Breaking News: Must Take Note : Most Americans Have No Idea Social Security Is Going to Run Out

The vast majority of Americans have no idea that Social Security is set to run out of money in just nine years, a new report found.

According to a Peterson G. Peterson Foundation survey, only 30 percent of Americans said they knew that Social Security will need to cut its benefits by 21 percent due to the ongoing funding crisis.

“It’s not surprising to learn most Americans have no idea about cuts to Social Security,” Alex Beene, a financial literacy instructor at the University of Tennessee at Martin, told Newsweek. “Most operate under the assumption the Social Security program will always be there for them and fully funded to provide for their financial needs later in life. The stark reality is cuts will have to be made to keep the program operational, and millions of Americans will be affected.”

A sign outside a U.S. Social Security Administration building in Burbank, California. Many Americans remain unaware that Social Security is set to run out of money in roughly 10 years. ALERIE MACON/AFP VIA GETTY IMAGES
As more baby boomers retire and cash their Social Security checks, the program is experiencing a looming financial problem. Baby boomers are living longer than previous generations and there aren’t enough younger current workers to keep the program afloat.

As a result, experts have predicted that the average couple will see a cut of $17,000 in nine years if lawmakers don’t pass reforms to the program.

After learning this, survey respondents came to a near universal agreement at 97 percent that it’s important for elected leaders to strengthen Social Security.

The May 2024 Trustees Reports confirmed that Social Security is on a rapid path to insolvency, and today’s new survey shows voters want leaders to prioritize solutions to prevent devastating cuts to this essential program,” Michael A. Peterson, CEO of the nonpartisan Peterson Foundation, said in a statement.

These results demonstrate that, while there is more work to do to educate Americans about Social Security’s unstable finances, there is overwhelming support for courageous leaders to take action once the current reality is understood. Voters understand that ‘not touching’ Social Security is not an option because automatic cuts are unacceptable and waiting only makes the problem more costly and difficult to solve.”

Social Security launched as an old-age insurance plan in 1935 and has since expanded to help survivors and disabled workers, as well.

Every year, payment amounts change based on the cost-of-living adjustment, which takes into account inflation for the average urban wage worker. In recent years, it has become clear that the program is heading toward insolvency, though.

The current payroll tax that employees pay toward the program will not be enough to fully sustain baby boomers’ benefits in just under a decade, and Gen X, millennials and Gen Z’s retirement futures are even more up in the air.

Members of Congress have suggested many options to solve the funding crisis, but so far there has been no consensus on what to do. Some say cut benefits now to save more money later, while others want to increase the payroll tax or raise the retirement age.

“Any cut to Social Security benefits is going to be met with negativity,” Beene said. “Taxpayers spend their entire working lives paying into the system and seeing countless dollars deducted from their paychecks with the hope it will be waiting on them down the line. In this situation, knowledge is power. Voters have to know about cuts in order to vote accordingly and have their voices heard to legislators who can make a change.”

A recent survey from MassMutual found that 40 percent of near-retirees said Social Security benefits will be their biggest source of income in retirement. And even with this, more than one-third said their retirement income would not be enough to last more than 10 years.

“Seniors or those nearing their golden years are starting to get a bit apprehensive about would they have enough to make it through retirement,” Nadia Vanderhall, a financial planner at The Brands and Bands Strategy Group, previously told Newsweek. “Even though people can be within retirement for over 30 years, Americans are living longer while things are becoming more expensive.”

Still, not all finance experts remain convinced that Americans are willing to make the necessary financial sacrifices now, either by higher payroll taxes or benefit cuts, to keep the program afloat in the future.

“Americans realize that this needs to be addressed and quickly,” Kevin Thompson, a finance expert and founder and CEO of 9i Capital, told Newsweek. “The question remains, are Americans today willing to ‘bite the bullet’ so to speak and take a few years of economic pain for long-term gain? The answer is likely no.