Americans Fail Basic Social Security Knowledge Quiz
A new survey tells us that we need more education about a vital piece to our retirement income. An online poll commissioned by MassMutual asked 1,500 Americans ages 55-65, 13 true or false basic questions about Social Security. 41% of respondents failed, getting less than 55% of the answers correct. Less than 1% aced the quiz. Only 2% received an A grade, 7% a B, and just 13% got a C.
70% Correct on Spousal Benefit Questions
Examples of the true/false statements include: “If I have a spouse and he or she passes away, I will receive both my full benefit and my deceased spouse’s full benefit.” This is false – 70% correctly answered this.
Most Don’t Understand Solvency Issues
Another question was “Under current law, Social Security benefits could be reduced by 20% or more for everyone by 2035.” This is true, but only 58% got this vital question right.
40% Expect Social Security to Be Largest Retirement Income Source
The same survey asked respondents what they believe will be their biggest retirement income source. 40% said Social Security, showing Americans on the verge of retirement are unprepared to make Social Security decisions.
63% Think Retirement Money Will Run Out in 20 Years
Additional questions revealed how little retirement income planning most people have done. 36% think their income will last 0-10 years in retirement; 27% said 11-20 years. That’s 63% who believe their money will run out in 20 years or less.
When asked if their plans account for inflation and volatility, only 20% said yes. 80% answered no, “I hope so,” or “I have no idea”. Having a written retirement plan with a financial advisor would provide clarity.
Get Informed at Free Educational Workshop
Registration is open for a free GenWealth Academy workshop on March 5th featuring Social Security expert Matt Emanuel. Attend to boost your Social Security knowledge before making major retirement decisions! Seating is limited, so register here.
Want to know more about Social Security now? Check out this GenWealth Academy Blog!
All information contained in this blog is for general information only and shouldn’t be considered investment advice.
