Obstacles and Aversion Hinder Applying Online for Social Security

Baby boomers approaching retirement are driving up demand for Social Security Administration (SSA) services at a time when the agency’s ability to provide these services is being constrained by tight budgets and departing staff.

Since 2013, the percentage of retirees filing for benefits online has remained at or near 50%, despite the SSA’s investment in tools with great labor-saving potential.

To gather more information on how people claimed or intended to claim their retirement benefits, the Center for Retirement Research (CCR) surveyed 2,600 people between the ages of 57 and 70. The survey asked respondents about their interactions with the SSA as well as their approach or intended approach to claiming benefits.

Share of All Respondents, by Reasons for Contacting SSA Before Applying

The results indicate that during the claiming process, a sizable portion of online applicants interact with an SSA official. Even though 60% of survey respondents have applied or plan to apply online, just 43% have submitted their claims entirely online.

CCR split the explanations given by respondents for contacting an SSA representative into four groups: issues that required contacting an SSA representative (e.g., particular spousal benefits); general aversions to using online services due to data privacy concerns and other issues; questions that could have been handled online but weren’t; and various obstacles such as data errors.

A sizable portion of retirees will still file benefits claims in person for the foreseeable future. Nonetheless, shifting demographics and new policies could increase the number of people who file online. CCR expects more retirees will file claims entirely online in the future as younger cohorts become accustomed to using online resources. Website usage could also be increased where the SSA makes it easier to find answers online and lessen barriers that retirees face when they do attempt to use the SSA’s online tools.

Source: “How to Increase Usage of Social Security’s Online Tools,” by Jean-Pierre Aubry; Center for Retirement Research at Boston College, January 2022, Number 22-1.