The vast majority agree a candidate's stance
on Social Security reform will be a major factor in how they vote
in the 2024 presidential election
COLUMBUS, Ohio, July 30,
2024 /PRNewswire/ -- Americans are increasingly
alarmed about the Social Security system's solvency and more than
three in four (79%) U.S. adults believe the Social Security system
needs to change, according to the 11th edition of
Nationwide Retirement Institute's annual Social Security
survey.
The 2024 survey found that nearly three-quarters (72%) of
adults worry the Social Security system will run out of funding in
their lifetime. This concern is particularly pronounced among
millennials (79%) and Gen Xers (77%), compared to Gen Z (66%) and
boomers+ (66%). Alarmingly, almost one in four (23%) believe they
will not get a dime of the Social Security benefits they have
earned.
"Though Americans' heightened anxiety around the Social Security
program is not surprising, it is now more important than ever for
them to have a retirement plan that hedges against the possibility
of receiving less in benefits than expected," said Tina Ambrozy, senior vice president of
Strategic Customer Solutions at Nationwide. "We are in an opportune
time for financial professionals to empower their clients to plan
for the future and build long-term financial resilience."
Key reforms supported by Americans
Social Security reform is top of mind for many Americans, as 69%
report that a candidate's stance on the topic will be a major
factor in how they vote in the upcoming U.S. presidential election.
With that in mind, many are voicing their opinions on ways the
system needs to change.
Notable proposed changes that Americans support include raising
the minimum eligibility age from 62 to 64 for all future retirees
aged 50 or younger (66%) and increasing the full retirement age
from 67 to 69 on all future retirees ages 50 or younger (51%).
Interestingly, these proposals have bipartisan support with 68% of
Democrats and 69% of Republicans backing the first and 50% and 51%,
respectively, favoring the second.
Other proposed changes to the Social Security system
include:
- Increasing taxes on higher earners to increase funding
(47%)
- Decreasing taxation on benefits (40%)
- Increased funding through employer taxes (34%)
Knowledge gaps and the need for education
Despite desiring change in the system, many Americans still do
not fully understand how the Social Security system works. In fact,
more than half of respondents (51%) admit they do not know exactly
how to maximize their Social Security benefits and one-third (33%)
are uncertain about the age at which they are or were eligible for
full retirement benefits.
Unfortunately, this knowledge gap has grown over the last
decade. When this survey was conducted in 2015, 86% of respondents
aged 50+ knew that Social Security could offer benefits for their
spouse or children, whereas only 74% knew this in 2024. Similarly,
66% of respondents aged 50+ knew that divorced adults may be
eligible for Social Security benefits based on their ex-spouse's
record, whereas only 52% answered this correctly in 2024.
Furthermore, two-thirds (66%) of U.S. adults did not know or
were unsure that Social Security is protected against inflation,
and a mere 4% could identify all five factors that determine the
maximum Social Security benefit. This growing knowledge gap
highlights the need for better education and resources to help
Americans understand how this important element of their retirement
plan will contribute to their financial security in the future.
Despite growing concerns, many Americans are not taking
action
Although Americans' widespread concerns about Social Security
solvency are apparent, many are not taking proactive steps to
secure their financial futures.
Almost half (47%) report that they do not pay to work with a
financial professional and do not want one. In addition, 55% of
U.S. adults who do not pay to work with a financial professional
have no plans to seek advice about Social Security benefits from
one. However, the good news is that the majority are open to
learning more from a financial professional. For example, when
thinking about managing their savings for retirement, three in four
(75%) expressed interest in discussing savings or investment
options to guarantee specific income levels during their
retirement.
"Given Americans' increasing worries about the future of Social
Security, it is concerning to see that many have yet to take
proactive steps to secure their retirement," added Ambrozy.
"Seeking guidance from a financial professional can make a
significant difference in maximizing Social Security benefits and
ensuring financial stability in retirement. We encourage everyone
to take action now to better understand their options and safeguard
their financial futures."
Nationwide offers a variety of resources to help. The Nationwide
Social Security 360 Analyzer® can help financial professionals
assess a client's goals to better advise on the optimal time to
claim Social Security. To learn how to optimize Social Security
benefits, visit http://www.nationwide.com/SocialSecurity. Financial
professionals can visit
www.nationwidefinancial.com/SocialSecurity.
Methodology
The research was conducted online in the U.S. by The Harris Poll
on behalf of Nationwide among 1,831 adults age 18+ who currently
receive or expect to receive Social Security ("national sample"),
including 313 Gen Z (age 18-27), 506 millennials (age 28-43), 506
Gen Xers (age 44-59), and 506 boomers+ (age 60+). The survey
was conducted April 19-May 13,
2024.
About The Harris Poll
The Harris Poll is one of the longest running surveys in
the U.S. tracking public opinion, motivations, and social
sentiment since 1963 and is now part of Harris Insights &
Analytics, a global consulting and market research firm that
delivers social intelligence for transformational times. We work
with clients in three primary areas: building 21st
century corporate reputation, crafting brand strategy and
performance tracking, and earning organic media through public
relations research. Our mission is to provide insights and advice
to help leaders make the best decisions possible. To learn more,
please visit www.theharrispoll.com.
About Nationwide
Nationwide, a Fortune 100 company based in Columbus, Ohio, is one of the largest and
strongest diversified financial services and insurance
organizations in the United
States. Nationwide is rated A+ by Standard & Poor's. An
industry leader in driving customer-focused innovation, Nationwide
provides a full range of insurance and financial services products
including auto, business, homeowners, farm and life insurance;
public and private sector retirement plans, annuities and mutual
funds; excess & surplus, specialty and surety; and pet,
motorcycle and boat insurance.
For more information, visit www.nationwide.com.
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This material is not a recommendation to buy or sell a financial
product or to adopt an investment strategy. Investors should
discuss their specific situation with their financial
professional.
This information is general in nature and is not intended to be
tax, legal, accounting, or other professional advice. The
information provided is based on current laws, which are subject to
change at any time, and has not been endorsed by any government
agency.
Nationwide and The Harris Poll are separate and non-affiliated
companies.
Nationwide Investment Services Corporation (NISC), member FINRA,
Columbus, OH. Nationwide
Retirement Institute is a division of NISC.
Nationwide, the Nationwide N and Eagle, Nationwide is on your
side and Nationwide Retirement Institute are service marks of
Nationwide Mutual Insurance Company. Social Security 360 Analyzer
is a service mark of Nationwide Life Insurance Company. © 2024
NFM-24117AO
Contact:
Charley
Gillespie
(614) 249-6349
charley.gillespie@nationwide.com
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