Loss of Trust in Social Security Jeopardizes American's Retirement Plans
RELAB POLICY NOTE
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This policy note is part of SCEPA’s “Tracking the Retirement Crisis” series. This series was made possible in part through the generous support of The James Family Charitable Foundation and the Social Security Administration (RDRC23000009-01-00 and RDRC23000009-02-00). We are deeply grateful for their commitment to supporting our work and advancing research in this field.
Elevator Pitch: This third report in the SCEPA Tracking the Retirement Crisis series shares insights from in-depth interviews conducted in April and May 2025.1 Previous trackers have shown that people nearing retirement are more distrustful of Social Security and that retirees are dually vulnerable due to the increasing volatility of American retirement support. By listening to people, we can look behind these phenomena and understand how Americans are responding to an escalating—but by no means new—retirement crisis. These conversations give us insight into how threats to Social Security in the first months of 2025 affect people in diverse American communities. If lawmakers take action to shore up the Social Security Administration, this will help restore trust in retirement benefits and stabilize people’s approach to retirement planning.2
“That front” is Social Security, and Stephen, a high-earner in his mid-60s living in the Northeast, has decided to start claiming Social Security retirement benefits earlier than planned. Sharing that he feels “very insecure” as political leadership issues confusing, concerning announcements on the future of Social Security, Stephen has “flipped the switch.” After talking with friends who share his worries, he “just woke up one day and I said, ‘That’s it. I’ve decided I’m gonna take it.’”
Halfway across the country from Stephen, in a mid-size Midwestern city, Kathy has also chosen to apply for her Social Security “before they cut it off.” Usually an optimistic person, Kathy, who is in her mid-60s and working as a medical assistant, says she’s adopted a new level of cynicism. “You just have to protect yourself . . . it’s not in my nature to think about worst scenarios, but I guess it’s being more of a realist.” Kathy was hoping to claim Social Security at 70 and receive the full benefit. But in 2025, conversations with friends took on a new urgency: “Oh my god, don’t wait. They’re [the government] going to take it, so you better apply now!”
Stephen and Kathy are two of the 276,000 additional retirees who claimed Social Security in the fiscal year through April 2025, an increase of 13% over the same period in 2024, according to the Urban Institute (Smalligan & Boyens, 2025). Social Security Administration (SSA) data on pending applications for benefits shows a huge upward swing since September 2024, with another considerable increase since the inauguration in late January 2025 (see Figure 1). There are multiple factors that likely contribute to this increase, but consensus is that rising anxiety over Social Security’s future plays a significant role. Then acting commissioner of the SSA, LeLand Dudek, was quoted in March saying: “Fear mongering has driven people to claim benefits earlier because they’re afraid they’re not going to claim benefits at all” (Bernard, 2025). Analysis in the press points to the President and Elon Musk’s claims of widespread fraud in Social Security, threats against other public programs like Medicare and Medicaid, and the firing of many SSA staff feeding the flames of concern (Carpenter & Tergesen, 2025; De Vise, 2025; Hager, 2025). An April 2025 Gallup poll shows public concern about Social Security at a 15-year high (Brenan, 2025).
Social Security Benefits Claims Pending by Month (Dec 2023 – April 2025)
Source: SSA Performance at-a-glance data for the fiscal year through April 2025. (Social Security Administration [SSA], 2025)3
Older Americans are Losing Confidence in Social Security
While Stephen and Kathy represent Americans who have actively responded to these fears by claiming Social Security early, their uncertainty and distrust of the Social Security apparatus is widely shared. Our interviews highlight a broad and growing unease surrounding Social Security that holds across class divisions, racial and ethnic groups, and geographies. In our conversations with retirement-age folks across the country, people echoed worries about rising costs, strained budgets, and increasing instability. They share that Social Security payments won’t be enough to make ends meet, and many believe those payments may cease to exist.
- As a volunteer chaplain for her Church community in the South, Emily sees that “so many people are being adversely impacted because there’s so much misinformation, or it changes every day.” While she feels less concern for her own ability to claim (she’s received Social Security for several years), she “hear[s] it at everywhere I go, with the community that’s around us, of the stress, the uncertainty . . . am I going to have to go back to work? So, that was not the case before this last election. You didn’t hear that.”
- In a large Northeastern city, Adam is already claiming Social Security retirement benefits, but says that it doesn’t feel guaranteed. Facing housing insecurity and hoping to start working again, he never felt like Social Security was that secure. But now he says, “you know all of a sudden, I don’t even feel like I have Social Security. I feel like tomorrow [The President] could say ‘Hey, No! We’re not gonna give anyone Social Security.’”
- Alanna commutes between two states for a new job. She returned to work for multiple reasons, including looming payments from an outstanding student loan. While collecting Social Security in her mid-60s was always part of her plan, she now feels it’s not assured. “I worked all these years. I put into Social Security, and if they privatized it, what’s going to happen there?” In the midst of that uncertainty, she feels she can “have a certain level of control by going back to work.”
The Retirement Crisis is not Equally Distributed
From these interviews, it is apparent that people feel the current moment is precarious and acute. But retirement security has been elusive for many Americans for a long time (Phillips et al., 2025). SCEPA’s own research highlights that systemic inequalities in work reduce access to retirement plans. This means that many already disadvantaged workers experience a drop in living standards as they age (Morrissey et al., 2022). Turning to our interviews places the current American retirement crisis within an ongoing and unevenly distributed emergency. While the potential disabling of Social Security is a concern across demographics, it takes a different shape for people who are already precarious—folks who experience insecurity, loss of control, and unpredictability on a daily basis (Precarity Lab, 2020).
- Yusuf, who is now 60, has been incarcerated for much of his adult life and knows that “with my work history . . . there ain’t a whole lot of investment in that Social Security Plan.” He’s applied for Social Security Disability but is banking on founding his own non-profit as a source of income. He jokes that he “would probably have to work until I’m 100 years old to get something from Social Security. If it’s still around!” Yusuf’s concerns are rooted in shouldering responsibility for his own stability, rather than potential threats to benefits. “Because everything has to come out of my pocket . . . I focus on what’s actually in my pocket.”
- Similarly, Janice says, “I guess I hear about Social Security in the news headlines with the Trump takedown of benefits . . . it’s like a bad joke.” But in her early 60s and struggling to find affordable housing and a job, she says, “I’m keeping my head above water.” Her biggest worry is accessing services; she spends her time navigating the labyrinths of healthcare, housing, and job searches, always feeling like she’s getting “this total run around.” Like Yusuf, she feels she is responsible for providing for herself through work.
Other interviewees share that, while they worry about the stability of Social Security, other actions the government has taken since January 2025 put more immediate pressure on their lives. Alexa, 63 and working at a non-profit in the suburban Northeast, thinks Social Security will likely hold for her generation. But her husband works for a federal agency, and they’re concerned about his job security and losing healthcare benefits he’s currently entitled to. We hear from participants that they’re worried about losing their Medicaid, about the rising costs of basic necessities, and the depletion of 401(k) plans—many feel vulnerable to a potential new shock.
Through our interviews, we see that changes to Social Security are only one of many overlapping factors creating anxiety for retirement-age Americans. While for some, threats to retirement benefits are their main concern, most see the loss of Social Security in the larger picture of stressors and insecurities.
63 Million Americans Face Retirement Fragility
This is part of an ongoing pattern facing the “edge cohort”—a group of 63 million Americans between the ages of 50–64 with low savings and often without pensions (Morrissey et al., 2022). This group is continuing to work for as long as they can, not by choice or to earn extra income, but out of necessity to support themselves and their families. The result is that a large number of Americans claim Social Security Benefits while also employed (Ghilarducci, 2024).
In our conversations with older Americans, most said they were either already working while receiving Social Security benefits or planned to continue working after claiming. It was even an important part of their calculations on when to claim. Kathy, for example, claimed early on the understanding that she could continue to work “as much as I want”; Janice worries that claiming would mean limiting her future job opportunities; Rachel had always planned to work while receiving benefits, but she worries about exceeding the income limit and having to repay a portion of her benefits.
Participants did not just expect to work while claiming Social Security, they shared a belief that, to have any kind of security as they age, they will need to push themselves to work as long as they can.
- Stephen has claimed his Social Security but is still working and earning a high salary. Regardless, his “retirement plan is to work until I die.”
- Lan is struggling with significant debt and rising rent in a large city. She shares that “it’s just pretty bad after I retired because Social Security is just so little, you can barely pay your rent.” She is now looking for a job and, while she enjoys her work, is hopeful she can work for only a few more years and then fully retire . . . again.
While this narrative comes up over and over, it is disproportionately the case for lower earners like Janice and Lan. When we ask Janice what she will do if she doesn’t find a new job, she scoffs and responds, “there is no plan B.”
Interview data reveals that new threats to retirement security are compounding an already unstable situation—one in which many Americans have long been struggling. Understanding how people view changes to Social Security, especially in relation to work and other pressures, highlights a shared concern: their financial futures feel uncertain.
Facing Uncertainty, Americans Rely on a Patchwork of Solutions
Understanding how Americans perceive the current retirement crisis through interviewees’ experiences also offers insight into how Americans draw on their available resources for support. People we spoke with pulled together a diverse array of financial resources and opportunities, family and community support, and formal and informal learning networks to help them navigate uncertain futures. These mechanisms for forging security in insecure times correlate with work in the social sciences on the “extraordinarily emotional process” (Cooper, 2014) of creating stability for Americans and the many ways that people build on their networks to meet their needs (Stack, 1983; Sherman 2017; Zaloom 2019, Zaloom & James, 2023).
Interviewees described how they piece together financial resources, often by planning to stay in or return to full-time work and by relying on support from friends and family.
- Rachel has two part-time jobs and for many years has managed her needs between an income and a complex network of loans—from the bank and from friends and family. With this crucial help from her social network, recent income from property sales, and the stability of cooperatively owned housing, Rachel has more security now than ever before. While she could have made ends meet on Social Security and a small pension (“it could have sufficed, and then if things got bad, I would have taken a roommate”), she is relieved to have different sources of income and a community to call on. Still, she’s hedging her bets and continuing to work. She’ll claim Social Security when she reaches the full benefit.
- Alanna was active in her 401(k) plan when she was a full-time social worker. But she chose to draw on her account during the COVID-19 pandemic, using the funds to support family members and to buy her first home. Now she’s going back to work while she feels “like I still have the energy to be in the field.” Alanna also thinks about Social Security in terms of work, saying, “hopefully Social Security is here, so that I could utilize Social Security to supplement my income.” With a large and supportive family network, secure housing, and a new job, Social Security is only one piece of Alanna’s plan.
- Yusuf’s plans to open his non-profit are a couple years down the road; right now, he is a full-time student. He narrates how he pays attention to and uses scholarships, grants, and institutional support. “I qualify for everything that they have to offer . . . so whenever they create a grant, I’m in the building.” While he feels his own Social Security will be negligible, he has recently applied for Social Security Disability because of severe back pain. Additionally, he shares that he has a close network of friends and colleagues who work in non-profits from whom he is learning the ropes for his own organization.
In addition to pulling together diverse sources of income and support, many interviewees are more actively sharing information with each other about retirement and Social Security. Despite comments about generational prohibitions on discussing money or the potential for financial conversations to be “embarrassing,” interviewees shared that they were speaking more with friends, family, and even joining more formal spaces to think collectively about retirement in uncertain times.
- Returning to Stephen and Kathy, who claimed Social Security early, both came to that decision through conversations with friends. Kathy in particular shared that she has a network of friends, colleagues, and family whom she turns to for “informational support and opinions.” Recently, she finds she is interested in learning more from friends who have already retired.
- Olivia spent years working in healthcare, and after a major surgery is now on Social Security Disability. She and her husband, Joseph, have learned a lot about Social Security over the years, including while caring for older parents and Olivia’s sister. Olivia has “some insight” into these opaque systems, “so a lot of what I am doing for the seniors [in my community] is helping them to navigate . . . their finances and the healthcare system.” Olivia and Joseph have even joined organizing forums like AARP and their local professional organization, where they talk about healthcare and Social Security on a national level.
- Janice uses social media, word-of-mouth, and professional networks to find resources and pass them on to others. Sharing a recent experience with a healthcare provider who took the time to help her with "connecting the dots," Janice notes the power of having someone help her make sense of disparate and confusing services. She’s also found community with a group of elders who attend a weekly job search strategy meeting. She thinks “it’s a better way to navigate because we all share these kinds of strategies, good, bad, and different.” Importantly for her, “it is a team effort, and I’m working with a decent team for outcomes.”
Americans Want to Plan for Retirement, but They Need Stability
We’ve looked at how Americans understand an ongoing and worsening retirement crisis. Our interviewees are telling us that they need multiple sources of income, material resources, and emotional support to manage. Qualitative research—such as interviews and focus groups—allows us to think about the national loss of trust in Social Security and the uncertainty of retirement in America through the day-to-day experience of retirement-age Americans.
Recent national surveys backup this qualitative data: Americans are deeply worried about their financial security in retirement. This concern cuts across age, income, and political lines.
At SCEPA, we’ve reviewed major retirement surveys and found that older workers, especially those nearing retirement, report the highest levels of concern about retirement security. Many worry their savings are inadequate and doubt they’ll be able to work long enough to make up for the gap, particularly as Social Security won’t suffice (Ghilarducci & Manickam, 2024). According to the National Institute on Retirement Security (NIRS), 79% of Americans agree that the country is facing a retirement crisis. That’s up from 67% just four years ago. And more than half (55%) say they don’t believe they’ll achieve financial stability in retirement. Perhaps most telling, 87% want Congress to act now to stabilize Social Security, not kick the can down the road (National Institute on Retirement Security [NIRS], 2024). A recent Pew Research Center study shows broad, bipartisan opposition to any cuts to Social Security (DeSilver, 2025).
The people we interviewed are afraid of future benefit reductions—some are claiming Social Security early because they fear future cuts—and they want elected officials to protect Social Security. They see their retirement futures becoming more fragile. Many interviewees said the current retirement system fails ordinary Americans, and their grim view deepens as their mistrust in Social Security’s future grows. They also described the creative ways they cobble together resources and relationships to build stability on their own in the face of a broken system.
Our research shows that people want to plan for retirement, and they care deeply about the shape of their financial futures. However, they are confused about which way to turn and what they can expect from a system in breakdown. At the same time, Americans overwhelmingly support protecting and expanding the Social Security program, a point that lawmakers should pay attention to.
Broken government promises and shaky financial markets destabilize household economics and national politics. If lawmakers take action to shore up the Social Security Administration, this will help restore trust in retirement benefits and stabilize people’s approach to retirement planning.
End Notes
1 These interviews have been conducted as part of a study exploring how holding student loans impacts retirement planning and social security claiming. All of the interviewees quoted in this piece are student loan holders. While student debt conditions these participants’ approach to retirement, we must understand that their experiences of navigating retirement together with their debt is not a unique position or one that gives them a singular experience of preparing for retirement. Being a student loan holder is one example of the many ways that retirement-age Americans are expected to plan for life after work while managing complex financial and personal circumstances.
2 Names of interviewees have been changed for confidentiality.
3 This graph is taken from the Social Security Administration’s performance data on “processing time for retirement, survivor, and Medicaid benefits.” The SSA performance data uses internal SSA data to track wait times at field offices, 800 number performance, and the number of currently pending claims and their processing time nationally. The chart was originally published on March 19, 2025, and has been updated in the first week of each subsequent month. The graph presented in this paper was last updated on May 1, 2025 with data current through the end of April 2025.
References
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