A new blog from the Center for Retirement Research at Boston College laments the fact that young adults are missing out by failing to utilize useful information available by simply creating a mySocialSecurity account.
The Feb. 10 blog cites a study by Lila Rabinovich and Francisco Perez-Arce that examines the barriers to use of mySocialSecurity, the an online service provided by the Social Security Administration (SSA) that allows Americans to review their earnings history, check current or future benefits, and access many other Social Security services.
Findings from that study, “Mixed-methods Study to Understand Use of the mySocialSecurity Online Platform,” show that there are four key reasons for not creating a mySocialSecurity account: (1) lack of awareness of the program; (2) no perceived relevance/need; (3) security and privacy concerns; and (4) low internet/computer literacy.
These reasons persist despite actual users of mySocialSecurity perceiving the platform to be clear, navigable, and relevant. Nonretired, nonbeneficiary participants in the study found the information on the platform to be particularly instructive and useful.
“Our findings suggest that for younger people especially, MySSA could be a potentially useful financial and retirement preparedness tool,” the authors say in the report’s abstract. “We find that a key challenge to MySSA use is getting people to create an account in the first place and not their retention once they create an account.”
These barriers are keeping mySocialSecurity from realizing its potential as a key resource for retirement readiness. Prior research shows that only 33% have heard of mySocialSecurity and, of these, only two-thirds have set up an account. The study also cites the latest wave of the UAS survey on Social Security literacy fielded in March 2020, which found that 81% of U.S. adults do not have an account and have never used mySocialSecurity, while 19% have used it at least once.
“It’s important to understand why mySocialSecurity isn’t being used more, especially since first-time users described the online feature as easy to use and eye-opening. Going online didn’t seem to be an issue either, because the people in the survey already search for other information that way,” the Center for Retirement Research blog states.
The study did uncover some good news: the use of mySocialSecurity is increasing, and more growth has come from workers than retirees. Women are also logging on more.
But the study authors note that lack of awareness, internet literacy and more generally educational levels are key barriers to mySocialSecurity use—the latter being notable because groups with low education may benefit most from the information available through mySocialSecurity.
Interviews conducted as part of the study provide suggestive evidence that mySocialSecurity could help address some behavioral barriers to retirement preparedness, such as procrastination, overconfidence, and limited attention, as well as lack of knowledge.
“For younger people especially, MySSA could be a potentially useful financial and retirement preparedness tool, by prompting individuals early and clearly about important information and actions for financial (especially retirement) planning, and by providing a salient shock to correct expectations about future retirement benefit amounts,” Rabinovich and Perez-Arce write.
The research shows people that people who actually use the platform are broadly happy with how it works and what it does. Getting people to create an account in the first place remains the biggest barrier, and how to overcome that barrier remains an important question.
Access the full study here.
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