Lack of Knowledge About Claiming Social Security Could Be Costly in Retirement

A new AARP survey found that Americans want and need more information on Social Security.

Specifically, they need information on beneficiary claim ages and their effect on monthly payments and those who have ever been married face even more complex decisions. Populations that rely on Social Security the most show gaps in knowledge. Most do not understand what Trust Fund exhaustion means.

The survey was designed to assess knowledge among those who are receiving or who will be eligible to receive Social Security retirement benefits. All future beneficiaries want to make the right decisions, the survey found, but in only very few cases did more than half answer our questions correctly.

Key Findings

• More than half (59%) of Americans ages 25–66 say they are not knowledgeable about how Social Security benefits are determined.
• Seven in ten (70%) wish they had more knowledge about how benefits are determined.
• People know that postponing when they begin collecting Social Security will increase their benefits. However, they aren’t sure about the age that would maximize their benefits as well as when they can start collecting.
• Fewer than half know that benefits claimed prior to age 67 can be further reduced by continuing to work while claiming Social Security.
• Most also mistakenly believe that dependent spouses are only eligible for Social Security benefits after their spouse dies and not while they are still living.
• Rules related to getting divorced and becoming a widow or widower are not well known.
• Women and African American/Black and Hispanic/Latino American populations lack clarity on some of the decisions that impact benefit amounts.

Methodology

The survey was fielded among 3,383 Americans 25–66 who are receiving or are eligible to receive Social Security retirement benefits to assess knowledge levels and information gaps concerning Social Security. For more information, please contact Rebecca Perron at rperron@aarp.org. For media inquiries, please contact External Relations at media@aarp.org.