How Social Security works? Here’s how many Americans understand the basics as per AARP Survey

How Social Security works? AARP has released a new survey on how well Americans understand Social Security. The findings show that while most people feel informed, many do not fully grasp key parts of the program. The survey also shows growing concern over the future of Social Security, especially among younger generations.

What AARP Survey Says?

According to the AARP survey, 74% of Americans say they are somewhat very informed about how Social Security works. However, the data shows they often misunderstand how the system operates.

Despite the knowledge gap, 96% of respondents agree that Social Security is important. This support cuts across all age groups and political views.


Still, overall confidence in the future of Social Security has dropped. In 2020, 43% of people were confident about its future. That number has now fallen to 36% in 2025.

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Social Security Trust Fund Depletion

Every year, the government gives an update on how long Social Security’s trust funds are expected to last. In 2024, the trustees projected the funds would last until 2034. After that, payroll taxes will continue to support 81% of scheduled benefits.

However, 47% of survey respondents wrongly believe that benefits will be cut by at least 50% if the trust funds run out. The actual projected cut is about 19%.

Only 34% of people correctly answered that benefits would continue at reduced levels after depletion. This shows a lack of understanding about how the trust funds impact future payments.

Social Security Claiming Ages Still Confuse Many

Social Security allows people to begin collecting retirement benefits as early as age 62. They may also delay until age 70 to receive higher monthly payments.

The full retirement age is between 66 and 67, depending on a person’s birth year. At this age, they get 100% of their earned benefits. Claiming at age 62 leads to a 30% reduction.

If someone eligible for $1,000 at age 67 claims at 62, they will receive only $700. On the other hand, delaying beyond full retirement age increases benefits by 8% each year until age 70.

Despite this, the AARP survey found 41% of respondents did not know the earliest age to claim benefits. Also, 66% did not know the age at which benefits are maximized.

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Confidence in Social Security Declines Among Younger Americans

Although Social Security remains widely supported, trust in its future is weakening. This concern is strongest among younger adults.

According to AARP’s research, people in their 30s are the most doubtful about the program’s ability to deliver future benefits.

Bill Sweeney, AARP’s senior vice president of government affairs, said younger Americans may feel this way because they have not yet used the program. He believes experience with receiving Social Security can change how people view it.

The number of people collecting benefits is expected to grow to 82 million by 2035. AARP CEO Myechia Minter-Jordan stressed the need to protect the program for future generations.

FAQs

What happens if Social Security’s trust funds are depleted?
Even after depletion, 81% of benefits will still be paid using payroll taxes. Benefits will not stop completely.

When is the best age to claim full Social Security retirement benefits?
The full retirement age is between 66 and 67. Claiming before that reduces benefits. Delaying up to age 70 increases benefits.