I was reading with interest the Schroders’ 2025 US Retirement Survey (https://bit.ly/grWhenToTake) on when to take Social Security benefits. 44% of non‐retired Americans plan to file for Social Security benefits before reaching full retirement age ((FRA), age 67 for those born 1960 or later). Only about 10% plan to wait until age 70 to maximize the benefit.
While 87% of non‐retirees are at least slightly concerned about generating sufficient income in retirement, 53% are “concerned” or “very concerned” about outliving their assets. Among the reasons the latter cited for wanting to take Social Security early were a) Wanting access to the money sooner, b) Concern that Social Security may not be around, c) Needing the money earlier for income, and d) Being advised to take it earlier.
On retirement income sources, the 1,000 non‐retirees interviewed believed they’d need on average $5,032/month to retire comfortably. My two cents is it depends on where a person lives, how long they will live, how much the cost of basic living will increase, and more importantly, what is the definition of retire comfortably.
The predicted breakdown of income in retirement is heavily weighted towards cash savings and the individual’s workplace retirement plan balance. Of lesser regard is investment income and a spouse workplace retirement plan. Far at the back of the pack are pensions which makes sense given the steady decline of pensions. Thes breakdown shows the need to save both a financial institution like a bank and in the workplace retirement plan.
What was interesting is that amongst retired respondents, 62% admitted they don’t know how long their savings will last, 58% wished they’d planned more.
A related survey by Allianz Life found that 55% of Americans admit they don’t know much about Social Security or how it fits into their retirement strategy; 54% are unsure about when to claim.
My Opinion (as a 401(k) advisor)
I believe this article highlights a significant disconnect between ideal retirement outcomes and actual behavior. For plan participants, they face a choice: claim Social Security early for immediate income vs. delay for greater monthly payouts. The data shows many lean toward early claiming due to anxiety (about longevity of benefits, asset depletion) rather than deliberate strategy.
In my view:
- Delaying Social Security can be powerful: Waiting until age 70 can yield materially higher lifetime benefits (depending on health, longevity, other income). For many, that “extra” can serve as a form of guaranteed inflation-adjusted income.
- But it’s not always optimal: If a participant has health concerns, limited life expectancy, or pressing income needs, early claiming may make sense. The key is making the decision based on personalized circumstances, not just anxiety or misinformation.
- 401(k) and other retirement assets must integrate: The article’s finding that many plan participants lack an “income solution” and feel underprepared underscores the importance of bringing together Social Security, 401(k)/403(b) assets, pensions, savings, etc., into a cohesive retirement income plan.
- Education and advisor interaction are critical: The misconception that full retirement age is 65 (when it’s 66–67 depending on birth year) and the fact that more than half don’t know how best to claim Social Security indicates an educational gap. As 401(k) advisors, we must proactively guide participants through decision frameworks for Social Security as part of a broader retirement strategy.
Education opportunities
- Incorporate Social Security timing discussions into retirement planning sessions. Use calculators or scenario analyses that show the impact of claiming at 62 vs. FRA vs. age 70, and how that interplays with the client’s 401(k) distribution strategy.
- Highlight the importance of guaranteed income: Show how delayed Social Security works as a baseline income stream, which allows clients’ 401(k) assets to be invested with different risk-return profiles (less need to be ultra-conservative if there’s a solid guaranteed income layer).
- Offer “income solution” options within the 401(k) or post-plan rollover: Only 39% of participants report having retirement-income products. These products can include managed-income solutions and decumulation strategies and should integrate with Social Security.
- Address behavioral drivers: There seems to be a real fear of Social Security being insolvent. That combined with immediate cash needs, or lack of advice are driving early claiming. It would be helpful to proactively discuss these fears, provide realistic solvency outlooks, stress-test scenarios, and shift from emotion-based decisions to strategy-based decisions.
- Educate early and often: Many participants are unaware of basics—FRA, benefit reductions and credits, interplay with other assets. The more clients understand the mechanics and trade-offs, the more likely they will make informed choices rather than reactive ones.
The Parting Glass
The Schroder’s study reveals that while participants understand that waiting longer increases monthly benefits, the majority still plan to claim early — largely driven by fear and immediate needs, not strategic planning. It could be useful to integrate Social Security timing into the broader retirement income conversation, offering tailored income solutions, and educating participants to make more deliberate, optimal choices.