--- title: This Social Security Quiz Stumps Over 40% of People Nearing Retirement description: When quizzed about Social Security, many Americans nearing retirement age lack basic knowledge, according to new data. authors: - name: Mary Ellen Cagnassola role: Reporter url: https://money.com/author/mary-ellen-cagnassola/ bio: Mary Ellen (M.E.) Cagnassola is a former Money reporter specializing in Social Security and retirement coverage, with a focus on making complex policy accessible to readers. education: Rutgers University, BA Journalism at_money_since: 2021 articles: 205 covers: - Retirement - Banking - Business - Career Advice - Credit - Credit Cards - Economy and Politics - Education - Housing - Identity Theft - Insurance - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Pets - Professional Services - Shopping - Taxes former_staff: true editors: - name: Julia Glum role: Managing Editor url: https://money.com/author/julia-glum/ bio: Julia Glum joined Money in 2018 and specializes in covering financial trends that affect everyday Americans' wallets. She also writes Dollar Scholar, a weekly newsletter that teaches young adults how to navigate the messy world of money. education: University of Florida at_money_since: 2018 articles: 453 covers: - Retirement - Banking - Business - Career Advice - Credit - Credit Cards - Debt - Economy and Politics - Education - Health and Wellness - Housing - Identity Theft - Insurance - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Professional Services - Shopping - Taxes - Technology also_seen_in: - Newsweek - International Business Times - CBS News - Good Morning America - WUSA9 - Pix 11 - The New York Times - Mashable - The Washington Post - CNBC - Politico social: - https://x.com/superjulia - https://www.linkedin.com/in/julia-glum published: '2024-02-26T21:21:20.000Z' modified: '2024-02-26T21:21:20.000Z' section: Retirement tags: - News word_count: 620 canonical: https://money.com/retirees-social-security-quiz/ type: NewsArticle source: structured-blocks --- > **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/). ![Senior woman using a laptop at home](https://img.money.com/2024/02/News-Retirees-Social-Security-Quiz.jpg) Americans nearing retirement age have some studying to do, judging by the results of a recent test on retirement benefits. More than 40% of 55-to-65-year-old adults who took a [quiz](https://www.massmutual.com/global/media/shared/doc/2024_security_retirement_benefits_report.pdf) on Social Security basics received a failing grade. And while that’s an improvement from last year, the gaps in their knowledge may show a lack of preparation that could hurt them in retirement. ## Put a gold-backed IRA into your golden years ### Gold IRAs are similar to traditional retirement accounts, but they are backed by investments in gold and other precious metals, such as silver, platinum, and palladium. To get started, click on your state. [Invest in Gold](https://money.com/pr/g648fe360239?ap_referrer=%2Fretirees-social-security-quiz%2F) ## Top misconceptions about Social Security In January, insurance company MassMutual surveyed 1,500 U.S. adults between 55 and 65 years old who said they haven’t yet claimed [Social Security benefits](https://money.com/social-security-check-this-month/) (retirees are eligible to do so as early as age 62). The test portion of the poll, which is conducted annually, included about a dozen true-or-false questions about Social Security. Forty-one percent failed, meaning they received a score of 54% or lower. That's actually better than last year, when 47% of respondents failed. This year, 37% scored a D grade, and only about 10% got a B or better. Surprisingly, a little under half of respondents said they think that the full retirement age is 65 (it’s 67). The majority also incorrectly said they believe that a claimant must be an American citizen to collect Social Security benefits (in reality, non-citizens who work in the U.S. can qualify as long as they're permanent legal residents and have a Social Security number). On a question asking whether it’s true that Social Security benefits are subject to income tax like withdrawals from traditional individual retirement accounts, only 38% correctly answered "false." Respondents did better in other areas, though: Over 80% were aware that [continuing to work after claiming Social Security](https://money.com/retirees-work-affect-social-security/) might reduce their income based on how much they make. They were also pretty clear on the fact claiming before the full retirement age will reduce their benefits. ## Older workers aren't ready for retirement MassMutual also found that pre-retirees aren’t very confident in the sustainability of their [retirement income](https://money.com/retire-comfortably-amount-needed/). A whopping 44% said they weren’t sure what percentage of their income would come from Social Security after they stop working, even though 40% said they believe it will be their largest source of income. More than a third said they expect their retirement income to last between 0 and 10 years, an increase from last year’s 27%. Given that the average U.S. life expectancy is about 76 for both sexes, that implies that a good chunk of people think they’ll outlive their savings if they retire at 67. Twenty-seven percent said they expect their income to last 11 to 20 years, and 21% estimate they’ll get by for 21 to 30 years. At the same time, 31% of pre-retirees were uncertain about how much money they’d need to retire comfortably. Twenty-three said they’d need at least $500,000, and 22% think they’ll need $1 million or more. (For what it's worth, government [data](https://www.bls.gov/opub/reports/consumer-expenditures/2021/home.htm#:~:text=Consumer%20Expenditure%20Surveys%2C-,2021%C2%A0,-%5B%2B%5DTable%2015) shows that households 65 and older spent an average of $4,345 a month in 2021, or about $52,000 a year.) A lack of organization could be to blame for pre-retirees' uncertainty about their retirement budgets. The majority said they don’t have all their financial information, including online usernames and passwords, documented yet, but they plan to. Paul LaPiana, head of brand, product and affiliated distribution with MassMutal, advises pre-retirement workers to get on this task ASAP. “Those nearing retirement should make this a priority if they’d like to ensure that they have a say with their finances and health care in their later years, and beyond,” he says. ![](https://s3.consumersadvocate.org/prd/image/image/19305/medium_414558a1-29d4-465e-b5d1-921febc39ed2.png) American Hartford Gold can help you take control of your financial future [Invest in Gold](https://money.com/pr/cdf8db27d320?ap_referrer=%2Fretirees-social-security-quiz%2F) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "BreadcrumbList", "@id": "https://money.com/retirees-social-security-quiz/#breadcrumb", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://money.com" }, { "@type": "ListItem", "position": 2, "name": "Retirement", "item": "https://money.com/retirement/" }, { "@type": "ListItem", "position": 3, "name": "Social Security", "item": "https://money.com/social-security/" }, { "@type": "ListItem", "position": 4, "name": "This Social Security Quiz Stumps Over 40% of People Nearing Retirement" } ] }, { "@type": "WebSite", "@id": "https://money.com/#website", "url": "https://money.com", "name": "Money", "publisher": { "@id": "https://money.com/#organization" } }, { "@type": "WebPage", "@id": "https://money.com/retirees-social-security-quiz/#webpage", "url": "https://money.com/retirees-social-security-quiz/", "name": "This Social Security Quiz Stumps Over 40% of People Nearing Retirement", "isPartOf": { "@id": "https://money.com/#website" }, "datePublished": "2024-02-26T21:21:20.000Z", "mainEntity": { "@id": "https://money.com/retirees-social-security-quiz/" }, "inLanguage": "en-US", "breadcrumb": { "@id": "https://money.com/retirees-social-security-quiz/#breadcrumb" }, "dateModified": "2024-02-26T21:21:20.000Z" }, { "@type": "NewsArticle", "headline": "This Social Security Quiz Stumps Over 40% of People Nearing Retirement", "articleSection": "Retirement", "image": [ { "@type": "ImageObject", "url": "https://img.money.com/2024/02/News-Retirees-Social-Security-Quiz.jpg", "width": 5113, "height": 3409, "caption": "News-Retirees-Social-Security-Quiz" } ], "author": [ { "@type": "Person", "name": "Mary Ellen Cagnassola", "url": "https://money.com/author/mary-ellen-cagnassola/", "@id": "https://money.com/author/mary-ellen-cagnassola/#author", "description": "Mary Ellen (M.E.) 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