Despite it being a significant chunk of their future retirement income, a growing number of Americans are uninformed about Social Security benefits, finds new research from Allianz Life.
The 2024 Annual Retirement Study from the firm found that 53% of Americans admitted not knowing much about Social Security or how it will fit into their retirement plan. This was especially true with younger Americans, with 60% of Millennials and 51% of Gen Xers noting their unfamiliarity regarding the benefit. Still, 23% of Baby Boomers over age 60 also admitted to not understanding Social Security.
Hispanic respondents (63%) were more likely than Asian/Asian American (56%), white (54%), and Black/African American respondents (47%) to say they do not know much about Social Security or how it will fit into their retirement plan.
Specifically, over half of respondents said they are unsure about the timing to take Social Security benefits, including 57% of Millennials, 56% of Gen Xers, and 23% of Boomers. Just 44% of Americans say they have a plan for how they will take Social Security in retirement.
Others worry over Social Security’s insolvency and question whether the benefit will be available once they retire. Over half of Americans surveyed (57%) believe that Social Security won’t be available in retirement, while 73% of Gen Xers and 63% of Millennials believe the same.
“Regardless of what happens in the future, Social Security cannot be your entire retirement strategy,” said Kelly LaVigne, vice president of consumer insights at Allianz Life. “For many Americans to retire comfortably, they need additional income along with their Social Security benefit to maintain their standard of living.”
The survey adds that while only 22% of Americans have spoken their concerns over Social Security with a financial advisor, 80% want to have that conversation with a financial professional. This is especially true for Millennials (81%) and Gen Xers (60%).
Allianz Life also notes that many Americans have unrealistic expectations regarding phased retirements. While 41% of Millennials and 38% of Gen Xers plan to work past their Social Security retirement age, only 28% of Boomers are working past this age.
Still, working in retirement remains incredibly common for Americans, especially among middle-class workers. According to the Pew Research Center, one in five people over age 65, or 11 million Americans, continue to work.
Allianz Life conducted the 2024 Annual Retirement Study in February and March, with a nationally representative sample of 1,000 individuals over age 25 and with an annual household income of over $50,000 for a single household, $75,000 for married or partnered households, or those with investable assets of over $150,000. The study included an oversample of respondents who identified as Black/African American (416 responses); Hispanic (398 responses); and Asian/Asian American (366 responses).
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.