Americans Remain Hazy on Social Security Benefit Details

Social Security is fully funded for now, but most Americans lack basic knowledge of the program and risk misusing the benefit, according to the 2025 Annual Retirement Study from the Allianz Center for the Future of Retirement, part of Allianz Life Insurance Co. of North America.

More than half of those surveyed (55%) said they do not know much about Social Security or how it will fit into their plans for retirement. Meanwhile, 46% reported that they worry about maximizing Social Security in retirement. Americans’ retirement plans may be incomplete, but individuals hold the key to unlocking their own critical knowledge about their benefits.

“Information doesn’t cost anything,” says Kelly LaVigne, vice president of consumer insights at Allianz Life. “Everyone should have a basic understanding of what [they are] paying [into].”

The Allianz Center for the Future of Retirement conducted the survey online in January and February, polling 1,000 respondents in the contiguous U.S. with an annual household income of at least $50,000 (individual) or $75,000 (married/partnered) or with investable assets of at least $150,000.

Differences in Planning

Only 39% of respondents said they have a plan for how they will claim Social Security in retirement. Baby Boomers, the generation closest to—or already in—retirement, made up the cohort most likely to have an idea of how and when they will collect (77%). Just 30% of Generation X and 23% of Millennials said they did.

The results of Allianz’s research do not indicate younger generations are failing to plan for retirement, however—they may just be preparing differently than their older counterparts.

Cerulli Associates found in the September edition of “Cerulli Edge—Americas Asset and Wealth Management Edition” that only 5% of Generation Z and 16% of Millennials expect Social Security to be their primary source of income in retirement, hinting toward younger generations’ skepticism over the program’s future. More than half (58%) of Gen Z and Millennial 401(k) participants said they expect their personal retirement accounts to be their primary source of income in retirement, while only 49% of active 401(k) participants overall said the same.

“Gen Z and Millennials might not be the wealthiest today, but they certainly have time on their side,” says Elizabeth Chiffer, an analyst at Cerulli.

Misconceptions

Allianz found the bulk of Americans have misconceptions about how Social Security works. More than half (55%) of respondents said they think the age at which they may first receive full benefits is 65, when in fact, the full retirement age varies between 66 and 67, depending on birth year. Americans are first eligible for Social Security as early as age 62 and can maximize benefits by waiting to claim until age 70.

The majority (53%) of those surveyed also said Social Security will be a major source of their income in their retirement. Some 21% believe that the benefit alone will fund their retirement. However, Social Security replaces only about 40% of the average worker’s wages when retiring at age 65, according to the Social Security Administration.

To bridge the knowledge gap, Allianz’s LaVigne recommends Americans attend public seminars or log on to the Social Security Administration website to find out more about their benefits. He emphasizes that an individual’s benefits can encompass survivor benefits for eligible family members in addition to benefits earned through their own work history. Becoming knowledgeable need not be an all-day event, either.

“You don’t have to spend an inordinate amount of time [reviewing your benefits],” LaVigne says. “But [they are] yours.”