Most People nearing retirement anticipate Social Safety to be their greatest supply of revenue.

But lots of these folks, ranging in age from 55 to 65, are unaware of the fundamentals about this system, in line with new analysis from MassMutual.

About 43% of the 1,500 folks surveyed have no idea how a lot of their revenue will come from Social Safety advantages.

The outcomes to that reply had been “beautiful” for a cohort so near their retirement years, mentioned David Freitag, a monetary planning guide and Social Safety knowledgeable at MassMutual.

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As well as, the agency posed a 13-question true/false quiz to the respondents. The end result: 69% both barely handed or failed. A couple of-third — 35% — of respondents failed. In the meantime, a couple of third — 34% — simply handed with a grade of D.

Most respondents, 84%, know their advantages might be diminished in the event that they declare advantages early.

However about half of respondents nonetheless have no idea how lengthy it pays to attend to assert.

“There isn’t any tangible motive why anyone would ever wait previous age 70,” Freitag mentioned.

To see how properly you’d do on the quiz, determine whether or not the statements under are true or false, and examine your solutions to the important thing under.

True or False:

1. Normally, if I take advantages earlier than my full retirement age, they are going to be diminished for early submitting.
2. If I’m receiving advantages earlier than my full retirement age and proceed to work, my advantages is perhaps diminished primarily based on how a lot I make.
3. If I’ve a partner, she or he can obtain advantages from my document even when she or he has no particular person earnings historical past.
4. Typically, if I’m in a same-sex marriage, there are completely different eligibility necessities relating to Social Safety retirement advantages.
5. If I’ve a partner and she or he passes away, I’ll obtain each my full profit and my deceased partner’s full profit.
6. The cash that comes out of my paycheck for Social Safety goes into a particular account for me and stays there, incomes curiosity, till I start to obtain Social Safety advantages.
7. If I file for retirement advantages and have dependent kids aged 18 or youthful, in addition they could qualify for Social Safety advantages.
8. If I get divorced, I would be capable of gather Social Safety advantages primarily based on my ex-spouse’s Social Safety earnings historical past.
9. Below present regulation, Social Safety advantages may very well be diminished by 20% or extra for everybody by 2035.
10. Below present Social Safety regulation, full retirement age is 65 regardless of while you had been born.
11. If I delay taking Social Safety advantages previous the age of 70, I’ll proceed to get delayed retirement credit score will increase annually I wait.
12. Social Safety retirement advantages are topic to revenue tax similar to withdrawals from a conventional IRA account.
13. I have to be a U.S. citizen to gather Social Safety retirement advantages.

Solutions:

1. True (84% answered appropriately)
2. True (77%)
3. True (72%)
4. False (69%)
5. False (65%)
6. False (60%)
7. True (56%)
8. True (56%)
9. True (55%)
10. False (53%)
11. False (49%)
12. False (38%)
13. False (29%)