While Social Security has traditionally played an important role as a source of retirement income, new data from Allianz Life suggest that it’s a point of uncertainty for more than half of Americans today.
The new survey, which draws responses from 1,000 individuals, reveals significant knowledge gaps among Americans regarding Social Security, with 53 percent saying they’re unsure of how the benefit fits into their retirement plans.
The 2024 Annual Retirement study highlights that younger generations, particularly millennials and Gen Xers, are more likely to lack understanding of Social Security. Sixty percent of millennials and 51 percent of Gen Xers admit they have limited knowledge, while 23 percent of baby boomers over age 60 also report being uncertain.
“It’s worrisome that so many Americans don’t know how Social Security will fit into their retirement strategy,” Kelly LaVigne, vice president of consumer insights at Allianz Life, said in a statement.
The study also reveals that many Americans are unsure when to begin claiming Social Security benefits. Fifty-three percent of respondents, including 57 percent of millennials and 56 percent of Gen Xers, remain uncertain about the optimal timing. Surprisingly, nearly one in four boomers (23 percent) still have not determined when to start collecting benefits.
While the majority of boomers (71 percent) have developed a Social Security strategy, far fewer Gen Xers (27 percent) and millennials (30 percent) have done the same. The study also found that 57 percent of Americans are concerned that Social Security may not be available throughout their retirement. Among younger generations, 73 percent of Gen Xers and 63 percent of millennials express this concern, compared to just 42 percent of boomers.
Despite widespread anxiety about the future of Social Security, few Americans are discussing these issues with financial professionals. Only 22 percent of those who work with an advisor have broached the subject, and just 17 percent have sought advice on maximizing their Social Security income. However, 60 percent of respondents expressed interest in having these conversations, with millennials (81 percent) and Gen Xers (60 percent) showing the greatest desire for guidance.
“Regardless of what happens in the future, Social Security cannot be your entire retirement strategy,” LaVigne emphasized. “For many Americans to retire comfortably, they need additional income along with their Social Security benefit to maintain their standard of living.”
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