A Teachable Moment about Social Security Benefits
Reading Time: 2 MinutesLast Updated: November 6, 2023
It appears we have a knowledge gap among younger workers when it comes to Social Security. Recent analysis from the nonpartisan Employee Benefit Research Institute (EBRI) shows a quarter of younger workers believe that Social Security will not be part of their income in retirement. This compares with 13% of those over 45 who believe the same thing.
Younger men are more likely (29%) than younger women (21%) to say Social Security will not be an income source in retirement. And 41% of the nonbelievers have talked with a professional financial advisor about retirement planning, suggesting there are advisors out there who are discounting Social Security, too.
Younger workers who have estimated their Social Security benefit are more likely to believe it will be a source of income in retirement (28%) than those who haven’t (20%).
It appears we have a ‘teachable moment.’ For the average worker, Social Security may replace about 40% of preretirement income. It’s important to factor this benefit into their retirement planning. Think about how much of an impact 40% can have. If you’re training for a marathon, would you want to run 36.5 miles? Or stick with 26.2, which is 40% less of a trek. When you’re figuring out how much you need to save for retirement, isn’t it good to know that about 40% of your goal is automatically covered?
An easy way for workers to understand the role Social Security will play in their retirement is to go online to create a free my Social Security account today and get an estimate of future benefits.
Some of the knowledge gap may instead be a confidence gap. Under the intermediate assumptions of the 2014 Trustees Report, Social Security will be unable to pay full retirement benefits starting in 2033. If nothing is done by our lawmakers, benefits will be cut by about a quarter after 2033. Closing the funding gap would also likely help close the confidence gap.
Kathy Stokes is a communications consultant. She is the director of the American Savings Education Council, a national coalition of private and public sector institutions committed to making retirement planning and saving a priority for all Americans. ASEC is a program of the EBRI Education and Research Fund.
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Tags: retirement, social security, Social Security benefits, SSA
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Kathy Stokes, Director, American Savings Education Council
Director, American Savings Education Council
Comments
Comments are closed.
Melinda
Since I started my SSI in Oct, my neighbor told me about the Silver Sneaker program. Am I eligible for this?
paul m.
i am looking for info on the silver sneakers health benefit
Ray F.
Please contact Medicare at http://www.medicare.gov for information on this topic.
Carol S.
I am almost 67 years old. I am receiving social security benefits. Am I able to get the silver sneakers benefit so that I can go free to my local recreation center that participates in the silver sneakers program? If so, what do I have to do?
Ray F.
Please contact Medicare at http://www.medicare.gov for information on this topic.
Aaron M.
how do i sign up for silver sneakers
Ray F.
Please contact Medicare at http://www.medicare.gov for information on this topic.
Brent H.
Just trying to find out about the silver sneakers program
Ray F.
Please contact Medicare at http://www.medicare.gov for information on this topic.
Clayton D.
I am on social security retirement and receive medicare benefits A & B.. How do I receive a silver sneakers number or card?
Ray F.
If your Medicare card was lost, stolen, or destroyed, you can ask for a replacement by using your online my Social Security account.
Nancy E.
Does my Silver Sneakers card require renewal? Will it continue to cover the cost of the workout center I attend?
Stock t.
I agree with the article posted regarding Community college.
Mina
Stay with this guys, you’re hepling a lot of people.
Glenn G.
How do my wife and I apply for the Silver Sneakers program?
Ray F.
Hi Glenn. Generally, your health plan coordinator will be able to provide information about the Silver Sneakers program. You can also contact Medicare directly at 1-800-633-4227.
George
Back in 1983, the law was changed and my full retirement age went from age 65 to age 67 and that was supposed to “fix” social security. I have to work two more years than previous generations to receive full benefits. Now, we are being told that in 2033 the money will run out and we will get 23% LESS than we were promised. What have you done with the money? I’ve been working and paying into Social Security since I was 14 years old. You guys have been taking money from me and my employers for 37 years and you will be getting at least another decade of my money and my employers contribution. WHERE IS THE MONEY YOU ARE TAKING FROM ME GOING? I have been paying in to fund my retirement and so far, I have lost 2 years of full retirement benefits and will be losing another 23% of the benefits promised. I’m NOT happy.
Hannah
j’ai quelques petits commentaires à faire quant aux phso&to#8230; pour les chiffres 2 et 9 : est ce que les auteurs pourraient me donner quelques précisions car je n’ai pas su les interpréter. Pour le chriffre 19, Cinderela bravo j’aime bcp, mais ce ne serait pas un peu triché d’avoir utilisé les chiffres romains? 😉 et puis Galileo, tu n’avais pas pricisé que le meme photographe pouvait participer plusieures fois…je sais je conteste bcp!! 😉