Key Points
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New survey data from The Senior Citizens League indicates nearly three in four seniors depend on Social Security for at least half their income.
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A startling number of seniors get by on Social Security alone, even though the program was never intended to be recipients’ sole source of income.
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Rising prices have been a steady concern since the pandemic, and 94% of survey respondents reported feeling dissatisfied with the 2025 COLA.
There’s once again talk of cutting Social Security benefits. According to the nonpartisan, nonprofit Committee for a Responsible Federal Budget, if Congress fails to intervene, the Old-Age and Survivors Insurance (OASI) Trust Fund is projected to become insolvent in 2033. While Social Security benefits will still be paid, checks will be slashed by 23%.
Such a cut could disrupt any well-designed retirement plan, but it would be particularly challenging to those who depend solely on Social Security to cover their expenses.
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The number of retirees who count solely on Social Security
According to a new report from The Senior Citizens League (TSCL), 21.8 million seniors get by on Social Security alone. The TSCL study also revealed that 95% of all respondents believe reforming Social Security and Medicare should be a top priority for the Trump administration and Congress.
The average monthly Social Security payment is around $2,000 in 2025. A 23% reduction in benefits would trim that payment to $1,540. For a senior who relies on every dollar from the program, any cuts would be devastating.
It’s not as though housing and food are all that a senior has to pay for in retirement. There are also healthcare costs, utilities, transportation, pet care, and more. Despite programs aimed at helping seniors, there’s no way to know how much access the poorest seniors have in their areas.
Other findings
Given the anxiety surrounding potential cuts to Social Security, Medicare, and Medicaid, TSCL’s other findings are not surprising:
- Seniors believe 2024’s inflation was higher than the government estimate: When the 2025 Social Security cost-of-living adjustment (COLA) was announced in Oct. 2024, many seniors were surprised to learn that it would be only 2.5%. Based on their personal experiences, 79% thought inflation was 3% or higher.
- Of those surveyed, 96% want to see reforms in Social Security’s COLA calculations: The most supported method of reform was calculating COLA with an inflation index that better reflects seniors’ spending habits. Currently, COLAs are determined based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). However, TSCL (and 68% of the seniors surveyed) would like to see the COLA calculated based on the Consumer Price Index for Americans 62 years of age and older (CPI-E).
- Seniors want to fund stronger COLAs and benefits for future generations: Half of survey respondents believe removing the limit on income subject to Social Security payroll taxes will help preserve the program’s ability to pay out benefits. A smaller 31% support increasing the payroll tax rate.
Managing your budget on Social Security alone
If you’re a retiree who gets by on Social Security alone, or Social Security makes up a large percentage of your total income, here are some tips that may help you get the most out of your benefits:
- Create a realistic budget: It’s easy to believe that you can name each item in your monthly budget from memory, but expenses do fall through the cracks. This may include anything from birthday gifts for family to forgotten subscriptions. By carefully monitoring your finances for several months, you can see how much you’re spending on extras and build a budget that factors in all of your expenses.
- Prioritize: Once you have those expenses, rank them from most important to least important. Focus on building a budget around the essentials.
- Review your current Medicare plan: You may be able to find a lower price for the Medicare services you depend on. Make it a point to shop Medicare programs at least once a year.
- Take advantage of all Medicare has to offer: If your Medicare plan offers preventative services, take advantage of this opportunity to avoid costly treatments by detecting health issues early.
- Utilize resources for seniors: Call your utility providers to learn if they offer programs that assist with energy bills. Find out if there’s a senior center in your area; it not only allows you to socialize with other retirees but also may be a good resource for learning about helpful programs, such as meal services, health clinics, and transportation assistance.
For seniors who depend solely on Social Security, overcoming financial challenges requires strategic planning. However, utilizing all available resources and maintaining a proactive approach to budgeting and wellness may help.
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