Survey: Over half of retirees have cut discretionary spending to offset higher costs; 1 in 3 are now reducing essential spending

COLUMBUS, Ohio, Aug. 19, 2025 /PRNewswire/ -- As economic uncertainty intensifies, fears around global trade and tariff changes are adding to the financial pressure facing America's retirees. According to the 12th edition of the Nationwide Retirement Institute's Social Security Survey, half of retirees are terrified about the impact of tariff changes on their retirement income or savings, and 63% believe these rising tariffs will drive inflation beyond what Social Security Cost-of-Living Adjustments (COLAs) can cover.

These concerns come at a time when many current Social Security recipients are already struggling to make ends meet: 61% say missing even half of a Social Security payment would leave them unable to survive financially, and 55% say their benefits don't cover their basic needs in retirement. As a result, many have been forced to make tough financial trade-offs, with 52% cutting back on discretionary spending, 31% reducing essential expenses, and another 31% relying more heavily on their savings or retirement accounts.

"Today's retirees are facing economic headwinds that feel more unpredictable and immediate than ever before," said Tina Ambrozy, Head of Strategic Customer Solutions at Nationwide. "While it's difficult to predict the long-term impact of recent shifts in U.S. trade policy, with inflation on the rise and new tariffs adding to economic uncertainty, more Americans are worried about whether Social Security will be enough to support them in retirement. These findings show that many Americans are just one disruption away from serious financial strain. Now more than ever, people need guidance and a personalized plan to help protect their income and secure a more stable future."

Lack of Faith in the Future of Social Security

This sense of instability isn't limited to today's retirees. Across the broader population, concerns about the future of Social Security are widespread and deeply felt. More than four in five Americans (83%) express concern about the long-term viability of the program, and 74% worry that Social Security will run out of funding in their lifetime. For younger generations, skepticism is even more acute: 38% of Gen Z (age 18-28) respondents and 34% of millennials (age 29-44) believe they won't receive a single dime of the benefits they've earned.

A False Sense of Security: Understanding the Knowledge Gap

While most Americans (74%) believe they can manage their Social Security benefits without the help of financial professionals, the data suggest this confidence may be overstated, as only 38% of Americans say they are actually confident in their knowledge of the program.

In fact, just 21% of all respondents were able to correctly identify the age at which they are eligible to receive full Social Security benefits. When asked to respond to 15 true-or-false questions about Social Security, the average respondent knew only eight correct answers.

Adding to the challenge, nearly one in five (19%) current Social Security recipients report that it has become more difficult to access or manage their benefits in 2025, signaling a system that's not only misunderstood, but also increasingly complex to navigate without professional help.

Financial Professionals Can Bridge the Gap

To manage this complexity, Americans are open to receiving help from financial professionals as they plan for various income streams in retirement. The survey found that 58% of U.S. adults are interested in speaking to a financial professional to help them manage or navigate potential cuts to Social Security benefits in the future.

Nearly four in five individuals (78%) who currently work with or plan to work with a paid financial advisor say they would be likely to switch to another paid advisor if theirs couldn't help them maximize their Social Security benefits.

Taxes are another key area of concern: more than 7 in 10 (73%) want to learn about how Social Security is taxed, as 54% admit they didn't account for the impact of tax rates on their retirement income and 58% say they're afraid of how taxes could affect their financial futures.

The message to financial advisors is simple: prioritize discussions about Social Security and post-retirement taxes early.

"This year's survey makes one thing clear: confidence doesn't always equal preparedness," added Ambrozy. "Too many Americans are navigating retirement decisions with limited understanding of how Social Security actually works—at a time when benefits are under pressure and the system itself is growing more difficult to manage. The good news is that people are open to learning and taking action. Financial professionals have an opportunity—and a responsibility—to step in, close these knowledge gaps, and help Americans make the most of the benefits they've earned."

Nationwide offers a variety of resources to help. The Nationwide Social Security 360 Analyzer® can help financial professionals assess a client's goals to better advise on the optimal time to claim Social Security. To learn how to optimize Social Security benefits, visit www.Nationwide.com/SocialSecurity. Financial professionals can visit www.Nationwide.com/SimplifySocialSecurity.

For more insights on this survey data, see the Advisor Advocate Blog or view this infographic.

Methodology

The research was conducted online in the U.S. by The Harris Poll on behalf of Nationwide among 1,812 adults age 18+ who currently receive or expect to receive Social Security ("national sample"), including 301 Gen Z (age 18-28), 504 millennials (age 29-44), 505 Gen Xers (age 45-60), and 502 Boomers+ (age 61+).  The survey was conducted June 2-17, 2025.

Data are weighted where necessary by age by gender, race/ethnicity, region, education, marital status, household size, household income, and smoking status to bring them in line with their actual proportions in the population. To ensure the national sample was representative, the data were initially weighted by generation (Gen Z 18-28, millennials 29-44, Gen Xers 45-60, and boomers+ 61+) and then combined into a total age 18+ group.

Respondents for this survey were selected from among those who have agreed to participate in our surveys. The sampling precision of Harris online polls is measured by using a Bayesian credible interval. For this study, the sample data is accurate to within + 3.0 percentage points using a 95% confidence level. This credible interval will be wider among subsets of the surveyed population of interest. All sample surveys and polls, whether or not they use probability sampling, are subject to other multiple sources of error which are most often not possible to quantify or estimate, including, but not limited to coverage error, error associated with nonresponse, error associated with question wording and response options, and post-survey weighting and adjustments.

About The Harris Poll

The Harris Poll is one of the longest running surveys in the U.S. tracking public opinion, motivations and social sentiment since 1963 and is now part of Harris Insights & Analytics, a global consulting and market research firm that delivers social intelligence for transformational times. We work with clients in three primary areas: building twenty-first-century corporate reputation, crafting brand strategy and performance tracking, and earning organic media through public relations research. Our mission is to provide insights and advisory to help leaders make the best decisions possible. To learn more, please visit www.theharrispoll.com.

About Nationwide
Nationwide, a Fortune 100 company based in Columbus, Ohio, is one of the largest and strongest diversified financial services and insurance organizations in the United States. Nationwide is rated A+ by Standard & Poor's. An industry leader in driving customer-focused innovation, Nationwide provides a full range of insurance and financial services products including auto, business, homeowners, farm and life insurance; public and private sector retirement plans, annuities and mutual funds; excess & surplus, specialty and surety; and pet, motorcycle and boat insurance.

For more information about Nationwide and Nationwide's ratings, visit www.nationwide.com or Company Ratings -- Nationwide.

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This material is not a recommendation to buy or sell a financial product or to adopt an investment strategy. Investors should discuss their specific situation with their financial professional.

This information is general in nature and is not intended to be tax, legal, accounting, or other professional advice. The information provided is based on current laws, which are subject to change at any time, and has not been endorsed by any government agency.

Nationwide and The Harris Poll are separate and non-affiliated companies.

Nationwide Investment Services Corporation (NISC), member FINRA, Columbus, OH. Nationwide Retirement Institute is a division of NISC.

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Contact:
Charley Gillespie
(614) 249-6349
charley.gillespie@nationwide.com
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