Only 8% of Workers Say They’ll Wait Till 70 for Social Security: Survey
What You Need to Know
- In a Schroders survey, 43% of respondents said they planned to claim benefits before age 67.
- Non-retiree respondents, on average, forecast that they would need $4,947 a month to live comfortably.
- Thirty-eight percent of employer plan participants said their plan provides a retirement income solution.
Half of non-retired Americans said they are concerned or very concerned about outliving their assets in retirement, Schroders reported in a new survey this week.
At the same time, 43% of respondents said they plan to take Social Security before they turn 67, the full retirement age for those born in 1960 or later. Twenty-three percent said they would start their benefits at 65, and 12% said they would do so at 62.
Only 8% said they would wait to claim until age 70, when they will reach their maximum monthly benefit.
The decision to sacrifice Social Security income is not an oversight for most Americans, Schroders noted, as 74% of non-retired investors are aware that waiting longer earns higher payments. Rather, they are doing so for these reasons:
- Will need the money: 39%
- Concerned that Social Security may run out of money or stop making payments: 38%
- Want access to the money as soon as possible: 36%
- Advised to take earlier than age 70: 12%
“There is no one-size-fits-all answer for when to file for Social Security, however, delaying benefits for as long as possible can add several hundred dollars to those monthly checks,” Deb Boyden, head of U.S. defined contribution at Schroders, said in a statement.
“With so many Americans behind on retirement savings, waiting to collect Social Security benefits can have a significant impact on your quality of life during your decumulation years.”
8 Acre Perspective conducted the survey from March 15 to April 5 among 2,000 U.S. investors nationwide ages 28 to 79, including 780 who currently participate in a workplace retirement plan.
Search for Retirement Income
The survey found that 88% of non-retired Americans are at least somewhat concerned about not knowing how best to generate income during retirement.
Asked to forecast how much monthly income they will need to live comfortably after leaving work, non-retiree respondents said $4,947 on average, which is higher than the $4,258 of monthly income that today’s retirees report they are generating, according to Schroders.
Among respondents who participate in a workplace retirement plan, 50% said their primary investment objective is to generate steady income, 41% said it is to grow assets and 9% said to protect assets.
Consistent with these objectives, 94% said they would be interested in a retirement investment product from their employer that actively manages the risk of loss while seeking to grow assets at a rate equal to the current cash rate plus 5%.