Savers are deeply concerned that Social Security won’t cover retirement costs, but there are things they can do to close the income gap.
Phasing down most paper checks for federal benefits
The federal government will begin phased out social security and other federal payment paper checks by September 30th.
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According to the Nationwide Retirement Institute 2025 Social Security Survey, Americans are deeply concerned about Social Security. That makes perfect sense given that most retirees rely on payments to cover a significant portion of their retirement costs.
But this important government programme doesn’t cover all of them, it’s just a painful fact. Below are three ways that can bridge the gap between costs and social security checks:
How bad is the problem?
A 2025 study from the Institute found that “more than half of US adults who expect to receive or receive Social Security say they can’t survive even half of their monthly payments financially.” This is a big statement. Because an average profit of $2,000 means that only $1,000 can be the difference in financial difficulties for many people.
So it makes sense that the survey also “more than four in five Americans have expressed concern about the long-term viability of the program.” If losing half of your monthly payments is only necessary to bring financial difficulties, then the reliability of the program is a constant concern, as Social Security is clearly crucial for retirees.
Three solutions
That said, this issue has already been brought home due to the impact of inflation, which has dramatically increased the cost of living. In fact, retirees have already cut back on three important approaches. These can also be used if necessary.
1. Reduce spending
The most obvious way to deal with shortages in terms of income is simply to spend less. It is, in fact, the most common adjustment for those collecting social security. That said, there are two different numbers to consider here.
Approximately half of all those surveyed in the national survey say they reduced spending on discretionary things. This is a list that includes activities such as eating out and traveling. It’s a logical move and can easily do the same if you’re facing a cache crunch.
But there’s another, more difficult choice. Almost a third of respondents say they are reducing their needs like groceries and medication. It’s easy to buy store branded potato chips instead of name brands, but if you need medicine, there may not be a cheaper common option.
2. Move to a small place
That might make sense to another strategy. In particular, about 18% of survey respondents said they had reduced the gap to close the gap between cash needs and Social Security.
Before resigning, many people have family and responsibility, meaning a bigger home. However, I hope that after retirement, there will be no need for the same housing needs. A small condo can easily replace a 4-bedroom home, leading to two potential benefits.
The most obvious plus of downsizing is that small homes are likely to involve continuous cost reductions. It’s a decrease in maintenance, a lower tax, and less emotional stress. That last perk has nothing to do with money, but don’t overlook the time and energy needs that you need to maintain your home. If you’re already worried about money, worrying about your home will not make anything better.
The second benefit of downsizing is only useful if you are an owner with home equity. But the logic is very simple. Selling a large house will create more money than you would need to buy a small house. You can save money on the differences and invest, buy instant pensions (effectively create new income streams), put them in your bank account and use them directly to pay for your living expenses.
3. I’m going back to work
One of the last options used by 15% of survey respondents was to return to work part-time. When faced with shortages, these people increased their income instead of cutting costs. It’s clearly a solution for many people, but your job capabilities may be limited by health concerns. Therefore, turning down this path is a risk.
It’s not an ideal outcome for those looking to quit, but it’s a viable strategy. That said, there is an easier alternative here. If you have the opportunity to work longer in front You retire and you can build more savings. These additional savings will help ease you from the social security shortages you may face after retirement.
Big things you need to think about before you retire
If you’re already retired and face a gap between what Social Security offers and what you need to spend, your options are a bit limited. Reducing costs, reducing and part-time tasks are relatively simple solutions. But these are all temporary fixes. If you become more preventive (if possible) before your retirement, you will create a cushion to protect you from the risk of future cash shortages.
But the best thing you can do to protect yourself before you retire is to save as quickly as possible. Of course, it’s about creating a good investment plan for saving. If you have time to build wealth before you retire, Social Security doesn’t have much to worry about leaving. Almost 30% of survey respondents were able to enhance more savings to compensate for the gap between social security and spending needs. Plan ahead and you can have that valuable safety valve too.
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