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Retirees fear rising costs from tariffs

Nationwide survey shows many seniors are financially stressed

Updated:

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By:
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Mark Huffman
Reporter

Mark Huffman has covered consumer issues since 2004, with a special focus on protecting and empowering older adults. A former news correspondent for the Associated Press Radio Network, Westwood One, and ConsumerAffairs, Mark brings decades of journalistic experience to RetirementLiving.com. He is passionate about giving consumers a voice and helping them make informed decisions. Mark has also created educational content, including Senior Scam Alert, a video resource designed to help seniors recognize and avoid fraud. He holds a B.A. from the University of Kentucky and lives with his family in Richmond, Virginia.
American flag pin on a dollar bill: Photo by Marek Studzinski on Unsplash

Photo by Marek Studzinski on Unsplash

Key Insights

  • Half of retirees fear tariff changes will erode their retirement security, survey finds
  • 63% worry inflation tied to tariffs will outpace Social Security Cost-of-Living Adjustments (COLAs)
  • More than 80% of Americans are concerned about the long-term viability of Social Security

Retirees are increasingly worried that global trade tensions and tariff changes could undermine their already fragile financial security. According to the 12th edition of Nationwide Retirement Institute’s Social Security Survey, half of retirees say they are concerned about how tariff shifts could impact their retirement income and savings.

Of even greater concern, 63% believe rising tariffs will fuel inflation at levels beyond what annual Social Security Cost-of-Living Adjustments (COLAs) can cover, leaving them exposed to financial gaps.

“Today’s retirees are facing economic headwinds that feel more unpredictable and immediate than ever before,” said Tina Ambrozy, head of Strategic Customer Solutions at Nationwide. “These findings show that many Americans are just one disruption away from serious financial strain.”

Already struggling to make ends meet

The report reveals that many Social Security recipients are already stretched thin. More than six in 10 (61%) say missing even half a Social Security check would leave them unable to survive financially. 

Over half (55%) report that benefits alone are insufficient to cover their basic needs.

To cope, retirees are cutting back. About 52% have scaled down discretionary spending, 31% have reduced essential expenses, and another 31% have drawn more heavily from savings and retirement accounts.

Concerns extend far beyond today’s retirees. Nationwide’s data shows that 83% of Americans are worried about the long-term viability of Social Security, with nearly three-quarters (74%) fearing the program could run out of funding within their lifetime.

Younger Americans are particularly skeptical: 38% of Gen Z and 34% of millennials believe they will never receive any benefits despite paying into the system.

Knowledge gaps

Although most Americans (74%) believe they can manage their benefits without professional guidance, the survey found widespread misunderstandings. Only 21% correctly identified the age of eligibility for full benefits, and respondents answered barely half of the 15 basic Social Security questions correctly.

Meanwhile, nearly one in five current recipients (19%) said managing benefits has become more difficult in 2025, adding complexity to an already challenging system.