Stella
A recent nationwide survey reveals that many Americans are concerned about potential reductions in Social Security benefits during President Donald Trump’s current term.
This worry persists despite public assurances from Trump that these programs would remain untouched.
Public Concerns Amid SSA Job Cuts and Uncertainty
According to a NerdWallet survey conducted via The Harris Poll, 61% of Americans believe that Social Security benefits may be reduced under Trump’s administration. The anxiety is fueled by the elimination of 7,000 jobs at the Social Security Administration (SSA) as part of a broader government efficiency initiative.
While Trump previously assured the public that “Social Security will not be touched, it will only be strengthened,” the simultaneous announcement of SSA workforce cuts has raised questions about whether the administration’s actions align with its promises.
The Reality Behind the Numbers
Social Security is projected to be insolvent by 2033 unless Congress intervenes. At that point, the SSA would only be able to pay around 80% of scheduled benefits. To avoid such a scenario, legislative changes would be required—potentially involving:
- Adjustments to retirement age
- Modifications in benefit amounts
- Revisions to earnings taxes
Although Trump reiterated during his 2024 campaign that he wouldn’t “cut one cent” from Social Security or increase the retirement age, the public remains skeptical.
Medicare Benefits Also in the Spotlight
Concerns don’t stop at Social Security. The survey also indicates that 64% of Americans believe Medicare benefits might face reductions during the same period.
Interestingly, another 64% of non-retired Americans still think both Medicare and Social Security will be available to them by the time they reach 65.
This contradiction highlights the complex sentiment Americans have toward these safety net programs—hopeful yet anxious.
Experts Weigh In on the Situation
Michael Ryan (MichaelRyanMoney.com)
“Americans aren’t economists, but they can read the room. Cutting thousands of SSA jobs while promising to protect benefits doesn’t inspire confidence.”
Ryan explained that while there might not be direct monetary cuts, the shrinking administrative support could lead to processing delays, effectively becoming benefit denials for those unable to navigate the system.
Kate Ashford (NerdWallet)
“Most people under 65 still believe these programs will exist when they retire, despite current anxieties.”
Drew Powers (Powers Financial Group)
“Social Security cuts can take many forms—not just smaller checks. Lower COLA adjustments or staffing shortages that delay benefits also count.”
Kevin Thompson (9i Capital Group)
“Republicans often claim they won’t touch entitlements. But reclassifying expansions as ‘wasteful’ and rolling them back is a form of trimming.”
What the Future May Hold
For current retirees, the likelihood of losing benefits seems low. However, workers in their 40s and 50s may face tougher outcomes, including:
- Reduced trust in the system
- Changes in personal retirement strategies
- Increased urgency to save independently
Michael Ryan warned that if people lose faith in Social Security, they may begin to “panic save” or “panic spend“—both of which can have detrimental long-term effects on personal finance planning.
Despite official promises, most Americans remain concerned about potential Social Security and Medicare cuts under President Trump’s administration. With administrative layoffs, rising public anxiety, and the looming threat of fund depletion, the future of these programs seems uncertain.
While immediate impacts may not affect today’s retirees, younger generations must prepare for possible changes and plan accordingly.
FAQs
Is President Trump planning to cut Social Security benefits?
While Trump has stated he won’t cut Social Security, 61% of Americans surveyed believe reductions could still happen during his term.
How could Social Security be reduced without direct cuts?
Cuts may come in the form of reduced administrative capacity, causing delays and denials, or by tweaking COLA calculations that lead to smaller increases.
Will Medicare benefits also be affected?
According to the survey, 64% of Americans think Medicare could face cuts. Still, most people under 65 believe it will be available when they retire.