55% of Advisors Expect Social Security or Medicare Cuts: What To Know
Millions of Americans depend on Social Security and Medicare in retirement, but questions about the long term finances of both programs continue to grow.
The Social Security Administration projects the Old-Age and Survivors Insurance Trust Fund and Medicare's Hospital Insurance Trust Fund will be depleted in 2033.
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Against that backdrop, a recent Nationwide survey found that 55% of financial advisors expect Social Security or Medicare funding reductions, raising new questions for retirement savers. Here's what to know and how to prepare.
How Financial Advisors Are Preparing Clients for Potential Benefit Changes
Most retirees (91%) cite Social Security as a source of their retirement income, a 2025 Transamerica Center for Retirement Studies survey found. In addition, 53% of retirees indicate that Social Security will be their primary source of income throughout their retirement, and among those who are not yet retired, 25% expect to primarily rely on it.
While no one knows exactly what lawmakers will do, many financial professionals are encouraging clients to prepare for the possibility of reduced benefits or higher healthcare costs.
"While Americans can’t eliminate these risks entirely, they can make their retirement plans more resilient by partnering with an advisor," said Brad Carrier, vice president of brokerage annuity distribution at Nationwide Financial. "The good news is that advisors are tracking these threats and are prepared to meet them head-on."
Why More Advisors Are Turning to Guaranteed Retirement Income
According to the Nationwide survey, 60% of advisors are more likely to recommend a client put part of their portfolio into an annuity or other solution that provides guaranteed income.
"Concerns about the future of Social Security are part of what’s driving interest in guaranteed income solutions in today’s environment," Carrier said, "with data from Greenwald Research showing 70% of consumers are confident annuity payments will be made as promised, compared to just 61% who feel the same way about Social Security."
Annuities can help create a predictable income stream that works alongside Social Security benefits and Medicare premiums, which can be especially vital if these benefits are reduced.
"They are one of the only investment products that can provide guaranteed income for life no matter how long someone lives and regardless of the economic environment," Carrier said. "If Social Security benefits are reduced or Medicare costs increase, annuities can act as a privately funded pension, helping to replace lost Social Security benefits or cover rising healthcare expenses."
While annuities aren't right for everyone, advisors increasingly view them as one way to supplement Social Security income and create additional retirement certainty.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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