Most Retirees Rely on Social Security for a Large Share of Income, While Workers Expect Less

Many workers think of Social Security as just a supplement to retirement savings, but retirees who depend on it often view it as a much larger part of their monthly budget.

There’s a clear divide in how Americans think about the program before and after retirement. A worker in midcareer may see Social Security as a helpful extra on top of a 401(k), while a retiree who has already been drawing benefits may treat it as the main source of steady income. In the EBRI and Greenwald 2025 Retirement Confidence Survey, 66% of retirees said Social Security is a major source of income, compared with 36% of workers who expect that to be true for them.

Nearly Everyone Expects Benefits, but Fewer Expect to Depend on Them

The survey shows broad agreement that Social Security will play some role in retirement. In the same 2025 study, 87% of workers said they expect to receive Social Security income, and 94% of retirees said they receive or expect to receive it. The real difference is in how important people think that payment will be.

Workers often assume their savings, such as a 401(k) or IRA, will carry most of the load. For many retirees, though, Social Security becomes the backbone of the household budget. It is the monthly income stream that arrives regardless of market swings, and other spending plans are built around it. That change in perspective often becomes obvious once retirees see how much their savings can actually generate each month.

How the Average Benefit Fits Into a Retiree Budget

The Social Security Administration estimates the average retired worker benefit at $2,071 a 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 average payment comes to $24,852.

To see what that means in practice, imagine a retiree spending $48,000 a year, or $4,000 a month. In that case, the average Social Security check would cover about 52% of expenses. The remaining $23,148 would need to come from savings, a pension, part-time work, or reduced spending.

Medicare premiums are usually deducted before the payment reaches the retiree. In 2026, the standard Part B premium is $202.90 a month, and it is generally taken directly out of the Social Security benefit. That leaves about $1,868 of the average check actually deposited into a bank account. The 2027 COLA has already 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, then the age you start claiming it determines the size of 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, and those reductions are permanent.

Waiting beyond full retirement age works in the opposite direction. For people born in 1943 or later, benefits rise by 8% for each year they delay claiming, stopping at age 70. Delaying from 67 to 70 increases the monthly benefit by 24%. Because COLAs are applied as percentages, a larger starting benefit also produces bigger dollar increases over time.

What Trust Fund Concerns Mean — and What They Don’t

Worries about Social Security’s future are widespread in both groups. In the 2025 survey, 79% of retirees and 71% of workers said they were concerned about changes to the retirement system. Among those with concerns, 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 be depleted in the third quarter of 2034, unchanged from the previous report. Even then, incoming payroll taxes would still be enough to pay 83% of scheduled benefits.

The retirement fund alone is projected to run out in the fourth quarter of 2032, after which 78% of benefits could still be paid.

Depletion means the reserves would be exhausted and the program would rely only on ongoing tax income. Checks would still continue, though at a lower level under current law. Congress could change that outcome by raising revenue, changing benefits, or using some combination of both, so these projections reflect current law and could shift. 24/7 Wall St. has also examined how these estimates have changed over time and what claiming at 62 can mean for retirees.

A Statement That Shows the Numbers Clearly

The Social Security statement is one of the clearest tools for understanding retirement income. Available through a my Social Security account on SSA.gov, it provides estimated monthly benefits at age 62, at full retirement age, and at 70, based on a person’s actual earnings record. It also lists each year of reported earnings, making it easier to identify missing or incorrect entries.

The statement puts a monthly number in black and white. For workers who assume Social Security will only be a small part of retirement, it is the same figure many retirees ultimately build their budgets around. That number can be compared with expected spending and savings to show whether the program will be a minor supplement or, as it is for 66% of retirees in the survey, a major source of income.