Let’s talk about one of the biggest decisions you’ll ever make for your retirement: when to start taking Social Security. For years, we’ve all heard the advice to wait as long as you can, right? To hold out until you’re 70 to get the biggest possible check each month.
It sounds like a no-brainer. But a brand-new survey just dropped, and honestly, the results are pretty eye-opening. According to the Schroders 2025 US Retirement Survey, a whopping 43% of Americans are planning to do the exact opposite. They’re going to file for their benefits before they even hit their full retirement age.
That’s a massive number. It tells us that for millions of people, the "wait for more" strategy just isn't cutting it. So, what’s really going on here? Why are so many people seemingly leaving money on the table? Let's get into it.
The Big Question: Why Take the Money and Run?
It’s easy to look at the numbers and think people are making a mistake. After all, the survey found that 70% of folks know that waiting longer would mean a bigger monthly payment. So, this isn't about a lack of knowledge. This is a deliberate choice.
So, what’s driving this decision? It really boils down to a few very human, very understandable reasons. The survey respondents laid it out pretty clearly:
- "I want my money now." About 37% of people simply want access to their funds as soon as possible. After decades of working and paying into the system, they feel it’s their money and they’re ready to use it.
- Fear of the future. This one’s huge. A nearly equal number, 36%, are genuinely worried that Social Security might run out of money or stop making payments. There’s a real sense of "I better get mine while I still can."
- The immediate need. For 34%, it’s not about fear or desire—it’s about necessity. They’ll need that Social Security income to cover their regular living expenses as soon as they stop working.
Deb Boyden, who heads up US Defined Contribution at Schroders, hit the nail on the head. She said that many people just haven't been able to save enough for retirement. They’re counting on Social Security to fill the gap immediately. When you combine that with the anxiety around the system's future, you can see why waiting feels like a luxury many can't afford.
The Hidden Cost of Claiming Early
Okay, so we get why people are doing it. But we have to talk about the other side of the coin. What’s the real impact of taking your benefits at, say, age 62 instead of 67 or 70?
As Deb Boyden points out, there's no single "right" age for everyone. Your health, your savings, your family situation—it all plays a role. But the financial reality is stark.
Think of it like this: You can have a small, steady stream of water starting right now, or you can wait a few years for a much bigger, more powerful river. That bigger river can make a massive difference over the course of a 20- or 30-year retirement.
Boyden notes that waiting just a few years—from 62 to your full retirement age of 67, for example—can "significantly increase the money you collect over your lifetime." This is especially critical when you realize that about half of all retirees say their expenses in retirement are higher than they expected. Tapping into that Social Security stream early might feel good at first, but it could lead to some serious financial pinches down the road when costs go up and your monthly check stays the same.
The Missing Piece of the Puzzle: Where’s the Income Plan?
This whole situation shines a spotlight on a much bigger problem. Most of us are pretty good at saving for retirement. We put money in our 401(k)s and IRAs. But we’re not so great at figuring out how to turn that pile of savings into a steady, reliable paycheck in retirement.
The survey uncovered a startling gap here. Of all the people participating in a workplace retirement plan:
- Only 39% said their plan actually included a retirement income solution.
- A huge chunk, 34%, had no idea if it did or not.
- And 27% flat-out said their plan offers nothing of the sort.
This is a huge disconnect. We’re asking people to manage their own retirement income, but we’re not always giving them the tools to do it. It’s like telling someone to build a house but only giving them a hammer.
The good news? People are hungry for help. An overwhelming 90% of those with a workplace plan said they’d be interested in a product from their employer that helps generate income while managing risk. They want clarity, confidence, and control.
So, What Do We Do Now?
It’s clear that the old way of thinking isn’t working for everyone. As Deb Boyden says, "We can’t keep doing the same things and expect different results. The time to innovate is now."
For those of us in the industry—advisors, asset managers, plan sponsors—the message is clear. We need to do a better job of helping people bridge that gap from saving to spending. This means better education, for sure, but it also means better products. We need to create straightforward solutions that help people feel secure about their income stream in retirement.
And for you, if you’re thinking about your own retirement, this is a wake-up call. It's a reminder to look beyond just your savings balance. Start asking the tough questions now. How will you turn your 401(k) into a paycheck? What role will Social Security play, and what’s the smartest way to time it for your specific situation?
Making the decision about when to claim Social Security is deeply personal, and it’s not always simple. But understanding the trade-offs, facing the numbers head-on, and building a real income plan can make all the difference in helping you achieve the retirement you’ve worked so hard for.
