As Trust Fund woes approach, expected reliance on Social Security increases

As the most recent report from the Social Security Board of Trustees confirmed, Social Security is still on track toward insolvency–for beneficiaries, this is certain to come with brutal cuts to monthly benefits without immediate intervention.

The Trustees’ most recent calculations estimate as much as a 23% cut across the board will be necessary for retirees if nothing is done to alter this course before 2034.

This is especially dangerous for the 33% of American seniors relying on Social Security for 90% or more of their income. To put that into perspective, a retiree receiving the average Social Security benefit of $1,360 could see her benefits hacked down to $1,047.20–hardly enough to cover medical costs let alone basic needs.

But as a new article over at the Motley Fool explains, despite these harrowing projections, recent polls show more and more Americans of all ages expect to rely on Social Security as heavily or more heavily than current retirees in the future.

A new Gallup poll found since 2007:

• 43% of Americans age 50-64 expect Social Security to be a “major” source of their retirement income (up from 37%)
• 28% of Americans age 30-49 expect Social Security to be a “major” source of their retirement income (up from 25%)
• And 25% of millennial Americans expect Social Security to be a “major” source of their retirement income (up from 13%–nearly doubled)

Even as the Social Security solvency crisis gains greater public attention and financial experts caution Americans to focus more of our energy on making independent preparations for retirement, we are investing less, saving less, and increasing our reliance on Social Security to get us through retirement.