Social Security Alone Now Supports Nearly Half of Retirees - A Sharp Jump From Last Year

The Senior Citizen League's 2026 Senior Survey revealed that approximately 44% of the retirement-age population, an estimated 24.6 million people, are living on just Social Security. This population depends on Social Security benefits for their entire income, a figure that's up from the 39% of the population reported just a year before.

Relying on Social Security benefits as a sole source of income isn't easy, but dependency on the program is increasing due to several factors.

The financial strain of relying only on Social Security

The population relying on Social Security as their only source of income faces significant financial challenges. Of the 24.6 million people who live only on Social Security, 54% of those people live on less than $2,000 a month. Additionally, 13% of those individuals survive on less than $1,000 per month, meaning about 5.6 million individuals are living below the federal poverty line.

The average cost of rent for a one-bedroom apartment in the U.S. exceeds $1,500 a month, and Modern Wealth Management estimates that retirees need $54,000 or $6,000 a month to cover essentials like food, housing, health care, insurance, and taxes to maintain a modest lifestyle in most locations in the U.S.

Dissatisfaction with the 2026 COLA

The Senior Survey revealed deep dissatisfaction with the 2026 cost-of-living adjustment (COLA), which is intended to ensure that Social Security benefits keep up with inflation. Almost three out of five respondents indicated they were dissatisfied with the amount of monthly benefits they receive.

The 2026 COLA was 2.8%, and 89% of respondents indicated that the COLA was too low. Respondents also indicated that they felt their benefits weren't keeping up with inflation. The average 2026 Social Security check is $2,026.41 per month.

Is the COLA keeping up with inflation

The Senior Citizens League reports that the estimated monthly cost of living for a single older adult is $2,700, meaning average Social Security checks of just over $2,000 a month aren't fully meeting essential expenses like food, transportation, and health care. As a result, many seniors are having to delay medical care.

There's been conversation about the fact that the COLA calculation may not accurately reflect the costs that retirees face. The COLA is calculated using Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) data. That data reflects the spending habits of workers, but it may underweight expenses that seniors often face, like health care. Since health care expenses often increase faster than the inflation rate, the COLA may not be increasing Social Security benefits enough to truly keep up with the price increases that retirees see.

Why dependency on Social Security is increasing

Many factors are likely contributing to this increased dependency on Social Security. Growing inflation, thinning personal savings, and increased cost-of-living pressures may make more individuals reliant on the program. In the last year alone, growing energy and food costs may strain already tight budgets, making Social Security benefits even more important to individuals who are already barely getting by.

What a benefits cut might mean

The Social Security trust fund's projected insolvency could be devastating to those who rely on the benefits as their sole source of income. The Social Security Trustees project that the trust fund may be depleted in 2032. At that point, retirees may be subjected to an automatic 22% reduction in benefits, since the program wouldn't be able to fully pay all scheduled benefits.

A 24% benefits cut would average $500 a month, a figure that's more than what average retired households spend on groceries during a month. The cut might exceed $500 in certain states, marking a sharp reduction for households who heavily depend on the benefits.

The Center on Budget and Policy Priorities reports that the Social Security program helps lift 23.5 million adults and children out of poverty, a figure that might change if benefits were reduced.

Potential solutions to Social Security challenges

The survey revealed strong support for Social Security, but also indicated that recipients believe changes are in order. Eighty-nine percent of respondents indicated that Congress should make strengthening Social Security and Medicare a top priority.

There was also strong support for solutions that would give beneficiaries extra funds, such as issuing a one-time stimulus payment to make up for COLAs that didn't reflect actual inflation. Survey respondents also supported the idea of Congress guaranteeing a minimum COLA of at least 3%.

Bottom line

It can be very difficult to live off of Social Security benefits alone. If you're nearing retirement, consider reviewing what other income sources you might have to supplement Social Security. Savings, part-time work, and even home equity may all help to close the gap between your benefits and any remaining essential expenses. Building even a small financial buffer matters, given how many retirees now have none.

A financial planner may help you review your budget and evaluate your retirement plan to ensure that you'll be able to cover your expenses even if Social Security benefits are reduced.

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Author Details

Chris Lewis, CEPF

Chris Lewis has spent his career turning data into answers. As Director of Digital PR at FinanceBuzz and a Certified Educator in Personal Finance, he oversees the data journalism and media relations teams, digging into the personal finance topics that shape Americans' lives at every stage, from Social Security and retirement income to 401(k) strategies, jobs, and real estate.