25% of Americans Underestimate Social Security Checks in 2023 By $5,000, Research Says

A study from the National Bureau of Economic Research revealed that 25% of Americans underestimate their Social Security Checks in 2023 by $5,000. On the other hand, 10% of them overestimate the amount of benefits.

A recent study conducted by the National Bureau of Economic Research (NBER) revealed that 25% of Americans underestimate their Social Security Checks in 2023 by $5,167 or more. An average individual underestimates the amount of benefits by $1,896 which is 11.5% of the average benefit distributed.

On the other hand, an article in Yahoo Finance states that 10% of the Americans overestimate their Social Security Checks in 2023 by at least $5,319. However, receiving a bigger amount of monthly checks than what is expected is still not ideal.

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Risks of Underestimating Social Security Checks in 2023

According to an article in GOBankingRates, any miscalculation of the Social Security Checks in 2023 can compromise retirement planning. One risk of underestimating the benefits is that a bigger Social Security payment may increase an individual’s taxable income.

In addition, underestimating the Social Security Checks in 2023 may also mean that a beneficiary lives in abstinence and misses out on the possible quality of life during retirement. It may also lead to some high-risk investments in an attempt to increase retirement income.

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