Most Pre-Retirees Are Unwilling to Hold Off on Claiming Social Security: Schroders

A majority of surveyed workers approaching retirement indicated they are unwilling to postpone claiming their Social Security benefits, according to the Schroders 2025 US Retirement Survey, released on Tuesday.

While 70% recognize that delaying their claims would result in higher monthly payments, only 10% intend to wait until age 70 to access their maximum benefits. Meanwhile, 44% said they would claim before 67, which is considered full Social Security retirement age.

The desire and need to access funds at the earliest opportunity, along with concerns about the potential for the program’s benefits to be reduced, were cited as reasons participants are reluctant to delay claiming their Social Security benefits, according to the study.

The Social Security trust funds have enough money to pay full benefits to retirees and other beneficiaries until 2034 before benefit payments will have to be reduced, according to the Social Security Administration Board of Trustees’ annual report, published in June.

Schroders’ research found that, with the option to choose all appropriate responses, 37% of respondents said they would not delay claiming until age 70 because they wanted the money as soon as they could get it; 36% responded that they were concerned about Social Security being depleted; and 34% said they needed the income as soon as possible.

“The income generated from monthly Social Security payments is critical to making ends meet in retirement for many Americans,” said Deb Boyden, Schroders’ head of U.S. defined contribution, in a statement. “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.”

The potential loss of a key form of retirement income at least partly fueled respondents’ concerns over having enough income to retire. For 54% of employees surveyed, the thought of losing their regular paycheck was simply “concerning,” while 23% chose the description “terrifying.”

To retire comfortably, many respondents anticipated needing more than $5,000 in monthly income. In addition to Social Security, these individuals plan to depend on a range of financial resources: 60% said they will rely on their cash savings; 45% said workplace retirement plans such as 401(k), 403(b) or 457 plans; 34% on investment income; 30% on a spouse’s retirement accounts; and 22% on a spouse’s pension.

However, despite these expectations, research from Schroders revealed a troubling savings gap. Among retirees surveyed, 62% admitted they are unsure how long their savings will last, and 58% expressed a desire for better planning before retiring. Moreover, 74% reported earning less than 75% of their final paycheck in monthly retirement income.

The findings from the Schroders 2025 US Retirement Survey are based on responses from 1,500 U.S. investors, including 602 currently engaged in workplace retirement plans. The responses were collected from March 25 through April 17.