For millions of Americans, Social Security is no longer just one part of a retirement plan. It may become the main source of income. A new survey found that more than 4 in 10 workers age 55 and older expect Social Security to provide most of their retirement income. That expectation raises concerns because the average benefit is only about $25,000 a year.
The survey found that more than 7 in 10 workers believe they are behind on their retirement savings goals. At the same time, 46% said they are either “deprioritizing” retirement savings or cannot save at all.
Steve Jans, wealth management national practice leader at NFP, said the concern goes beyond low savings. “What surprised us wasn’t just the number of employees expecting to rely primarily on Social Security during retirement,” Jans said. He added that the situation points to “an education gap as much as a savings gap.”
Higher housing costs, car payments, healthcare expenses, and everyday bills are putting pressure on household budgets. As a result, some workers are delaying retirement contributions to handle expenses that cannot wait.
That choice may make sense in the short term, but it can leave less money available when a paycheck stops.
Social Security May Not Cover Enough
The amount received from Social Security depends on several factors, including lifetime earnings, work history, the age when benefits begin, and the year benefits are claimed.
Following the 2.8% cost-of-living adjustment in 2025, the average retirement benefit was about $2,083 per month as of May 2026, according to Social Security Administration data. That works out to slightly less than $25,000 per year.
Benefits can also differ significantly between men and women. Women receive roughly one-quarter less on average, partly because of lower lifetime earnings, time away from work for caregiving, and greater use of part-time employment.
Healthcare adds another major expense. Medicare can help cover medical care, but retirees still face premiums, copays, deductibles, and services that are not fully covered.
Economist Matthew Rutledge previously told Yahoo Finance that people approaching retirement need to understand these costs before they stop working. He described the reality as “a rude awakening” for some retirees.
A 65-year-old leaving the workforce this year may need about $185,500 in savings for out-of-pocket healthcare expenses throughout retirement. That estimate does not include possible assisted-living or long-term care costs.
Many Seniors Already Depend on It
Social Security plays a major role in retirement income for a large share of older Americans. About half of seniors receive at least 50% of their income from Social Security. For roughly 1 in 4 seniors, the program supplies at least 90% of their income. More than a quarter rely on Social Security as their only income source.
The timing of benefits can also make a major difference.
More than one-quarter of beneficiaries claim Social Security at age 62, the earliest eligibility age for retirement benefits. However, claiming that early can reduce monthly payments by as much as 30% compared with benefits available at full retirement age.
For people born in 1960 or later, full retirement age is 67. Those who wait beyond full retirement age can earn delayed retirement credits. The increase is about 8% for each year benefits are postponed until age 70.
Waiting is not practical for everyone, especially for people who need income sooner. Still, understanding the difference can help workers make a more informed decision.
Better Planning Starts With Clear Numbers
The survey suggests that retirement concerns are not only about how much people save. Many workers also struggle to understand how Social Security, 401(k) plans, and other retirement income sources fit together.
Jans said, “People struggle because they feel overwhelmed and don’t understand fundamental retirement concepts.”
A retirement plan does not have to depend on one income source. Social Security can provide a foundation, while personal savings, workplace retirement accounts, pensions, and other assets may help cover the remaining expenses.
Social Security remains an important source of financial support, but the average benefit is modest compared with the cost of housing, healthcare, food, transportation, and other retirement needs.
Workers nearing retirement may benefit from reviewing their expected Social Security benefit, estimating future expenses, checking retirement savings, and understanding the financial effect of claiming benefits at different ages.
Social Security can provide steady income, but for many Americans, it may not be enough to support retirement on its own. Building additional savings and understanding when to claim benefits can make a meaningful difference in how much income is available after work ends.
