Social Security is an important part of retirement income, yet most people are mistaken about key elements of Social Security. This article discusses a recent survey by Nationwide Retirement Institute. The survey found most Americans are way off base on key parts of the program such as how much money they’re likely to receive from Social Security, how much they can increase earnings by delaying benefits, and what they’re due based on the earnings of spouses and ex-spouses.
A lack of knowledge and planning for Social Security is a big reason why recipients don’t maximize their benefit payout.
Nearly six of 10 (57%) future retirees think they are eligible for benefits sooner than they really are, and 63% said they were “not confident” in their knowledge of Social Security. Overall, 88% of those surveyed admitted they don’t know what factors determine how much their monthly benefit will be.