Social Security Solvency Concerns Have Many Planning to Tap Benefits Early

Business Wire

According to the Schroders 2026 US Retirement Survey, 52% of non-retired Americans are “concerned” or “very concerned” about outliving their assets in retirement. Despite these concerns, 45% are planning to file for Social Security benefits before reaching age 67 – the full retirement age for everyone born in 1960 or later, and just 10% plan to wait until age 70, when an individual reaches their maximum monthly benefit.

For most, forgoing a larger income stream isn’t an oversight – 69% understand that waiting longer to claim Social Security would increase their monthly payments. Their reasons for planning to claim Social Security before age 70 include:

I will need the money earlier for regular income (45%)
I want access to the money as soon as possible (43%)
I’m concerned Social Security may run out of money or stop making payments (40%)
I was advised to take it earlier than age 70 (14%)

“While there is no single, right age for claiming Social Security, careful planning helps take the emotion out of your decision-making,” said Deb Boyden, Head of US Defined Contribution, Schroders. “Knowing your income, spending needs, and whether your investments match these needs will provide clarity that leads to better decisions on how to maximize Social Security.”

On average, non-retired Americans believe they must generate $5,094 in monthly income to retire comfortably – up slightly from $5,032 just one year ago. Beyond Social Security, they plan to rely on the following sources to generate this monthly income:

Cash savings (55%)
Workplace 401k, 403b or 457 plan (48%)
Investment income (33%)
A spouse’s 401k, 403b or 457 plan (27%)
A pension plan (21%)

Most non-retired Americans are not overly confident in their ability to replace at least 75% of their last paycheck with retirement income, a standard industry benchmark. Just 16% said they “definitely” expect to replace at least 75% of their last paycheck, compared with 15% who said, “definitely not” and 32% who said, “probably not.” This predicament is a pain point, as most non-retired Americans (56%) find the idea of no more regular paychecks “concerning” and 20% describe it as “terrifying.”

Notably, the growth of artificial intelligence (AI) is also a source of stress for many non-retired Americans, as 48% are concerned that AI will force them into retirement sooner than planned.

Plan Participants Want Downside Protection

Among all non-retired Americans with a workplace retirement plan (i.e., 401K, 403b or 457 plan), 74% report that this plan is their single most important retirement asset, and among those with plans offering retirement income products, 85% say they are either “very likely” or “somewhat likely” to keep their assets in the plan after they are done working.

The vast majority of workplace retirement plan participants (91%) report 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%.

Retirement Regrets: Retirees Planned Too Little and Lack an Income Strategy

Nearly two-thirds (64%) of survey respondents who have already retired wish they had done more retirement planning before leaving the workforce, and most have no idea how long their savings will last (58%).

About half (51%) of retirees surveyed don’t have any specific strategies for generating income in retirement. For those that do, the top three strategies include:

Systematic withdrawals from retirement accounts (26%)
Certificates of Deposit (CDs) (20%)
Dividend-producing stocks or mutual funds (20%)

“Our survey findings reveal a blind spot that many don’t discover until it’s too late. Planning for retirement isn’t just about how much you save – it’s about knowing how you’ll turn that savings into a reliable income stream,” said Boyden. “Far too many people retire without a clear strategy for making their money last, and that uncertainty can be just as stressful as not having saved enough in the first place.”

For more information on the Schroders 2026 U.S. Retirement Survey, click here.

About the Survey

The Schroders 2026 US Retirement Survey was conducted by 8 Acre Perspective among 1,500 US investors nationwide ages 30-79. The survey was conducted from March 20 to April 15 in 2026.

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