A majority of Americans believe President Donald Trump will cut Social Security benefits during his current term, according to a new report from NerdWallet.
Newsweek has reached out to the Social Security Administration (SSA) for comment via email.
Why It Matters
Social Security benefits are anticipated to run out of funds for full payments by around 2033, at which point the SSA would likely only have enough to pay out roughly 80 percent of promised benefits.
To change this, Congress would need to act, either changing rules around payment amounts, retirement age, earnings tax or some mix of measures.
What To Know
Trump previously vowed not to cut Social Security benefits when the newly created Department of Government Efficiency (DOGE) began making changes to the SSA, including a decision to slash 7,000 jobs from the agency.
“Social Security will not be touched, it will only be strengthened,” Trump said at the time.
He also said during his 2024 presidential campaign he wouldn’t “cut one cent” from Social Security or raise Americans’ retirement age.
However, 61 percent of Americans said they expect Social Security benefits to be cut during the current administration in NerdWallet’s new survey of more than 2,000 U.S. adults conducted online by The Harris Poll.
“Americans aren’t economists, but they can read the room,” Michael Ryan, a finance expert and the founder of MichaelRyanMoney.com, told Newsweek. “When you see government efficiency drives targeting every agency, including the one that manages your retirement, anxiety is rational.”
According to the new report, another two-thirds of Americans (64 percent) also think Medicare benefits will be reduced under the current administration.
On the flip side, two-thirds of Americans (64 percent) who aren’t yet at retirement age believe Medicare and Social Security will be around when they turn 65 years old, the survey shows.
Ryan said for most Americans, the concern is less about direct benefit cuts but more about potentially administrative cuts, leading to more benefit denials on a larger scale.
“It’s not necessarily direct benefit cuts, but death by a thousand administrative cuts,” he said. “When you shrink the agency workforce while demand for services increases… Benefit delays become benefit denials for many Americans who can’t cut through the bureaucratic maze.”
What People Are Saying
Ryan told Newsweek: “The 61 percent figure isn’t surprising when you look at the mixed signals coming from Washington. While the admin says it won’t cut Social Security benefits, they’re simultaneously cutting 7,000 SSA jobs. That’s 12 percent of the workforce that actually processes those benefits.”
Kate Ashford, a personal finance expert at NerdWallet, said in the report: “…Even though many Americans are worried that both Medicare and Social Security benefits could be cut under the current administration, most people under 65 think these programs will be there when they retire. So while there’s anxiety, many people still believe these safety nets aren’t going anywhere.”
Drew Powers, the founder of Illinois-based Powers Financial Group, told Newsweek: “When people hear ‘Social Security cuts’ they may only think of a decrease in the dollar amount on their check, but Social Security cuts come in many shapes and sizes. If the index used to calculate the annual cost-of-living adjustment (COLA) does not reflect a senior citizen’s actual spending and results in a lower increase, then that is a cut in Social Security. If there are not enough employees at the SSA to answer questions and process claims and that results in a delay in receiving benefits, then that is a cut to Social Security.”
Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek: “Republicans have said time and again they’ll never touch entitlements. Yet history shows that’s not entirely true. By labeling certain provisions as ‘wasteful,’ they’ve already rolled back Biden-era expansions while still claiming the core promise is intact.”
What Happens Next?
While today’s retirees are likely protected from any major cuts, workers in their 40s and 50s could experience larger ramifications of changes within the Social Security system, Ryan said.
“It’s about workers in their 40s and 50s who are watching this unfold and thinking, ‘Maybe I need to save more because I can’t count on this system working smoothly when I need it,’” Ryan said. “That’s actually the more dangerous long-term impact. When people lose faith in Social Security, they either panic save or panic spend. Neither response is financially optimal.”
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