Many Early Filers for Social Security Despite Potential Benefits of Waiting

Many Americans are aware that delaying their Social Security benefits can lead to higher monthly payments, yet a significant number still opt to claim them early. Recent research from Schroders, a global asset management firm, reveals just how much anxiety about retirement income affects these decisions.

According to the 2025 American Retirement Survey by Schroders, around 87% of non-retired Americans experience at least some level of worry regarding financial stability once their regular paycheck ceases. Over half of the respondents fear depleting their savings, which seems to be a key factor in their choice to apply for benefits sooner rather than later.

The survey indicates that 44% of those not retired plan to start claiming benefits by age 67, which is the full retirement age for individuals born after 1960. In stark contrast, only 10% anticipate waiting until age 70, when benefits would be maximized.

It’s not a lack of knowledge that drives these choices. About 70% of survey participants understand that postponing benefit claims could lead to larger monthly payouts. Yet, many people’s worries about their financial futures compel them to opt for early claims.

The primary reasons for this inclination include:

• 37% want immediate access to their funds.
• 36% are uneasy about the potential underfunding of Social Security.
• 34% feel they require income sooner to meet their expenses.
• 15% mentioned being encouraged by others to claim early.

Deb Boyden, who heads U.S. defined contribution at Schroders, emphasized the importance of the income from Social Security in retirement planning. There’s a clear trend of anxiety fueled by news reports questioning Social Security’s viability, which has pushed many workers to seek benefits sooner. However, considering that many face significant savings shortfalls, delaying claims could ultimately help improve their financial standing during retirement.

On average, non-retired individuals believe they need about $5,032 each month for a comfortable retirement. To reach this goal, they typically rely on savings, workplace benefits, investment income, and possibly their spouse’s pension.

A concerning number of people are unsure how long their savings will last. In fact, non-retired participants are split on whether they believe they can maintain at least 75% of their pre-retirement income. This uncertainty likely contributes to the 54% who expressed fears about losing their regular paycheck, with 23% describing the prospect as “terrifying.”

Interestingly, those who have already retired share similar concerns. Approximately 62% of retirees lack clarity on how long their savings might sustain them, and nearly 60% wish they had planned better prior to retirement.

Surprisingly, most retirees live on significantly less than they did during their work years. The survey found that 74% of retirees replaced less than 75% of their last paycheck, with 46% living on under half of that amount.

About half of retirees don’t have a clear strategy for generating income in retirement, relying instead on a mix of planned withdrawals, certificates of deposit, and dividend-generating investments.

As fears mount about financial stability in retirement, there’s a notable desire for more support. A staggering 90% of participants in workplace plans expressed interest in investment products that could help grow wealth while managing risk.

Boyden stressed that employers, advisors, and asset managers all have important roles in simplifying retirement income plans. Given the current worries about claiming Social Security early, providing tools that reduce uncertainty could significantly benefit future retirees.