Concerns Over Rising Tariffs and Inflation Weigh on American Retirees

Worries Mount for Retirees Amid Rising Costs

As economic uncertainty deepens, many retirees in America are becoming increasingly anxious about their financial futures. Recent findings from the Nationwide Retirement Institute's 12th edition of the Social Security Survey reveal that over half of retirees are cutting discretionary spending to cope with soaring costs, while one in three are even reducing essential expenses. With numerous economic factors at play, the fears surrounding rising tariffs and inflation are palpable among this demographic.

According to the survey, a striking 50% of retirees express grave concerns about how tariff changes might impact their retirement income and savings. They are hardly alone in their worries; a significant 63% are convinced that rising tariffs will escalate inflation beyond what Social Security's annual Cost-of-Living Adjustments (COLAs) can alleviate.

The situation is dire for many current Social Security recipients. More than 60% report that missing even a portion of their Social Security payments would severely challenge their ability to make ends meet. Alarmingly, 55% of respondents indicate that their Social Security benefits do not adequately cover their basic living expenses in retirement. This has compelled many retirees to make difficult financial choices: 52% have slashed discretionary spending, while 31% have reduced essential costs, with an additional 31% relying more heavily on their savings and retirement accounts to stay afloat.

The Broader Impact on Social Security

The anxiety felt by today’s retirees is not an isolated issue; the broader American population shares similar sentiments regarding the future viability of Social Security. An overwhelming 83% of Americans express concern for the long-term sustainability of the program, and 74% are anxious that it may deplete its funding during their lifetime. Among younger generations, skepticism grows even more intense: roughly 38% of Gen Z (ages 18-28) and 34% of millennials (ages 29-44) fear they will not receive any of the benefits they have worked hard to earn.

Misconceptions and Gaps in Understanding

While a significant portion of the population believes they can manage their Social Security benefits without professional guidance (74%), the findings suggest their confidence may be misplaced. Only 38% expressed actual confidence in their knowledge of the program. Alarmingly, only 21% of respondents could accurately identify the age at which they qualify for full Social Security benefits. When participants were tested with 15 true-or-false questions regarding Social Security, the average correct answer rate dwindled to just eight.

Moreover, nearly 20% of current Social Security recipients reported facing increased difficulty in accessing or managing their benefits as of 2025. This complexity illustrates the critical need for professional guidance in navigating what can be a convoluted system.

A Call for Professional Assistance

Acknowledging these complexities, many Americans are more than willing to seek help from financial professionals. The survey shows that 58% are interested in consulting with a financial advisor to navigate potential cuts to Social Security benefits in the future. Furthermore, a remarkable 78% of individuals currently working with or intending to work with a financial advisor express readiness to switch to a different advisor if theirs cannot effectively assist in maximizing their Social Security benefits.

Addressing concerns about taxes, which weigh heavily on many retirees' minds, the survey indicates that over 70% are eager to learn more about how Social Security is taxed. Many retirees failed to consider how tax rates could impact their retirement income, with 54% admitting they didn’t account for these factors when planning and 58% expressing fear about how taxes may affect their financial stability.

Building a Secure Future

The findings from this survey highlight that while confidence in one’s understanding of Social Security benefits is prevalent, genuine preparedness is often lacking. Tina Ambrozy, Head of Strategic Customer Solutions at Nationwide, notes, “Too many Americans are navigating retirement decisions with a limited understanding of how Social Security operates—even as the system itself is becoming increasingly challenging to manage.”

As a response to these challenges, Nationwide offers various resources, including the Nationwide Social Security 360 Analyzer®, designed to help financial professionals assess clients' goals and provide tailored advice on the optimal timing for claiming Social Security benefits.

In summary, the economic landscape is shifting in ways that directly impact the financial stability of retirees. With growing fears surrounding inflation and tariffs, along with significant knowledge gaps about Social Security, it has become crucial for individuals to seek informed guidance. The pathway to a secure retirement doesn’t have to be traveled alone; with the right support, retirees can enhance their understanding and management of their Social Security benefits for a promising financial future.