While many retirees say Social Security is their main income, federal tax data shows only 14% actually depend on it for 90% or more of their retirement income, revealing a gap between perception and reality
Surveys often suggest that Social Security is the primary or even sole source of income for a large share of U.S. retirees. But a closer look at federal tax records reveals a different reality: far fewer older Americans rely almost entirely on Social Security than self-reported surveys indicate. This gap matters for policymakers, retirees, and anyone planning for retirement, as it shapes public debate and personal expectations about financial security in later life.
According to a 2025 survey by the Transamerica Center for Retirement Studies, 91% of retirees report Social Security as a source of income, and 53% say it is their main source. The Senior Citizens League has reported that nearly four in ten retirees claim Social Security provides all their income. Yet, when researchers at the U.S. Census Bureau matched survey responses to actual IRS tax filings and Social Security Administration records, they found that only 14% of retirees truly rely on Social Security for at least 90% of their income. This figure is much lower than what surveys alone suggest.
Survey Gaps and Unreported Income
The main reason for this discrepancy is that many retirees do not report all their income sources in surveys, especially withdrawals from 401(k)s, IRAs, and other retirement accounts. Census Bureau research found that nearly half of such withdrawals go unreported in surveys, making Social Security appear to be a larger share of retirement income than it actually is. Even after the Current Population Survey was redesigned in 2014 to better capture retirement income, the underreporting problem persisted. This data gap led the Social Security Administration to stop publishing its annual income report after 2016.
Tax-linked data provides a more accurate picture. Based on the most recent linked records, just 14% of Americans age 65 and older rely on Social Security for at least 90% of their income, 22% depend on it for 75% or more, and 42% get at least half their income from the program. That means the majority-58%-rely on Social Security for less than half of their retirement income. These figures have remained relatively stable over the past decade, with only minor changes in the share of retirees reporting high reliance on Social Security.
Multiple Income Streams in Retirement
Most retirees have more diverse income sources than surveys capture. According to Transamerica's 2025 data, 45% of retirees draw from 401(k), 403(b), or IRA accounts, 49% have other savings and investments, 40% receive pension income, and 15% use home equity. When these sources are omitted or underreported, Social Security's role appears inflated. The reality is that many retirees supplement their benefits with savings, investments, and other assets, reducing their dependence on Social Security alone.
Demographic differences also shape reliance on Social Security. A 2025 Congressional Research Service analysis found that the share of retirees depending heavily on Social Security roughly doubles between ages 65-69 and those 80 and older. Women in every age group are more likely than men to rely on Social Security as a primary income source, reflecting differences in lifetime earnings, savings, and pension coverage.
What the Numbers Show
Recent data from the Census Bureau's National Experimental Wellbeing Statistics, which links survey responses to federal records through 2021, confirms that the gap between reported and actual reliance on Social Security persists. The share of older Americans telling Census surveyors they rely on Social Security for 90% or more of their income has barely changed-from 25% in 2015 to 24% in 2024-while tax-linked corrections consistently point to a much lower figure.
For context, the Social Security Administration's last "Income of the Population 55 or Older" report, published in 2016, also found that about one in four older adults reported getting 90% or more of their income from Social Security. But when cross-checked with tax data, the true share was closer to one in seven. This persistent overstatement in surveys can mislead both policymakers and retirees about the actual role of Social Security in retirement security.
According to the Social Security Administration, the average monthly benefit for retired workers was $1,907 as of January 2026. For a retiree relying solely on Social Security, this amounts to about $22,884 per year-well below the median household income for Americans age 65 and older, which was $52,000 in 2024 according to the Census Bureau. This gap underscores why most retirees need additional income sources to maintain their standard of living.
Understanding the true role of Social Security in retirement planning is critical for both individuals and policymakers. While the program remains a vital safety net, especially for lower-income and older retirees, most Americans supplement their benefits with savings, investments, or other assets. Relying solely on survey data can overstate the program's importance and obscure the need for broader retirement planning strategies. For those approaching retirement, it's essential to account for all potential income streams and to recognize that Social Security is designed to replace only a portion of pre-retirement earnings, not serve as the sole source of support.
