Half of surveyed retirees say they are "terrified" that tariffs could erode their retirement income or savings, according to a new Nationwide Retirement Institute survey, as fresh trade actions and rising costs feed anxiety about fixed benefits.
Why Tariff Fears Are Eroding Retirement Security
Nearly 63% of survey respondents said tariffs would push inflation above next year's Social Security cost-of-living adjustment, which the Senior Citizens League recently projected at 2.7% for 2026.
Concern persists despite recent benefit increases — an 8.7% COLA in 2023, followed by 3.2% in 2024 and 2.5% in 2025 — with many saying checks still don't stretch as far.
In the survey, 61% said they "could not financially survive" if they missed half of a monthly Social Security payment. Nationwide also found 52% of recipients have cut discretionary spending, 31% have pared back essentials such as groceries and medications, and 29% have dipped into savings to cover higher living costs.
Can Social Security Keep Up With Inflation?
Retirees' unease runs parallel with broader doubts about Social Security's adequacy. While a new Transamerica Institute report this month found 69% of Americans expect Social Security to be a source of retirement income, Nationwide's respondents were skeptical that it would be enough.
A majority of both current beneficiaries (55%) and future recipients (57%) said it won't cover basic needs. The same survey reported 83% are concerned about the program's long-term survival, 74% think it will run out of funding during their lifetime and 22% believe they "will not get a dime." Even if they do receive benefits, 61% expect they will need to keep working.
Disturbing Reality Of Retiree Financial Anxiety
Reports from earlier in the year track the squeeze facing retirees, including the 2025 COLA's limited relief and 2026 projections that imply only modest monthly increases, highlighting why tariff-linked price pressures loom large for households on fixed incomes.
Photo Courtesy: Lane V. Erickson on Shutterstock.com
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