Nearly half of older American workers expect Social Security to be their main source of income after they retire, according to a new report. This is worrying retirement experts because Social Security was never designed to be the only source of retirement income.
The federal Social Security Administration says Social Security should not be treated as a person's only retirement income. On average, Social Security replaces only about 40% of the income a person earned while working, according to the Social Security Administration. This means many Americans may need other sources of money to maintain their lifestyle after leaving the workforce.
Experts say Americans need more than Social Security
Retirement experts generally recommend having multiple sources of income during retirement. These can include Social Security, personal retirement savings, investments, other income and, for some workers, a workplace pension.
“We would not recommend that anybody rely completely on Social Security for their retirement income,” said Jessica Johnston, senior strategist for economic wellbeing at the National Council on Aging, via USA Today. Johnston said Social Security alone is “more than likely to not be sufficient.” The concern becomes bigger as workers get closer to retirement because more older workers start expecting Social Security to become their main source of money.
Younger Americans generally do not expect Social Security to be the biggest part of their retirement income. But that expectation changes as people get older. The 2026 Retirement Trend Report from NFP found that only 12% of workers under age 35 expect Social Security to be their main retirement income source. That share rises to 22% among workers ages 35 to 54. Among workers 55 and older, the number jumps to 41%, showing how dependence on Social Security increases as retirement gets closer.
{{/usCountry}}Younger Americans generally do not expect Social Security to be the biggest part of their retirement income. But that expectation changes as people get older. The 2026 Retirement Trend Report from NFP found that only 12% of workers under age 35 expect Social Security to be their main retirement income source. That share rises to 22% among workers ages 35 to 54. Among workers 55 and older, the number jumps to 41%, showing how dependence on Social Security increases as retirement gets closer.
{{/usCountry}}“That’s way too high,” said Craig Copeland, director of wealth benefits research at EBRI. Copeland said perhaps only 10% of people could realistically rely mainly on Social Security. Even for those people, he said, they would not be living a good retirement.
Why $1 million retirement targets scare workers
Financial planners often tell Americans to build large retirement savings accounts so they can supplement Social Security. One common rule of thumb says workers should try to have 10 times their annual income saved in a retirement account by retirement. These numbers are usually based on surveys asking Americans how much money they believe they need for a comfortable retirement. One recent estimate put that retirement target at $1.2 million.
The NFP survey found that 69% of workers lacked confidence in their ability to achieve a comfortable retirement. More than 70% said their retirement savings were “off track.” The findings were released in July and came from a survey of 1,000 working adults who were involved in financial planning decisions for their households, according to NFP.
But do you really need $1 million to retire? Not necessarily
Some retirement experts disagree with the idea that most Americans need a seven-figure retirement account. They point out that millions of Americans retire with little or no retirement savings. Despite having relatively small savings, many of these retirees appear to be managing financially.
The typical retiree had only about $126,000 in household savings, according to a 2025 survey from the Transamerica Center for Retirement Studies. Other surveys suggest that only about half of retirees have any retirement savings at all. This means retirement outcomes are not determined only by whether someone has $1 million saved.
Despite relatively low retirement savings among many Americans, surveys show that a large majority of retirees consider themselves financially stable. An April 2026 Gallup poll found that 82% of retirees said they had enough money to live comfortably.
Social Security is already a major source of income for retirees
The Gallup survey also showed just how important Social Security already is for retired Americans. When retirees were asked about their major sources of income, 62% named Social Security. Only 27% said retirement savings were a major source of their income. This shows that Social Security is already playing a much bigger role in retirement income than personal retirement savings for many retirees.
“When I get out in the rural areas of America ... Social Security is a major income source for retirees, and they seem to make it work for them,” Jans said. At the same time, Jans said people should not expect Social Security to be their primary source of income, even though it is the primary source for many Americans.
Some retirees can depend on Social Security more than others
Not every retiree needs the same amount of savings. Lower-income workers may be able to depend more heavily on Social Security because the program is designed to replace a larger share of income for lower earners. Social Security benefits are progressive, meaning lower-income workers generally receive a larger percentage of their previous earnings back through Social Security than higher-income workers.
Social Security replaces about 90% of monthly income up to $1,286. The replacement rate falls to 32% for income between $1,286 and $7,749. For income above $7,749, the replacement rate falls further to 15%.
Housing costs can make a big difference
A retiree's monthly expenses also matter when deciding whether Social Security can cover most of their needs. Someone who owns a home and has already paid off their mortgage may have much lower monthly expenses than someone still making housing payments. This can make it easier for some retirees to live mainly on Social Security.
“If you are a lower earner who also owned a house and you’re not paying a mortgage anymore, you could probably get by mainly on Social Security,” said Copeland of EBRI, according to USA. So, whether Social Security is enough depends not only on the benefit amount but also on a retiree's housing and other expenses.
“We know that there are 9 million older adults that have an annual income of less than $20,000,” said Johnston of NCOA, via USA Today. She said the organization regularly hears from older adults who have to make difficult choices about basic expenses. These choices can include deciding whether to pay rent or pay for medication, Johnston said.
The bigger retirement lesson
Social Security can be an important part of a retirement plan, but experts warn against treating it as the entire plan. The amount a person needs to save will depend on factors such as income, housing costs, lifestyle, debt and other sources of retirement income.
A person who has a paid-off home and modest expenses may be able to depend more heavily on Social Security. But someone with high housing, medical or other living costs may need substantial savings in addition to Social Security. The key takeaway is that Social Security can provide a foundation for retirement, but for many Americans it may not be enough on its own.