New Study Reveals Unexpected Threat to Social Security

By Christy Bieber – Feb 28, 2026 at 7:15AM ESTKey PointsRetirees often worry about Social Security benefits running out. An overlooked issue could mean Social Security benefits do little to support seniors.The rising cost of healthcare is the real threat to Social Security. When it comes to Social Security benefits, many people are afraid that benefits won't be available to them by the time they get to retirement age, due to the fact that the Social Security trust fund is in trouble and slated to run dry in the coming years. This may actually not be the biggest threat to your Social Security, though -- especially given that lawmakers are unlikely to allow huge cuts to happen. And even if they do, there will be money coming in to pay most of the promised benefits from revenue collected from current workers. So, what should retirees be concerned about when it comes to their Social Security benefits? HealthView Services' 2026 Retirement Healthcare Costs Data Report reveals the real threat to Social Security -- and it's a threat that could mean this important benefits program actually does very little to help retirees cover most of their costs. Image source: Getty Images. The real threat that Social Security retirees need to know about According to the HealthView Services' report, the real problem for Social Security retirees is that the rising costs of medical services are far outpacing the increase in annual Social Security benefits. Specifically, the HealthView Services' report explains that health-related cost inflation is projected to be around 5.8% over the long term. That's based on a healthy 65-year-old couple who retires in 2026. At the same time that healthcare costs are going to rise dramatically, Social Security's cost-of-living adjustments are only expected to provide retirees with a 2.4% benefits increase each year on average. Since the costs of medical care will increase much faster than the costs of Social Security benefits, retirees have a big problem. Specifically, a healthy 55-year-old couple today who is on track to collect the national average Social Security benefit would end up needing 104% of their benefits to pay for Medicare premiums as well as for the out-of-pocket expenses that come along with Medicare coverage. Things get worse, not better, over time. The typical 45-year-old couple facing this same scenario of average benefits and average medical costs would expect to use 129% of their Social Security benefits for medical services. Rapidly rising healthcare costs are a high threat to retirees It's clear that if retirees see their entire Social Security check disappear to medical care costs because inflation in this area is so high, it will cause financial hardship. Many retirees rely more than they should on Social Security because they have too little saved in their retirement plans. When most or all of their Social Security is going to healthcare services, they won't be able to cover the basics. This means current workers should start preparing now by saving as much as they can in a 401(k) and investing wisely. Some experts also think the government should reconsider the way Social Security calculates annual COLAs to account more accurately for the inflation retirees experience, but given that this would worsen Social Security's already unstable finances, this is probably a non-starter. Future retirees need to be aware of this big threat to their benefits and should plan accordingly.Read NextFeb 28, 2026 •By Christy BieberMedicare Paid $12.3 Billion for These Services in 2024 & Now It's Limiting CoverageFeb 28, 2026 •By Selena MaranjianCan You Retire Comfortably on $1 Million in Savings?Feb 28, 2026 •By Maurie BackmanWorking After Claiming Social Security?

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These Cities Make It Easier Than You Think.About the AuthorChristy Bieber is a contributing Motley Fool retirement and Social Security expert covering retirement planning, 401(k)s, IRAs, and other personal finance topics. Christy has written about finance since 2008 and previously taught business courses at Bryant & Stratton College. She holds a law degree from UCLA and a bachelor’s degree in English, media, and communication with a certificate in business management from the University of Rochester. In law school, she earned three CALI Awards for Excellence for the highest scores in civil procedure and contract law exams.TMFChristyB