Almost Half Of Non-Retirees Plan To File For Social Security Before Age 67, And Only 10% Plan To Wait Until Age 70

A Schroders 2025 U.S. Retirement Survey finds widespread financial anxiety is driving many Americans to plan early Social Security claims: 44% of non-retirees expect to file before age 67 while only 10% plan to wait until 70, even though about 70% understand delaying increases monthly benefits; 87% are at least somewhat concerned about generating post‑work income and the survey cites motivations including immediate access (37%), fears about Social Security solvency (36%) and near‑term income needs (34%). Respondents say they will need roughly $5,032 per month in retirement but are split on whether they can replace 75% of pre‑retirement pay, and a majority express significant worry about losing regular paychecks. The findings highlight downside risks to long‑term retirement income sufficiency, reinforce demand for income‑oriented solutions, and suggest that public debate over Social Security solvency is materially affecting beneficiary behavior.

Analysis

A Schroders 2025 U.S. Retirement Survey finds pronounced retirement income anxiety: 87% of non-retirees are at least somewhat concerned about generating income after work, 44% plan to claim Social Security before full retirement age (67), and only 10% expect to wait until age 70 despite roughly 70% acknowledging that delaying increases monthly benefits. The survey lists top motivations for early claiming as immediate access (37%), fear of Social Security insolvency (36%), and near‑term income needs (34%), while 15% reported being advised to claim early.

Respondents estimate needing $5,032 per month in retirement and are split on replacing 75% of pre‑retirement pay; 54% find losing regular paychecks concerning and 23% call it "terrifying," signaling potential shortfalls if many claim early and reduce lifetime benefits. Deb Boyden of Schroders emphasizes that delaying claiming can materially improve retirement finances, implying behavioral choices driven by anxiety may worsen long‑term adequacy.

Overlaying the survey with the provided analytics, sentiment is moderately negative (score -0.45) with a modest market impact score (0.3), suggesting elevated consumer concern that should increase demand for income‑oriented solutions (annuities, guaranteed products) and keep policy debate on Social Security solvency as a near‑term driver of retiree behavior.

Key Decisions for Investors

• Consider modestly increasing exposure to firms that provide guaranteed retirement income solutions and annuity distribution capabilities given likely demand for income products
• Stress‑test client or portfolio cashflows under earlier Social Security claiming scenarios and incorporate higher longevity risk and lower lifetime benefit assumptions
• Monitor Social Security solvency headlines and policy proposals as catalysts for beneficiary behavior changes and for potential volatility in retirement‑focused asset flows
• Maintain liquidity or short‑duration allocations to serve near‑term income needs for clients likely to claim early while avoiding locking up capital at rates that exacerbate long‑term shortfalls