Growing uncertainty over Social Security, Medicare and fiscal policy has left many older Americans more concerned about their financial futures — with some delaying retirement and shifting to more conservative investment strategies.
Findings from a new survey analysis by the Center for Retirement Research at Boston College offer critical insights for reverse mortgage professionals as they collaborate with financial planners to address senior clients’ evolving retirement needs.
The survey, conducted by Greenwald Reserch, drew responses from 1,443 individuals ages 45 to 79 with more than $100,000 in investable assets. It found 39% growing more concerned about their financial future during the first seven months of 2025 — while only 15% became less concerned.
Among the policy risks examined, potential cuts to Social Security benefits emerged as the top worry for retirees and near-retirees alike.
Fifty-four percent of respondents said a 20% cut to Social Security benefits starting in 2035 would require “significant sacrifices or a tighter budget” — the highest percentage among all policy scenarios presented.
“Since Social Security provides the majority of income for roughly half of U.S. retirees, any change to the program can have seismic implications for their household finances,” the report states.
The Social Security retirement trust fund is projected to be depleted by 2033, according to the report, after which current revenue would cover only about 75% of statutory retirement benefits.
Retirement delays, investment shifts
In response to heightened policy uncertainty, 21% of pre-retirees now plan to retire later than they anticipated before 2025, while only 4% plan to retire earlier.
Additionally, 27% of respondents have moved to more conservative investment portfolios since the start of the year.
The survey found a direct correlation between exposure to news about Social Security’s financial challenges and decisions to delay retirement. Those who consumed substantial coverage of Social Security’s difficulties were 16.6% percentage points more likely to delay retirement compared to those with little exposure.
Medicare, inflation and tariffs
While only 39% of respondents said Medicare premium increases of 10% annually for three years would significantly affect their budgets, exposure to news about Medicare cost growth was still associated with heightened financial concerns and plans to delay retirement.
Inflation ranked alongside Social Security as the only areas where a majority of respondents believed policy could lead to severe lifestyle changes — a finding the report said “echoes the media coverage showing Americans deeply concerned with the cost of living.”
Though near-retirees and retirees did not view federal debt levels as particularly threatening, concerns about tariffs showed strong correlations with financial worries and investment behavior.
Worry over tariffs was associated with decreased risk-taking in investments and a notable decline in savings, possibly because tariffs drive up current costs, the report explained.
