Depressing, discouraging, damaging—pick a word to describe the following findings from MassMutual.
The financial services giant recently administered a Social Security quiz, and found that near-retirees still have a lot to learn about Social Security retirement benefits, and therefore may be leaving money on the table.
Nearly half of Americans age 50 and over failed a basic true/false quiz on the popular government program. When MassMutual surveyed the nation three years ago with a broader 10 true/false question quiz, 62 percent age 50 and over failed, and out of the general adult population, 72 percent failed.
“There’s improvement, but the scores are still alarming,” Mike Fanning, head of MassMutual U.S., said in a statement. “Knowledge is power when it comes to Social Security retirement benefits. For many, thousands of dollars could be left on the table at a time when it really counts.”
So what else has changed since MassMutual’s last nationwide poll in 2015?
The Social Security Administration stopped mailing Social Security statements to those under the age of 60, meaning the only way to access information is online.
To check to see if near-retirees were paying attention, MassMutual asked: “Have you created an account on the Social Security Administration Web site to view your earnings history to ensure it is accurate now that the administration no longer mails statements to people under the age 60?”
A whopping 86 percent of those age 50-59 who are affected by this change answered NO, they have not created an account yet.
Of the total pool surveyed of those age 50 and over, the majority (60 percent) have not created an account yet.
“Getting Social Security right is critically important to inform plans for other income stream needs later in life as it may be difficult, and sometimes not even possible, to hit the reset button,” Fanning added. “This is not a retirement planning conversation. This is a longevity planning conversation, and near-retirees have the power and responsibility to ensure that they protect and receive every dollar they deserve in Social Security retirement benefits when the time comes.”
Specific findings of the 2018 MassMutual Social Security survey were:
- Under current Social Security law, my benefits will not be reduced if I claim them at age 65. 49 percent answered correctly: FALSE.
- My spouse is eligible to receive Social Security retirement benefits, even if he or she has no individual earnings history. 54 percent answered correctly: TRUE.
- If my spouse dies, I will continue to receive both my own benefit and my deceased spouse’s benefit; the total Social Security benefits I receive will not change. 80 percent answered correctly: FALSE.
- Social Security retirement benefits are based on my earnings history; I’ll receive the same monthly benefit amount whether I start collecting before or after my full retirement age. 83 percent answered correctly: FALSE.
- If I am still working when I claim my Social Security, my benefit might be reduced, depending on my earnings and my age. 85 percent answered correctly: TRUE.