Many people assume that savvy retirement planning means claiming Social Security
at the optimal time, yet most don’t follow that rule. According to recent
research, the vast majority of workers plan to claim benefits early rather than
wait for the maximum payout. Understanding the trade-offs in timing your
benefits is critical to building a strong retirement
plan.
Below, we unpack how many Americans skip this advice, what delaying benefits can
mean, what it costs, and how to decide the right moment to claim.
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Nine in 10 Americans are ignoring this piece of Social Security advice
The Schroders 2026 US Retirement Survey found that 92% of working Americans say they don’t plan to wait until age 70 to claim benefits, despite advice to wait
for larger monthly checks.
The truth: claiming as early as age 62 locks you into a lower monthly benefit
permanently, which is about 30% less than if you wait until full retirement age (or FRA,
which is currently 67) and up to roughly 24% more if you wait until 70. Timing
your claim can add tens of thousands of dollars (or more) in lifetime benefits,
yet so many choose to skip that opportunity.
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70% of Americans know waiting longer increases benefits
At the same time, another Schroders survey found that about 70% of Americans are aware that delaying benefits leads
to higher payments, yet most plan to claim early anyway.
This mismatch between knowledge and action points to other factors driving early
claims: financial pressure, a need for immediate supplemental income after
stopping work, health issues, or fear about Social Security’s future. Knowing
the rule doesn’t guarantee you’ll follow it. You must align your strategy with
your situation.
The pros of delaying your Social Security benefits
Delaying your benefits can be one of the most effective ways to boost your
guaranteed lifetime income. While it requires patience and financial
flexibility, the potential upside can be significant, particularly for those
with longer life expectancies or strong savings buffers.
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Larger monthly payments
Every year you wait past FRA (currently age 67) to claim up to age 70 increases
your benefit by about 8% annually, or about 24% total. That boost compounds into
a higher guaranteed income for life and can serve as an inflation-protected
income if you live a long retirement.
Improved survivor benefits
If one partner delays benefits and survives the other, the higher benefit
continues to the surviving spouse, offering long-term financial security for two
individuals. This coordination can significantly increase household lifetime
income.
Social Security as a stable foundation
By maximizing your benefit, Social Security can become a stronger pillar in your
retirement income mix, reducing the draw on your savings and potentially
letting your portfolio last longer. There’s less risk of stretching your savings
when you have a guaranteed higher monthly income for the rest of your life.
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The cons of delaying your Social Security benefits
Despite its advantages, waiting to claim isn’t the right move for everyone.
Delaying benefits can strain cash flow, require other sources of income, and
introduce uncertainty if your health or life expectancy is a concern.
Need for income today
Waiting to claim often requires alternative income sources, like savings,
401(k) withdrawals, or part-time work, before you start benefits. If you lack
that buffer, early claiming may feel necessary, even if it costs more in the
long run.
Health or lifespan concerns
If you have serious health issues or a shorter life expectancy, waiting may not
pay off. Some may prefer access to benefits earlier rather than waiting for
higher payments they may not fully collect.
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Concern about Social Security’s future
Worries about the program’s solvency may influence many to claim early, fearing
benefits might be reduced or changed later. However, this uncertainty may drive
a decision that appears safe now but may permanently reduce lifetime income.
Factors to consider when deciding when to claim benefits
Timing your benefits requires examining multiple dimensions: your health, life
expectancy, retirement savings, desired lifestyle, and other income sources.
Also consider whether you’ll continue working or need benefits for expenses
right away. Use calculators or speak with an advisor to model different claiming
ages and their impact on your lifetime income.
Social Security faces an uncertain future
The Social Security Administration estimates that, without reform, the retirement trust fund could be depleted in late 2032, at which point only about 78% of scheduled benefits would be payable — a reduction of roughly 22% unless changes are made.
While this doesn’t mean benefits will vanish entirely, it highlights why many may choose to claim early out of fear. Planning around Social Security’s future
can help you make a decision grounded in facts, not anxiety.
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Bottom line
Choosing when to claim Social Security is one of the most impactful decisions in
your retirement plan, yet more than 90% of Americans say they won’t wait for the
optimal moment. By weighing health, savings, other income, and longevity, you
can choose a timing strategy that maximizes your benefit while aligning with
your needs.
Deciding to claim later can help you unlock higher monthly income,
provide better protection for your spouse, and position your savings for a more
secure, stress-free
retirement.
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