Social Security is a crucial lifeline for millions of seniors.

But a revealing new study has shown how a stark knowledge gap may be costing Americans larger payments in retirement.

Only a quarter of Americans are aware that you can maximize your monthly payments by waiting to receive them until the age of 70.

That is according to a study from the American Association of Retired Persons (AARP), timed to coincide with the 90th anniversary of the benefit program.

The research also found that only 40 percent of participants could correctly identify the earliest age that it is possible to start receiving Social Security.

People also lacked knowledge about key aspects of the program, such as spousal payments, which can seriously impact the amount you receive in retirement.

Most people can start claiming Social Security when they turn 62.

However, every year you delay taking a payment after you reach full retirement age you receive a significant increase in payments up to the age of 70.

Benefits taken for the first time at age 70 would be 76 percent higher than if they were claimed at 62, according to Boston University economist Laurence Kotlikoff.

Some people may not have the option to wait to start receiving the benefits, if they are forced into retirement by a job loss or health problems.

But a simple lack of knowledge may be causing some Americans to miss out on higher payments.

According to AARP, only 44 percent of respondents know that divorced people can collect Social Security retirement benefits based on their former spouse’s work record if they were married for at least 10 years.

Some people are simply unaware of the fact that putting off claiming will mean higher benefits for the rest of their life.

Others, however, may be banking their checks as early as possible due to concerns about the future of the program itself.

More than 75 percent of US adults are very worried about the fate of Social Security, according to a recent Gallup poll.

A new forecast released earlier this month pointed to a even shakier future for the program than previously reported.

According to latest projections, Social Security’s retirement fund is set to run short in just seven years, meaning retirees could face automatic 24 percent benefit cuts as early as the end of 2032.

This means a couple who both worked would receive $18,100 less each year if they retire at the start of 2033.

The new forecast from the nonpartisan Committee for a Responsible Federal Budget (CRFB) moves up the insolvency date for both Social Security and Medicare trust funds.

A projection just last month had funds lasting until 2033, but that has already been revised.

A major factor is the impact of President Donald Trump’s ‘Big, Beautiful Bill’, which experts warned would speed up the use of funds.

Social Security relies on its trust fund to provide monthly benefit checks to around 70 million Americans.

Once the reserves are exhausted, federal law requires that benefits be cut to match incoming revenues.

This means payments will continue, but at reduced levels. The cuts would also grow over time as scheduled benefits continue to outpace dedicated revenues, the CRFB said.

Written by Tilly Armstrong for The Daily Mail ~ July 31, 2025