ICFE eNEWS #15-18 - June 10th 2015
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A Teachable Moment:
Younger Workers and Social Security

Online "my Social Security Accounts" Could Help Workers Better
Understand the Role of Social Security Benefits in their Retirement

WASHINGTON, DC ― Analysis from the nonpartisan Employee Benefit Research Institute (EBRI) shows that younger workers are twice as likely as older workers to believe that Social Security will not be a part of their retirement income. EBRI published insights on perceptions about Social Security today as a follow-up to its 2015 Retirement Confidence Survey (RCS), released on April 21.

Looking at various demographic breakdowns, the analysis finds that workers age 45 and under, particularly men in this age group, are dubious that they will receive Social Security benefits in retirement. Those who thought Social Security would be a source of income were more likely to see a financial advisor.

For instance, 26% of those younger than age 45 believe Social Security will not be a source of income in retirement, compared with 13% of those over 45. Younger men are more likely (29%) than younger women (21%) to say Social Security will not be an income source in retirement.

A 2015 RCS Fact Sheet on young workers' perceptions of Social Security income is available online.

"It appears we have a ‘teachable moment' for today’s younger workers when it comes to Social Security benefits," explains Kathy Stokes, director of the American Savings Education Council (ASEC). "For the average worker, Social Security may replace about 40% of preretirement income. It’s important that workers factor this benefit into their retirement planning."

Stokes said an easy way for workers to understand the role Social Security will play in their retirement is to go online to to create a free personalized benefits estimate. Further, the Social Security Administration hosts a dedicated web page for young workers

ASEC, America Saves, and the Women’s Institute for a Secure Retirement launched the "Campaign for a Secure Retirement: Helping Millions of Americans Plan and Save for Retirement" last month. The campaign is a joint effort to encourage retirement planning and saving and promote the online Social Security Statement as an important retirement planning tool.

Organizations can join the effort and help the public understand the importance of saving for retirement by signing up here.

Social Security perceptions and other findings are contained in the 2015 RCS, conducted by EBRI and Greenwald & Associates and the longest-running survey of its kind in the nation. Full results are published in the April 2015 EBRI Issue Brief, "The 2015 Retirement Confidence Survey: Having a Retirement Savings Plan a Key Factor in Americans’ Retirement Confidence," available online at EBRI's website. Several additional fact sheets are online here.

The ICFE is a member of The American Savings Education Council (ASEC), which is a national coalition of private- and public-sector institutions committed to making saving and retirement planning a priority for all Americans. ASEC is a program of the Employee Benefit Research Institute Education and Research Fund.
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Sent by:

Paul S. Richard
President - Executive Director
Institute of Consumer Financial Education (ICFE)

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