Most Americans don’t know how Social Security fits into their retirement plan

MINNEAPOLIS – Oct. 21, 2025  – While Social Security is an important source of income in retirement, most Americans lack basic knowledge of the program and could risk misusing the benefit, according to the 2025 Annual Retirement Study from the Allianz Center for the Future of Retirement.

The majority of Americans (55%) admit they don’t know much about Social Security or how it will fit into their retirement plan. That lack of understanding could lead to Americans missing out on strategically using the benefit as part of their overall retirement strategy. At the same time, many Americans (46%) worry about maximizing their Social Security income in retirement.

“Social Security is a key part of a retirement strategy – the benefits provide guaranteed income for a lifetime that increases with cost-of-living adjustments and is tax advantaged,” says Kelly LaVigne, VP of consumer insights, Allianz Life. “But, taking full advantage of the program to best suit your retirement strategy involves careful planning and making informed decisions. Without a plan for Social Security, a retirement strategy is not complete.”

Just 39% of Americans say they have a plan for how they will take Social Security in retirement. Boomers, who are generally between age 60 and 80, are the most likely to say they have a plan for Social Security in retirement (77%). Just 30% of Gen Xers and 23% of millennials said the same.

Worries about the future of Social Security are also on the rise. Two in three (67%) worry that Social Security will not be available throughout their retirement, up from 57% last year.

Americans’ Social Security knowledge gap

Many Americans have misconceptions about how Social Security works and its role in a retirement plan. A few critical knowledge gaps exist for Americans:

• The majority of Americans (53%) say Social Security will be a major source of their retirement income. And some believe that the benefit alone will fund their retirement with 21% saying Social Security is all they need in retirement. Yet, Social Security replaces only about 40% of the average worker’s wages when retiring at age 65¹.
• Most Americans (55%) think the age for receiving full Social Security benefits is 65. In fact, the full retirement age varies between 66 and 67, depending on birth year. Americans are first eligible for the retirement benefit as early as age 62.
• Three in four (73%) say it is best to wait as long as possible to claim Social Security benefits. While delaying claiming Social Security benefits increases the payments, there are other factors to consider. To make an informed decision around when to claim Social Security benefits, Americans need to take into account their health, possible life expectancy, taxes, other sources of retirement income, among other factors. The majority (54%) say they are not sure when it will be best for them to start taking Social Security.

“A financial professional can help educate you on Social Security and how it could fit into a retirement income plan for you,” LaVigne says. “You may want to also consider a source of guaranteed lifetime income in addition to Social Security to ensure you can cover your essential expenses.”