Most Retirees Rely Heavily on Social Security, While Far Fewer Workers Expect That

Quick Read

• Two-thirds of retirees say Social Security is a major income source, but only about one-third of workers think it will play that role for them.

• The average 2026 benefit is $2,071 a month, though Medicare Part B deductions leave about $1,868 actually reaching retirees.

• Starting benefits at 62 can permanently reduce monthly payments by as much as 30%, while delaying until 70 can raise them by 24% compared with claiming at full retirement age.

Americans tend to view Social Security very differently before and after retirement. A worker in midcareer may think of it as a helpful supplement to a 401(k), while someone already retired often sees it as a central part of the monthly budget. In the EBRI and Greenwald Retirement Confidence Survey, 66% of retirees said Social Security is a major source of income, compared with just 36% of workers who expect it to be.

Most Workers Expect a Benefit, but Not as Their Main Support

The survey suggests that nearly everyone expects to receive something from the program. In the same 2025 poll, 87% of workers said they expect Social Security income, and 94% of retirees either receive it or expect it. The difference lies in how important people believe that payment will be.

Many workers assume their 401(k), IRA, or other savings will carry most of the load. For many retirees, however, Social Security becomes the base layer of income. It arrives each month regardless of market swings, and the rest of the retirement plan is built around it. That realization often comes only after people see what their savings actually produce on a monthly basis.

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What the Average Check Covers in a Typical Budget

The Social Security Administration estimates the average retired worker benefit at $2,071 per month in 2026, up from $2,015 before the 2.8% cost-of-living adjustment, or COLA. A COLA is the annual increase intended to help benefits keep pace with inflation. On an annual basis, that comes to $24,852.

To put that in perspective, imagine a retiree spending $48,000 a year, or $4,000 a month. In that case, the average benefit would cover about 52% of the budget. The remaining $23,148 would need to come from savings, a pension, part-time work, or lower spending.

Medicare premiums are usually taken out before the payment arrives. In 2026, the standard Part B premium is $202.90 a month and is generally deducted directly from the Social Security check. That leaves roughly $1,868 of the average benefit actually deposited into a bank account. The 2027 COLA has been set at 3.6%, which will increase benefits again next year.

Why the Age You Claim Matters So Much

If Social Security is the foundation of retirement income, the age a person starts collecting has a major effect on that foundation. Full retirement age is 67 for people born in 1960 or later. Benefits can begin as early as 62, but the SSA reduces them by as much as 30% from the full amount. Those reductions are permanent.

Waiting beyond full retirement age has the opposite effect. For people born in 1943 or later, benefits rise by 8% for each year they delay, up to age 70. Waiting from 67 to 70 increases the monthly benefit by 24%. Because COLAs are calculated as a percentage, a larger starting benefit also receives larger dollar increases over time.

What Worries About the Trust Fund Do and Do Not Mean

Concerns about the program's future are widespread in both groups. In the 2025 survey, 79% of retirees and 71% of workers said they were worried about changes to the retirement system. Among those who were concerned, 60% of workers and 80% of retirees feared changes could reduce their Social Security benefit.

According to the 2026 Social Security Trustees Report, the combined retirement and disability trust funds are projected to run out in the third quarter of 2034, unchanged from the prior report. After that, payroll taxes coming in would still be enough to pay 83% of scheduled benefits.

The retirement fund alone is projected to be exhausted in the fourth quarter of 2032, after which 78% of benefits would still be payable.

Depletion means the reserve is used up and benefits would then be paid from ongoing tax revenue. Checks would continue, but at a reduced level under current law. Congress could alter that outcome by raising revenue, changing benefits, or both, so these projections are based on current law and may change.

One Statement That Makes the Difference Visible

The Social Security statement provides estimated monthly benefit amounts. Available through a my Social Security account on SSA.gov, it shows projected benefits at 62, at full retirement age, and at 70, using a person’s actual earnings record. It also lists each year of reported earnings, which helps identify missing or incorrect information.

That monthly figure gives workers a concrete way to compare expected Social Security income with spending and savings. For someone who assumes the program will play only a minor role, the statement can reveal the number many current retirees have built their budgets around. It helps show whether Social Security would be a side source of income or, as it is for 66% of retirees in the survey, a major one.

Help Avoid These 13 Retirement Mistakes Before They Derail Your Future

One investment mistake could create big risks for your retirement. Many investors make the same critical errors: being too conservative, making big bets on “sure things,” or paying excessive fees. Any of those blunders can endanger your hard-earned savings.

Now you can learn the mistakes even experienced investors make (and ways you can sidestep them before it’s too late) with this new guide: 13 Retirement Mistakes and How to Avoid Them from Fisher Investments. (sponsor)