7 out of 10 Americans age 45+ doubt they will receive full Social Security benefits as promisedResults of the 2021 Social Security Confidence Survey released and provided by PlanGap
ATLANTA–(BUSINESS WIRE)–PlanGap, a product innovation company creating a new class of retirement insurance solutions, released the results of the 2021 Social Security Confidence Survey of 1,048 U.S. adults conducted online after the Social Security Board of Trustees released their Annual Report on August 31, 2021.
Participants in the survey consisted of 46.08% males and 53.92% females, over the age of 45, from different socioeconomic groups and political affiliations.
In line with the 2021 forecast from the Social Security Board of Trustees, survey respondents were informed that estimated Social Security benefits are based on current law. Congress has made changes to the law in the past and can do so at any time. The law governing benefit amounts may change because, by 2033, the payroll taxes collected will be enough to pay only about 76% of scheduled benefits. The survey found:
- 70.71% of survey respondents had “a lot” or “a great deal” of concern that they would not receive their full Social Security benefits as promised to them during their retirement.
- Regardless of political affiliation, 55.35% of survey respondents had little to no confidence that the government would solve the challenge of funding Social Security without reducing their benefits. Furthermore, an additional 27.67% were only “somewhat confident.”
- 12.30% were “not at all confident”
- 24.08% were “not so confident”
- 31.06% were “not at all confident”
- 35.71% were “not so confident”
Independent / Libertarians:
- 32.34% were “not at all confident”
- 32.34% were “not so confident”
When thinking about the potential 24% reduction in Social Security retirement benefits and how stressful a reduction would seem to them:
- 14.31% compared the stress of a reduction to being diagnosed with Cancer
- 11.26% compared the stress of a reduction to getting a divorce
- 10.97% compared the stress of a reduction to a global pandemic
- 10.88% compared the stress of a reduction to getting into a car accident
- 10.59% compared the stress of a reduction to the death of a loved one
- 7.44% compared the stress of a reduction to starting a new job
- 7.35% compared the stress of a reduction to being pulled over for a speeding ticket
- 7.35% compared the stress of a reduction to being late for a meeting
- 6.49% compared the stress of a reduction to a terrorist attack
When survey respondents were asked what they believe will be the primary solution Congress will use to fix Social Security’s funding challenges:
- 25.48% believe Congress will increase the age at which people become eligible
- 21.18% believe Congress will reduce benefit amounts for high earners
- 20.71% believe Congress will just borrow more money
- 18.70% believe Congress will increase payroll taxes
- 8.97% believe Congress will make benefit reductions permanent for all recipients
- 4.96% believe Congress will make benefit reductions temporary for all recipients
In response to the survey results, PlanGap Founder and CEO, David Duley remarked, “Many Americans have a sense that something is wrong with Social Security and this data just confirms that deeply held concern. The truth is, Social Security is the foundation of most retirement income plans and the government has announced that it may not be able to pay in full and honor those promises. People are looking for ways to have more control over their retirement income and protect their Social Security benefits from being used as a political football.”
Headquartered in Atlanta and founded in 2017, PlanGap is a product innovation company creating a suite of “trigger-based” annuity and life insurance products – retirement insurance – that solve previously unaddressed financial concerns for retirees. PlanGap, through its insurance carrier partners, empowers people to protect themselves against disruptions to their retirement income, providing solutions for those worried that institutions have made retirement promises they cannot, or will not, keep. Visit plangap.com for more information.