5 Things Most Americans Do Not Know About Social Security
5 Things Most Americans Do Not Know About Social Security

5 Things Most Americans Do Not Know About Social Security

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So you think you know everything you need to know about social security? If so, congratulations – you are in the minority when it comes to knowledge of the country’s largest pension benefits program.

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A study published by the Nationwide Retirement Institute showed that most Americans largely lack knowledge of the most basic functions of social security. The study was based on a study conducted by The Harris Poll on behalf of the Nationwide Retirement Institute, part of the National Insurance and Financial Services Company.

“It is indisputable that Americans across all generations need more social security training,” said Tina Ambrozy, senior vice president of Strategic Customer Solutions at Nationwide, in a press release. “Unfortunately, failing to close the knowledge gap and correct some of these misconceptions can have costly consequences. Financial professionals need to help their clients understand this foundation for retirement insurance in America and plan properly to maximize their social security benefits.”

Here are five things most Americans do not know about social security:

  • Eligibility age: Two out of five (39%) of the respondents do not know the eligible age to receive full benefits

  • Payments: Only more than half of those who do not already receive social security (51%) do not have a clear sense of how much they will receive in social security income

  • Spouse / child benefits: 30% do not know that social security can offer benefits to spouses and children

  • Inflation protection: More than a third (37%) mistakenly believe that social security benefits are not protected against inflation

  • No adjustments: 45% mistakenly believe that if they apply for benefits early, their benefits will increase automatically when they reach full retirement age, or they do not know this is false.

The study found that many Americans do not educate themselves on social security because they do not think it will be present when they are ready or need to claim their benefits. Seven out of 10 adults aged 25 and older worry that the program will run out of money in their lifetime. This is especially true for millennials (77%) and Gen Xere (83%). But even 61% of baby boomers worry about the same thing.

In addition, almost half of millennials (47%) believe that they “will not receive a penny of the social benefits they have earned. “

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This article was originally published on GOBankingRates.com: 5 Things Most Americans Do Not Know About Social Security

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