{"id":829550,"date":"2025-03-25T10:06:32","date_gmt":"2025-03-25T14:06:32","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/t-rowe-price-retirement-savers-lack-knowledge-of-social-security-benefits-with-younger-generations-pessimistic-about-future-payments\/"},"modified":"2025-03-25T10:06:32","modified_gmt":"2025-03-25T14:06:32","slug":"t-rowe-price-retirement-savers-lack-knowledge-of-social-security-benefits-with-younger-generations-pessimistic-about-future-payments","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/t-rowe-price-retirement-savers-lack-knowledge-of-social-security-benefits-with-younger-generations-pessimistic-about-future-payments\/","title":{"rendered":"T. ROWE PRICE: RETIREMENT SAVERS LACK KNOWLEDGE OF SOCIAL SECURITY BENEFITS, WITH YOUNGER GENERATIONS PESSIMISTIC ABOUT FUTURE PAYMENTS"},"content":{"rendered":"
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PR Newswire<\/p>\n<\/p><\/div>\n

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\n Education is Key to Closing the Social Security Knowledge Gap and Restoring Confidence in the System<\/i>\n <\/p>\n

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\n BALTIMORE<\/span>
\n <\/span>, March 25, 2025<\/span><\/span> \/PRNewswire\/ — T. Rowe Price<\/span>, a global investment management firm and leader in retirement, published a new white paper today revealing that many retirement savers, including pre-retirees, lack a basic understanding of Social Security benefits. Given the complexity of the system, this knowledge gap is understandable, but it underscores the urgent need for better education and guidance around this critical aspect of retirement planning. The paper features the latest findings from the firm’s annual Retirement Savings and Spending Study, conducted in 2024, which explores the financial attitudes and behaviors of 401(k) savers.<\/p>\n

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Despite having the highest accuracy rates on Social Security questions presented in the survey, older respondents still had notable gaps in knowledge. While nearly all pre-retirees (aged 50 and older) understood that a reduction in benefits occurs when Social Security is claimed before full retirement age, fewer (62%) understood that the benefits increase if they delayed their claim beyond the full age. Additionally, only 45% of those over the age of 50 knew their approximate Social Security benefit amount. Younger respondents, particularly Generation Z and millennials, showed even less understanding. While 80% knew that Social Security is funded by payroll taxes, two-thirds incorrectly believed that benefits automatically start at age 65 if not claimed earlier.<\/p>\n

Meanwhile, confidence in Social Security’s ability to pay out currently scheduled benefits was remarkably low among survey respondents, with only 38% expressing confidence. Pessimism was particularly prevalent among younger generations, with both Gen Z and millennials expecting to only receive just over half of their currently scheduled benefits. In contrast, baby boomers anticipate receiving 88% on average.<\/p>\n

The white paper<\/a> further examines this knowledge gap and pessimism as well as the popularity of potential solutions to the long-term funding challenges of the program.<\/p>\n

Additional key findings include:<\/p>\n