According to the “2025 US Retirement Survey” released by asset management company Schroders on October 21, 90% of Americans stated that they would not wait until they are 70 years old to receive the maximum amount of Social Security benefits.
Schroders pointed out that 44% of respondents who have not yet retired plan to start collecting before the age of 67, with only 10% planning to wait until age 70 (which is the age at which they can receive the highest monthly benefit) to retire.
Under current regulations, workers can start receiving Social Security benefits at the age of 62, but taking early benefits can result in a reduction of up to 30% in monthly payments. Waiting until age 70 to collect can entitle individuals to a deferred retirement credit for delaying retirement.
According to the Social Security Administration (SSA), for those born in 1960 or later, the “full retirement age” is 67, at which point they can receive 100% of the calculated monthly benefits. The SSA website states: “If you wait until 70 to start collecting retirement benefits, you will receive 124% of the monthly benefits because you delayed by 36 months.”
Among the 1,500 respondents surveyed by Schroders, the majority indicated that they understand the advantages and disadvantages of early retirement.
Deb Boyden, Head of Schroders’ US Retirement Business, stated: “For many Americans, the monthly income from Social Security is crucial for sustaining retirement life. Clearly, reports on the solvency of Social Security have made workers anxious, leading them to prefer early withdrawal; however, for those with insufficient savings, delaying benefits can significantly improve their financial situation after retirement.”
Regarding reasons for not waiting until age 70 to collect Social Security benefits, 37% of respondents expressed a desire to access benefits sooner; 36% were concerned about the depletion or cessation of trust fund payments; 34% indicated a need for earlier stable income; and an additional 15% followed financial advice to collect benefits early.
Earlier this year, reports from the trustees responsible for managing the Social Security and Medicare trust funds indicated that the exhaustion dates for both programs have been accelerated compared to previous forecasts. The Social Security fund is projected to be depleted by 2034, one year earlier than last year’s forecast of 2035; the Medicare trust fund is expected to run out by 2033, three years earlier than previously predicted.
Rumors have surfaced recently suggesting that during the government shutdown that began on October 1, Social Security payments may not be disbursed. However, an SSA spokesperson assured the media that payments will be made as scheduled.
Furthermore, a survey released by Allianz Life Insurance Company of North America on Tuesday revealed that a majority of Americans have limited understanding of Social Security benefits and whether the program can support their retirement life.
The survey indicated that 55% of Americans “admit to knowing little about Social Security benefits or its role in their retirement planning.” Only 39% of respondents stated that they know how to utilize Social Security benefits in retirement.
Among the respondents, 67% expressed concerns that Social Security benefits may not be sustainable throughout their entire retirement, a 10% increase from last year’s survey results.