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.