- Key Insight: Learn why Social Security solvency fears are accelerating early benefit claims.
- What’s at Stake: Retirement-plan sponsors face higher withdrawal rates and pressure on income-solution offerings.
- Supporting Data: 44% of non-retirees intend to claim benefits before full retirement age.
- Source: Bullets generated by AI with editorial review
Growing anxiety over the future of Social Security is driving more Americans to claim benefits earlier than planned.
Forty-four percent of non-retirees intend to file for benefits before reaching age 67, according to the Schroders 2025 US Retirement Survey. That’s the full retirement age for people born in 1960 or later.
Just 10% plan to wait until they turn 70, which guarantees higher monthly payments.
“Clearly, reports questioning Social Security’s solvency have workers anxious to tap into their benefits sooner rather than later,” says Deb Boyden, head of U.S. defined contribution at Schroders. “But with many Americans facing a large savings gap, holding off on claiming benefits can have a meaningful impact on your finances in retirement.”
Boyden says the new data speaks volumes about the importance of building a solid nest egg before leaving the workforce.
“All of us who work in the defined contribution plan industry — including plan sponsors, asset managers, and advisers — must continue to innovate to provide solutions that remove the complexity and anxiety out of the retirement income equation.”
Start planning early
According to the survey, non-retired Americans believe they must generate $5,032 in monthly income on average to retire comfortably. In addition to Social Security, 60% say they plan to draw upon cash savings. Other income sources include a workplace 401(k) plan, investment income and employee-sponsored retirement savings from their spouse.
Nearly 40% of Americans participating in a workplace retirement plan say their plan included a retirement income solution. Thirty-four percent don’t know and 27% reported that their plan does not offer any retirement income products.
Read more: This is ‘going to hurt’: Social Security benefits see 2.8% bump for 2026
While there’s no silver bullet for retirement planning, Boyden says one of the best strategies is to start early and have a goal in mind. She suggests contributing to a 401(k) plan because that savings is going to compound over time, particularly when there is an employer match. Target date funds, which offer a strategic way to manage investments as an employee approaches retirement, are also a good option.
Schroders
“I think it’s important for individuals to look to their employers for guidance on saving and planning for retirement,” Boyden says. “Benefits teams can provide education but more importantly tools that can help to model what individuals may need in retirement.”
Never too late to get started
Most non-retired Americans are worried about the idea of no more regular paychecks in retirement. According to the survey, 54% describe it as “concerning” and 23% call it “terrifying.”
Around half of those polled also expressed doubts about being able to replace at least 75% of their last paycheck in retirement, with 35% saying “probably” and another 15% responding “definitely not.”
“Many Americans do not manage their retirement savings as effectively as they could, and as a result, they must make tough choices when beginning to withdraw assets to cover their expenses,” says Boyden.
Read more: Retirees have no financial plan: How benefit managers can help employees now
Among the survey respondents who have already retired, 62% say they don’t know how long their savings will last, and 58% admitted they wish they had done more planning before they left the workforce.
Far too often, when people see a big lump sum in their savings, that gives them a false sense of security that they are prepared for retirement. “But when you break that down and understand what that translates to from a monthly income perspective — and couple that with what your expected expenses are in retirement — then you can truly understand and plan better for retirement,” Boyden says.
Read more: The retirement race: Women have less saved than men
Although it’s ideal to start planning early, even those who put off saving for retirement until they are in their mid-30s and 40s still have time to make up ground, Boyden says.
“The bottom line is it’s never too late to save and never too late to plan,” she says.