Credit: (AP Photo/Nam Y. Huh)

The number of retirees in the U.S. who say they are relying heavily on Social Security benefits for their income is on the rise amid a period of significant inflation, according to the results of a new AARP survey.

In all, the AARP survey released Tuesday found 65% of retirees across the nation reported they  rely “substantially” on the income provided through their Social Security benefits, up seven percentage points from a decade ago.

In high-cost New Jersey, an estimated 1.7 million people collect Social Security benefits, most of them retirees.

And in recent years, state policymakers have worked to address growing concerns about the adequacy of retirement savings by establishing a state-administered retirement-savings program for private-sector workers who lack access to an employer-provided retirement-savings option.

That state program, called RetireReady NJ, has enrolled more than 18,000 residents over the last year, collecting a combined more than $8 million in savings, state officials said earlier this month.

The results of the AARP survey, which also polled U.S. adults on their confidence in the Social Security system among other related issues, were released as the nation prepares to commemorate the 90th anniversary of the founding of the national insurance program administered by the federal government.

Roots in Great Depression

The Social Security Act was signed into law by President Franklin Delano Roosevelt on Aug. 14, 1935, amid the Great Depression, and at a time when, like today, there were wide gaps in the amount of income held by the very rich in the U.S. and everyone else.

Today, more than 69 million U.S. residents receive Social Security payments, and more than 183 million workers are regularly paying into the insurance program, according to the AARP.

“Social Security is one of the most successful and popular initiatives in history,” said AARP chief executive officer Myechia Minter-Jordan during a press briefing held Tuesday.

‘If someone is really worried about that … reach out to your member of Congress to make sure they understand how important Social Security is to you, and to your retirement plans.’ — Bill Sweeney, vice president of government affairs, AARP

“It has helped generations of Americans stay out of poverty and live with dignity after a lifetime of hard work,” Minter-Jordan said.

Still, confidence in Social Security has been on the decline over the last decade, according to AARP’s survey results.

A decade ago, 43% of those surveyed said they were “very” or “somewhat” confident in the future of Social Security. However, that dropped to 36% when the same question was posed as part of this year’s survey.

Less certain

Last month, an annual report issued by the Social Security Board of Trustees indicated that, without congressional action, the national insurance program is on track to deplete its trust funds by 2034, something that would trigger a roughly 20% cut in monthly benefits.

“I find it hard to believe that members of Congress would go home to their constituents after letting their Social Security benefits get cut by 20%,” said Bill Sweeney, AARP’s vice president of government affairs, during Tuesday’s press briefing.

In all, more than 60% of those surveyed said the average monthly benefit was ‘too low,’ compared to 35% who said it was ‘about right.’

“That seems like a hard thing to imagine,” said Sweeney, who added those with concerns about Social Security’s solvency and the potential for benefit cuts should contact their congressional representatives to voice those concerns.

“If someone is really worried about that … reach out to your member of Congress to make sure they understand how important Social Security is to you, and to your retirement plans,” he said.

Insufficient funds

A majority of U.S. residents already view the average monthly Social Security retirement payment amount — about $2,000, as of May — to be too low, according to the AARP survey.

In all, more than 60% of those surveyed said the average monthly benefit was “too low,” compared to 35% who said it was “about right.”

And nearly 80% raised concerns about whether Social Security alone will provide enough for them to get by on during their retirement years, according to the survey.

However, in a nation with deep political divisions, Social Security appears to be a unifying issue, the survey found.

A full 96% of those surveyed said they consider Social Security to be an important program. Among Democrats, 98% of those surveyed said Social Security was important, compared to 95% of Republicans, and 93% of political independents, according to AARP.