ICFE eNEWS #15-18 - June 10th 2015
View this eNEWS online
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
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
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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Institute of Consumer Financial Education (ICFE)
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