American Workers, Retirees Concerned About Changes to Social Security and Medicare

Americans are concerned about the possibility of changes to the retirement system and Social Security, according to a new survey.

The majority of workers and retirees alike reported being at least somewhat concerned about changes that could reduce their Social Security or Medicare benefits, according to an annual survey released Thursday by the Employee Benefit Research Institute and Greenwald Research.

About 70% of current retirees and about 80% of workers report being concerned that the U.S. government will make significant changes to the American retirement system, according to the survey. Workers said their top concern (60%) was changes that would reduce Social Security retirement benefits; 80% of retirees ranked that as their top concern.

Other top concerns for both workers and retirees included changes that would reduce Medicare benefits and an increase in taxes for Social Security or Medicare. The survey was conducted in January and February, before this month’s upheaval in markets and trade policy.

Both retirees and workers mentioned concerns that Social Security will continue to provide benefits of equal value to today. Of workers surveyed, about half lack confidence in Social Security and Medicare giving similar benefits to today, according to the survey.

Almost 90% of workers expect Social Security to be a source of income during retirement, and almost all retirees said the same. But nearly twice as many retirees report Social Security as a major source of income compared to the number of workers who say they expect it to be when the time comes.

Half of the workers surveyed said they expect to gradually retire, meaning they will continue working at least part-time into retirement. Nearly three quarters of retirees surveyed said they retired full-stop. But while three quarters of current workers said they will need to work for pay while retired, only about 30% of retirees said they actually have worked for pay since retiring.

Craig Copeland, EBRI’s director of wealth benefits research, said the survey’s data points to a disconnect between workers’ expectations and retirees’ experiences; workers expected to stay in the workforce longer than retirees actually did, and far fewer retirees kept working than expected to do so.

“Workers, in many cases, are planning for a retirement that is not likely to happen,” Copeland said.