The challenges facing the Social Security system are well-known and deep-seated. Nonetheless, significant confidence about the future of the system persists among pre-retirees, a new study shows.
Kiplinger and Personal Capital report that they found their 2020 Retirement Survey that nearly two-thirds of respondents are at least somewhat confident that Social Security will provide the amount they expect it to. And more than one-third are very confident about that.
And while they are not quite a majority, more respondents expect to retire at the “normal” retirement age of 66-67 than at any other age. Further, just over one-third expect to retire when they are younger than that, between the ages of 62 and 65. Just 17% expect to retire at age 68 or older.
But confidence about the likelihood that Social Security will provide some retirement income and that retirement can be “on time” or early does not mean that respondents expect that much from Social Security. The researchers also report that respondents have low expectations, with the median amount of living expenses respondents expect that Social Security will cover is just 27%.
How to fix Social Security? A strong majority of respondents look to gradually raising the full retirement age (4%) or increasing the wages subject to a Social Security payroll tax (39%). Just over 30% suggest lowering Social Security benefits for higher-income retirees.
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