When planning for retirement, Americans often receive advice to defer claiming Social Security benefits until age 70 to maximize their payouts. However, a recent survey indicates that a significant majority of individuals nearing retirement do not intend to follow this recommendation.
According to a 2025 survey on retirement by asset management firm Schroders, a mere 10% of American investors plan to postpone their Social Security claims until age 70. This reluctance to wait is not due to a lack of awareness; 70% of respondents acknowledged that delaying claims would result in higher monthly payments. Specifically, benefits increase by 8% annually for each year claimants wait, up to age 70.
The primary reasons cited by respondents for collecting benefits earlier than advised include the immediate need for funds at age 62, the necessity of these funds for regular retirement income, and anxieties about the long-term viability of the Social Security program. Over half of those surveyed expressed concerns about outliving their savings, and approximately 44% of non-retired individuals anticipate applying for benefits before reaching the full retirement age of 67. The Social Security trust funds are projected to be depleted around 2033, potentially covering only about 77% of promised benefits thereafter, which fuels these concerns.
For those approaching or already in retirement, the decision of when to begin collecting Social Security benefits should be carefully considered based on individual financial circumstances. Understanding the potential benefit amounts at various ages is crucial. It is advisable to consult a professional financial advisor to navigate these complex decisions and develop a retirement plan tailored to one's specific situation, ensuring financial security and peace of mind.