Most Americans believe they understand Social Security, AARP survey shows — but key details still trip them up

In the United States, Social Security has long served as a foundational support system for retirees, disabled individuals, and surviving family members. It is one of the most popular and widely used federal programs, with more than 70 million Americans receiving benefits as of 2025. And yet, according to a new AARP survey, most Americans still get key aspects of the program fundamentally wrong. These misunderstandings aren’t just small mistakes. They can affect when and how people claim benefits, how they vote on proposals to “fix” the system, and how they plan for retirement in the face of increasing uncertainty.

The 2025 AARP survey reveals a complicated paradox. On the one hand, nearly three-quarters of Americans—74 percent—say they feel informed about how Social Security works. On the other hand, only a minority can accurately answer basic questions about benefit levels, trust fund timelines, and optimal claiming strategies. The disconnect between perceived knowledge and actual understanding is particularly dangerous in a political climate where misinformation can drive policy changes with long-term consequences.

The popularity of Social Security is not in question. An overwhelming 96 percent of survey respondents, regardless of age or political affiliation, say the program is important. But confidence in the program’s future is steadily declining. In 2020, 43 percent of Americans expressed confidence in Social Security’s long-term viability. By 2025, that number had fallen to 36 percent. This erosion of trust is happening despite the fact that Social Security continues to deliver monthly benefits reliably, and the core funding mechanism—the payroll tax—remains intact. What’s driving this gap in perception? Much of it comes down to confusion about the Social Security trust fund and how the system actually pays out benefits.

One of the most misunderstood components of Social Security is the role of its trust funds. Each year, the Social Security trustees release a report estimating how long the trust funds will last. As of 2025, they project that the combined trust funds for retirement and disability benefits will be depleted by 2034. That headline—“trust fund depletion”—has led many people to assume the worst: that Social Security will run out of money entirely. But that’s not what the projections say. In fact, even if Congress does nothing, the system will still be able to pay out about 81 percent of scheduled benefits after 2034 using ongoing payroll tax contributions.

Despite this nuance, 47 percent of AARP survey respondents believe that benefits will be cut by at least half if the trust funds run out. Only 34 percent correctly understand that a reduction of approximately 19 percent is projected. This misunderstanding is more than a numerical error. It opens the door for dramatic, and potentially harmful, proposals to change Social Security under the guise of saving it. Policymakers can exploit public fear by presenting harsh cuts or privatization schemes as necessary corrections. And if people wrongly believe that benefits will disappear altogether, they may be more likely to accept changes that erode the system’s universality and reliability.

Misconceptions don’t stop at the macro level. On a personal financial planning level, many Americans also fail to grasp how the timing of their claim affects the size of their benefit. The earliest age at which someone can begin collecting Social Security retirement benefits is 62. However, doing so comes with a steep penalty. Those who wait until their full retirement age—typically 66 or 67 depending on birth year—can collect their full entitled amount. For those who delay even longer, up to age 70, the system rewards patience with an 8 percent increase in benefits for each year of delay.

The difference is substantial. A hypothetical retiree entitled to a $1,000 monthly benefit at age 67 would receive only $700 per month if they claim at age 62—a 30 percent permanent reduction. By contrast, delaying until age 70 would increase the benefit to approximately $1,240 per month. These numbers are not abstract. They affect real-world decisions about when to stop working, how to budget for healthcare in retirement, and how much personal savings are required to bridge income gaps.

Yet according to the AARP survey, many Americans remain unaware of this critical dynamic. Forty-one percent did not know that age 62 is the earliest claiming age. And 66 percent could not identify age 70 as the age at which benefits are maximized. These blind spots can lead people to make irrevocable choices that limit their income for life. Worse, the individuals most likely to claim early—low-income workers, women, and people in physically demanding jobs—are often the ones most dependent on Social Security for their retirement income. When these individuals make claiming decisions based on misinformation or fear, the long-term consequences can be severe.

The knowledge gap is not evenly distributed across the population. One of the most striking findings from AARP’s 2025 report is how pessimism about Social Security varies by age. Younger Americans, particularly those in their 30s, are the least confident in the program’s future. This generational divide is concerning because it suggests that people who are decades away from retirement already assume that Social Security will not be there for them. Some of this skepticism may stem from political rhetoric that frames Social Security as a failing system. But part of it is also a reflection of experience. Older Americans who currently receive benefits have tangible proof that the system works. Younger workers, by contrast, have only headlines and projections to go on.

This doubt has serious implications. If younger Americans disengage from the political conversation about Social Security, they may forfeit their influence over how the program evolves. That creates a dangerous power vacuum. Policy decisions about benefit formulas, eligibility ages, and payroll tax rates may be made without input from the very people who will be most affected by them in the decades to come. Furthermore, lack of trust in Social Security may lead younger workers to overestimate how much they need to save privately—or worse, to give up on saving altogether in the belief that no amount will ever be enough.

It’s important to note that Social Security is not a static program. It has been adjusted many times since its inception in 1935. The retirement age has increased. The benefit formula has been tweaked. Taxes have gone up. And yet, the core structure has remained intact. That structure—mandatory contributions from workers and employers, pooled into a federal insurance program—has proven remarkably resilient. As the system approaches its 90th anniversary, what it needs is not panic-driven overhaul, but measured, informed stewardship. Small changes made gradually, such as raising the income cap on taxable wages or modifying the cost-of-living adjustment formula, could shore up the program’s finances without undermining its mission.

The path forward depends on clarity. Individuals need to understand how their own decisions—when to claim, how much to save, how long to work—interact with Social Security’s rules. Policymakers need to recognize the difference between genuine reform and disguised erosion. And the media, financial advisors, and community leaders need to stop treating Social Security as either a ticking time bomb or a political football. It is, and should remain, the economic bedrock of retirement security for generations of Americans.

If you’re reading this and thinking about your own retirement, the takeaway is simple: check your assumptions. Don’t rely on vague notions or fear-based headlines. Instead, log into your Social Security account. Look at your benefit projections. Run claiming scenarios using the SSA’s calculator. Talk to a certified financial planner. Understand what waiting actually gets you—and what you give up by claiming early. Ask yourself not just when you want to retire, but how long you’ll need income to last. Think in terms of decades, not months.

Social Security is not going away. But how much you get, and how long it lasts, depends on decisions you make today—and whether those decisions are based on facts or fiction. Misinformation about Social Security is more than a public knowledge issue. It’s a risk exposure. The more you know about the rules, the stronger your financial foundation will be. In a world full of shifting markets and uncertain policy environments, that knowledge is one of the few things you can fully control. And that’s worth more than any monthly check.