Retirees fear tariffs, inflation costs will outpace Social Security benefits

Concerns about global trade and tariff changes are adding to the financial pressures that many American retirees are facing. According to the 12th edition of the Nationwide Retirement Institute’s Social Security Survey, half of retirees are terrified about the impact of tariff changes on their retirement income or savings, and 63% believe these rising tariffs will drive inflation beyond what Social Security Cost-of-Living Adjustments (COLAs) can cover.

These concerns about tariffs and inflation are occurring when many current Social Security recipients are already struggling to make ends meet. For example, the survey said, 61% of those who took part in the survey said that missing even half of a Social Security payment would leave them unable to survive financially, and 55% said that their benefits don’t cover their basic needs in retirement. As a result, many have been forced to make tough financial trade-offs, with 52% cutting back on discretionary spending, 31% reducing essential expenses, and another 31% relying more heavily on their savings or retirement accounts.

Managing fears about tariffs, inflation

To manage these concerns and fears about tariffs and inflation, Americans said that they are open to receiving help from financial professionals as they plan for various income streams in retirement.  For example, the survey found that 58% of U.S. adults are interested in speaking to a financial professional to help them manage or navigate potential cuts to Social Security benefits in the future.

And nearly four in five individuals who currently work with or plan to work with a paid financial advisor said that they would be likely to switch to another paid advisor if theirs couldn’t help them maximize their Social Security benefits.

Low knowledge level of Social Security benefits

This need for help in managing benefits should not come as a surprise. According to the survey, only 38% of Americans said they are confident in their knowledge of the program. And just 21% of all respondents were able to correctly identify the age at which they are eligible to receive full Social Security benefits. When asked to respond to 15 true-or-false questions about Social Security, the average respondent knew only eight correct answers.

Adding to the challenge, nearly one in five (19%) current Social Security recipients said that it has become more difficult to access or manage their benefits in 2025, This signals a system that’s not only misunderstood, but also increasingly complex to navigate without professional help, the survey said.

Why the knowledge gap?  

So, why do so many Americans know so little about Social Security benefits?  As Tina Ambrozy, SVP, Nationwide Financial Strategic Customer Solutions explained it, the financial services industry has done a great job in helping American workers understand the importance of saving and investing for the future, but that singular focus has left a gap. Many have put very little thought into what comes after they cross the retirement threshold.

“Our research shows that too many investors are on autopilot when it comes to thinking about Social Security, overlooking how it fits into a broader retirement income strategy,” added Ambrozy. “We’ve missed opportunities to help them think about creating a plan to strategically use their assets in retirement – how much to withdraw, in what order (e.g., taxable vs. tax-advantaged accounts), and how to make savings last.)”

A key part of that includes understanding the role Social Security will play in their personalized plans, Ambrozy added. “That’s where a financial professional can add real value: clearing up misconceptions, addressing knowledge gaps and creating a holistic plan that will help their clients approach retirement with more confidence,” she said.

Helping your clients address their concerns

So, what are some of the components of a plan that is designed to help clients protect their income and secure a more stable future?  Financial professionals have a tremendous opportunity to build stronger relationships and demonstrate value with their clients by helping them break down Social Security, their strategy for claiming it, and how it will fit into their overall plan for retirement income, said Ambrozy.

“The first step is to start the conversation by proactively introducing the topic, as opposed to waiting for the client to bring it up,” Ambrozy said. “Next,” she added, “guide clients through the basics of Social Security, address any misconceptions and ensure they have a clear view of how it fits into their retirement picture. There are important opportunities to help them coordinate strategies for retirement income and taxes to improve efficiency and reduce surprises.”

Advisors should also meet their clients where they are, offering guidance that reflects their life stage and goals, Ambrozy added. “For example, older clients may need assistance with filing logistics and timing, while younger clients may want additional education and scenario modeling to help them envision how Social Security may fit into their long-term financial plan,” she said.

For more insights on this survey data and Americans' concerns about tariffs and inflation, see the Advisor Advocate Blog or view this infographic.

The research was conducted online by The Harris Poll on behalf of Nationwide among 1,812 adults age 18+ who currently receive or expect to receive Social Security (“national sample”). These include 301 Gen Z (age 18-28), 504 millennials (age 29-44), 505 Gen Xers (age 45-60), and 502 Boomers+ (age 61+).  The survey was conducted from June 2-17, 2025.