional can make a significant difference in maximizing Social Security benefits and ensuring financial stability in retirement. We encourage everyone to take action now to better understand their options and safeguard their financial futures."

Nationwide offers a variety of resources to help. The Nationwide Social Security 360 Analyzer® can help financial professionals assess a client's goals to better advise on the optimal time to claim Social Security. To learn how to optimize Social Security benefits, visit http://www.nationwide.com/SocialSecurity. Financial professionals can visit www.nationwidefinancial.com/SocialSecurity.

Methodology

The research was conducted online in the U.S. by The Harris Poll on behalf of Nationwide among 1,831 adults age 18+ who currently receive or expect to receive Social Security ("national sample"), including 313 Gen Z (age 18-27), 506 millennials (age 28-43), 506 Gen Xers (age 44-59), and 506 boomers+ (age 60+).  The survey was conducted April 19-May 13, 2024.