The Center for Retirement Research at Boston College routinely conducts surveys and studies focused on the Social Security Administration and a recent survey conducted showed that Social Security would benefit if more customers were using online tools to conduct business, especially considering current limited service options that were established in March 2020 due to the COVID-19 pandemic.
The problem, the survey found, is that even though Social Security has invested in web-based tools to allow customers to conduct business online that not enough recent and soon-to-be retirees have bought into applying for benefits and managing accounts online. Considering customer service options are limited due to Social Security offices remaining closed it is all more important for Social Security to develop ways to increase online usage. Below is a summary of the research conducted by the Center for Retirement Research at Boston College.
The Survey
About 60 percent of respondents submit (or intend to submit) their benefit application online, but only 43 percent claim (or intend to claim) benefits completely online – that is, claim benefits without interacting with an SSA representative by phone or in-person during the process. Reasons for contacting SSA rep during the claiming process included 1) distrust of online tools and a preference for in-person interactions, 2) obstacles to using SSA’s online services – such as data errors or a general lack of awareness of SSA’s online tools, 3) straightforward inquiries about benefits – most of which could probably be handled online, and 4) more complex inquiries regarding things like spousal benefits or the tax implications of receiving SS income. In general, younger respondents were more likely to exhibit a high level of comfort with online financial services.
Policy Implications
Only 70 percent of the roughly 50 percent currently submitting online benefit applications – about 35 percent of retirees – claim completely online. The share of retirees who claim completely online could be increased significantly through policies that 1) help more retirees find answers to their basic inquiries online and 2) reduce the impediments retirees encounter when they do try to use SSA’s online tools. These policies, combined with the incremental impact from greater comfort with online services among younger cohorts, could increase the share of retirees claiming completely online by about 20 percentage points in ten years.
