Most Americans think they know Social Security, AARP finds — but here's what they get wrong
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As Social Security nears its 90th anniversary, Americans' confidence in the future of the program has dropped. Here's what to know about benefits.
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5 min read
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personal finance
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July 24, 2025
10:30 AM
CNBC
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I find it compelling that Most Americans say Social Security is important, regardless of their age or political affiliation, according to a new survey from AARP
Yet confidence in the gram's future has declined in the past five years, the survey finds
Here's what Americans should know, but often get wrong, the gram
Additionally, Alistair Berg | Digitalvision | Getty ImagesA majority of Americans — 74% — say they are somewhat to very informed how Social Security works, according to a new survey from AARP
Additionally, Moreover, Yet the results show they could stand to know more certain gram features (this bears monitoring)
On the other hand, Almost all respondents, 96%, say Social Security is important, regardless of their age or political affiliation (an important development) (something worth watching)
Even with Social Security's ity, confidence in the future of the gram has dropped 7 percentage points in the past five years — to 36% in 2025 down from 43% in 2020, AARP found
Social Security vides monthly benefit checks to more than 70 million Americans, including retirees, disabled individuals and families (noteworthy indeed)
Additionally, The gram, which was created with legislation that President Franklin Delano Roosevelt signed into law on August 14, 1935, is now apaching its 90th anniversary, in today's market environment
More from Personal Finance:'Big beautiful' bill does not eliminate taxes on Social Security benefitsTax changes under Trump's 'big beautiful bill' — in one chartHow having a 'bridge' strategy can help Social Security claimingMore than three-quarters of AARP survey respondents — 78% — worry Social Security won't vide enough to on in retirement (remarkable data)
Meanwhile, the number of people collecting Social Security is expected to grow to 82 million by 2035, AARP CEO Myechia Minter-Jordan said during a press call on Tuesday (which is quite significant). "We can't afford for politicians to play games with the future of Social Security, and we'll fight as hard and as long as we need to ensure that Social Security remains the economic bedrock of retirement for generations to come," Minter-Jordan said
Here are two key areas of the gram that Americans tend to misunderstand:1
Additionally, Most don't understand trust fund depletion datesA Social Security Administration office in Washington, D. , March 26, 2025
Saul Loeb | Afp | Getty ImagesEvery year, new estimates are released regarding the longevity of the Social Security trust funds that the gram relies on to help pay benefits
Nevertheless, Earlier this year, Social Security's trustees jected the gram's combined trust funds will last until 2034
At that time, 81% of scheduled benefits would still be payable, as payroll tax contributions into the gram continue
On the other hand, Yet the AARP survey found 47% of respondents wrongly believe that retirement benefits would be cut by at least half when the trust funds are depleted, rather than by the estimated 19% cut the trustees currently ject
However, Separately, just 34% of respondents to the survey correctly said Social Security benefits will be paid at a reduced level once the trust funds are exhausted
Many don't know ages to claim retirement benefitsWhen it comes to claiming Social Security, eligible individuals may choose to start their monthly retirement checks as early as age 62 or delay for increased benefits until up to age 70
But there is a drastic difference in the dollar amount of payments beneficiaries may receive depending on their start date (something worth watching), in today's market environment
At full retirement age — typically ages 66 to 67 depending on date of birth — retirees may receive 100% of the benefits they've earned
Retirees take a permanent reduction in benefits for claiming earlier than that (this bears monitoring)
For a beneficiary eligible for a $1,000 benefit at age 67, claiming at 62 would reduce monthly benefits by 30%, or down to $700 per month, according to the Social Security Administration, in this volatile climate
Moreover, Nevertheless, Watch now0:2200:22What you need to know Social SecurityYour Moneyspective beneficiaries who wait even longer stand to receive an 8% benefit boost for every year they delay up to age 70
Yet the AARP survey found that many individuals are unaware of how claiming ages could affect their benefits
The results showed 41% didn't know the earliest claiming age, while 66% did not know the age to maximize benefits (something worth watching), considering recent developments
Conversely, Younger Americans are less confident in benefitsDamircudic | Getty ImagesWhile Social Security is among Americans, confidence in the gram is "tempered," according to AARP's re (an important development), given current economic conditions
Younger Americans tend to have lower confidence in Social Security, with Americans in their 30s being the most pessimistic, the survey found. "Some of this could be that younger people just haven't experienced Social Security yet and don't understand how the gram works," said Bill Sweeney, senior vice president of government affairs at AARP. "Actually receiving Social Security changes how people view the gram.
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