Many Americans know that waiting to claim Social Security can boost their monthly benefit — yet most still plan to file early. A new study from global asset management firm Schroders highlights how concerns about retirement income are shaping decisions about when to start collecting benefits.
About 87% of non-retired Americans say they’re at least somewhat concerned about how to generate income once regular paychecks stop, according to the Schroders 2025 U.S. Retirement Survey. More than half worry about outliving their savings, and those anxieties appear to be influencing when they expect to file for Social Security.
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The survey found that 44% of non-retirees plan to claim benefits before age 67, the full retirement age for those born in 1960 or later. Just 10% expect to wait until age 70, when benefits reach their maximum value.
These choices aren’t due to lack of knowledge around the subject. About 70% of respondents said they understand that delaying benefits results in higher monthly payments. But concerns about future finances still push many toward earlier filing.
The top motivations for this include:
37% who want access to the money right away
36% who fear that Social Security could run short on funds
34% who need the income sooner to cover expenses
15% who said they were advised to claim early
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“The income generated from monthly Social Security payments is critical to making ends meet in retirement for many Americans,” said Deb Boyden, head of US defined contribution at Schroders. “Clearly, reports questioning Social Security’s solvency have workers anxious to tap into their benefits sooner rather than later, but with many Americans facing a large savings gap, holding off on claiming benefits can have a meaningful impact on your finances in retirement.”
On average, non-retired survey participants believe they’ll need about $5,032 per month to retire comfortably. To achieve that, they expect to rely on a mix of cash savings, workplace retirement plans, investment income, spouse’s workplace plans, and a spouse’s pension.
Even with these sources, many workers aren’t sure how far their savings will stretch. Non-retirees are evenly split on whether they’ll be able to replace at least 75% of their final paycheck in retirement. This uncertainty may be contributing to the 54% who say the idea of losing regular paychecks is concerning — and the 23% who describe it as “terrifying.”
Those who have already retired echo similar concerns. Roughly 62% say they don’t know how long their savings will last, and nearly six in ten wish they had done more planning before leaving the workforce.
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Most retirees live on significantly less income than they earned while working. According to the survey, 74% of retirees replace less than 75% of their last paycheck, and 46% live on less than half.
About half of retirees also lack a structured strategy for generating retirement income. Among those who do, common approaches include systematic withdrawals, CDs, and dividend-producing investments.
As concerns continue to rise, many workers say they want more help. Most workplace plan participants, 90%, expressed interest in an investment product designed to grow assets while managing risk.
Boyden said that employers, advisors, and asset managers all play a role in simplifying the retirement income equation. With so many Americans planning to claim Social Security early — despite understanding the benefits of waiting — tools that reduce uncertainty could make a meaningful difference for future retirees.
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This article Almost Half Of Non-Retirees Plan To File For Social Security Before Age 67, And Only 10% Plan To Wait Until Age 70 originally appeared on Benzinga.com
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