Americans Claim Social Security Early Despite Financial Risks

Retirement planners have long advised Americans to delay claiming Social Security until age 70 to maximize monthly benefits. However, most Americans appear to have different intentions, prioritizing immediate financial needs over long-term gains.

A recent survey from Schroders, the global asset management company, reveals that 45% of not-yet-retired Americans plan to file for Social Security before age 67, which the federal agency considers full retirement age. Furthermore, only 10% of non-retired Americans intend to wait until age 70, when they can collect the maximum monthly benefit.

The Financial Trade-Off of Early Claims

The longer Americans wait to claim Social Security, the larger their monthly checks become. This financial incentive continues growing until reaching age 70. Consequently, economists note that a retiree of average longevity will reap the most money from Social Security by waiting until that milestone.

Delaying benefits from full retirement age until age 70 earns delayed retirement credits-approximately an 8% increase each year. In contrast, more than a quarter of Social Security beneficiaries begin claiming benefits at age 62, as soon as they’re eligible, even though their monthly benefit may be slashed by as much as 30%.

Despite these significant reductions, the most popular age for claiming Social Security remains 62, the first year it becomes available to most retirees, according to the Center for Retirement Research at Boston College.

Why Americans Choose Early Benefits

The Schroders survey identified three primary reasons why Americans claim Social Security before age 70. These findings reveal the practical concerns driving retirement decisions:

• “I will need the money earlier for regular income,” cited by 45% of non-retirees
• “I want access to the money as soon as possible,” cited by 43%
• “I’m concerned Social Security may run out of money or stop making payments,” cited by 40%

“Individuals are making those decisions based on current cashflow needs in retirement and uncertainty, rather than maximizing their lifetime benefits,” said Deb Boyden, head of U.S. defined contribution at Schroders.

Currently, Social Security pays an average of about $25,000 a year in retirement benefits-scarcely enough to get by comfortably for most Americans. This modest sum highlights why many retirees feel financially stretched and unable to delay claiming their benefits.

Economic Pressures Driving Early Claims

Two significant factors are weighing on workers who plan to take Social Security early, according to Boyden. First, inflation has dramatically affected purchasing power. Prices have risen by roughly 30% since the start of the decade, federal data shows. This sharp increase has made waiting for larger future benefits feel like an unaffordable luxury for many Americans.

Second, unease about the future of Social Security looms large in workers’ minds. The federal program faces a funding shortfall by 2032. If Congress fails to act, retirees could see benefits cut. Fear about Social Security’s future is already driving behavior, as Americans rush to claim benefits now rather than risk receiving reduced payments later.

“It suggests that financial necessity and financial confidence may matter more than knowledge alone,” Boyden said.

A Pattern of Consistent Behavior

The trend toward early claiming has remained remarkably stable over recent years. In 2024, 43% of nonretired Americans said they planned to begin claiming Social Security before age 67. That figure increased to 44% in 2025, Boyden noted.

Moreover, more than half of working Americans worry about outliving their money in retirement. Paradoxically, many of those same people plan to begin collecting Social Security benefits early-effectively leaving money on the table. This apparent contradiction suggests that immediate financial realities outweigh concerns about future income adequacy.

“There is no single right age for claiming Social Security,” said Deb Boyden, head of US defined contribution at Schroders. “What stands out, though, is how remarkably consistent this behavior has been.”

New Legislation Could Reshape Blue-Collar Retirement

As debates about Social Security timing continue, Congress is considering new approaches for specific worker groups. Representative Haley Stevens, a Michigan Democrat, recently introduced the Blue Collar Social Security Fairness Act. This proposal would create an exception to existing Social Security rules for workers in physically demanding occupations.

Under the proposed legislation, some Americans working in physically demanding jobs could claim full Social Security retirement benefits at age 60. The bill would allow workers who have spent enough of their careers in qualifying occupations to receive unreduced retirement benefits seven years before the current full retirement age.

“Michiganders who work with their hands shouldn’t be forced to wait until their bodies give out to retire,” Stevens said in a statement to CNBC. “If we want to honor the dignity of work in this country, we need to lower the retirement age for physical laborers.”

Understanding the Practical Reality

Retirement experts express concern about the rush to claim Social Security early because retirees who take the benefit prematurely receive markedly smaller monthly checks throughout their retirement. However, Americans appear willing to forgo that extra monthly income despite their anxiety about running short in retirement.

Their reasons remain practical and rooted in current circumstances. Many Americans are making personal decisions “based on current financial realities” rather than thinking about maximizing their Social Security checks in the future, Boyden explained. This approach reflects a broader shift in retirement planning, where income needs come first and long-term optimization takes a back seat to immediate survival.

The disconnect between financial advice and actual behavior reveals a fundamental challenge facing American retirees: theoretical optimization strategies often clash with practical economic necessity. As inflation continues affecting household budgets and concerns about Social Security’s solvency persist, the trend toward early claiming seems likely to continue regardless of expert recommendations.