Experts believe Washington 'must break its promise on Social Security' to protect it from 'imminent insolvency'

Core Insights - The Allianz's 2025 Annual Retirement Study reveals that 62% of Americans are not saving enough for retirement, with 64% expressing more concern about running out of money than death [1][6] - A significant portion of older Americans, 58%, rely on Social Security as a major source of retirement income, indicating its critical role in financial security for retirees [2][5] - The Social Security retirement trust fund is projected to deplete by 2033, with the disability trust fund following in 2034, raising concerns about future benefit reductions [7][9] Social Security Dependency - Over 73.9 million Americans benefit from Social Security, with 52.6 million being retired workers and 7.2 million disabled workers, funded by a 12.4% payroll tax [3][4] - 58% of retired Americans consider Social Security a major income source, highlighting its importance in retirement planning [2][5] Financial Outlook and Reforms - Without reforms, retirees could see a reduction to 77% of their full benefits once the retirement trust fund is depleted, while disability benefits may drop to 81% [9][10] - Proposed reforms include raising the retirement age from 67 to 69 and increasing payroll taxes by 3-4 percentage points to address the funding shortfall [11][12] - The urgency for reform is emphasized, as delayed actions have worsened the financial outlook for Social Security [4][5] Impact on Future Retirees - The potential reforms could disproportionately affect lower-income workers and those in physically demanding jobs, who may struggle to work longer [13][18] - The average Social Security check is approximately $2,002.39, meaning a 77% reduction would leave retirees with about $1,542 [16][19] - Individuals are encouraged to take charge of their retirement savings, maximizing tax-advantaged accounts and preparing for various outcomes regarding Social Security benefits [18][19]