Why Most People Have No Intention of Following This Social Security Advice

The retirement advice most often doled out to adults is to wait until age 70 to collect Social Security benefits -- and it makes sense. After all, if you claim benefits the first year you're eligible (age 62), your permanent monthly benefit will be about 30% less than if you waited until your full retirement age (FRA) of 66 to 67. And if you wait until age 70, your monthly benefit will be about 24% higher than at FRA.

Here's how that would look if your FRA benefit is scheduled to be $2,000 monthly:

• At age 62: $1,400
• At FRA (66-67): $2,000
• At age 70: $2,480-$2,640 (depending on whether your FRA is 66 or 67)

Despite seeing the math in black and white, the recently released Schroders 2025 U.S. Retirement Survey revealed that only 8% of those asked planned to wait until age 70 to claim benefits. Here are some of the reasons why:

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Job loss

Among those who once considered waiting until age 70 to claim Social Security, it's fair to imagine that some have run into circumstances outside their control. Something dramatic, like a job loss, is enough to make anyone rethink their strategy.

2025 has been a tremendously challenging year. By the beginning of October, 950,000 Americans had already lost their jobs, and layoffs are expected to surpass 1 million by the end of December.

Amazon, Target, Meta, Starbucks, and General Motors (GM) are just five of the major employers that have recently announced job cuts. These moves have contributed to the largest number of layoffs in the U.S. since the beginning of the pandemic in 2020.

Whether someone has been laid off from one factory job after another or they've been with the same company for 45 years and suddenly find themselves without a job, the news is jarring. They're certainly not a CEO receiving a $20 million payout to leave. They're everyday people who need to decide their next best move.

And sometimes, that move is to stop trying so hard to find a company they can depend on. It's easy to understand how they might say, "Forget it. I'll claim Social Security early and draw from the money in my 401(k) now, whether it fits my plans or not."

Health concerns

No matter how long a person plans to hold off on claiming Social Security benefits, it can be tough to stick with the plan if health issues make it difficult to work.

According to the Federal Reserve, 30% of retirees say that a health problem was a factor in their retirement decision, while 17% said they retired to care for family members. Financial services group TIAA found that "health shocks" cause Americans to push their retirement plans up more than any other reason.

For example, TIAA found that a new diagnosis of cancer reduces the chances of working past age 62 by 16.4%. The chances of working past 62 after a lung disease diagnosis are reduced by 26.4%, and arthritis reduces a person's chances of staying on the job by 10.2%.

For workers with serious health issues, collecting Social Security benefits earlier than expected may not be their first choice. Still, it could be the most sensible thing to do at the moment.

Loss of faith

An AARP poll suggests that the surge of Americans filing for Social Security benefits early is largely driven by anxiety about recent Social Security Administration (SSA) changes and concerns about the program's future.

Between January and July of this year, more than 2.3 million people filed for Social Security retirement benefits. That's up 16% from the same period last year. For those who claimed earlier than planned, 49% percent said they were motivated by reports that the program is running out of money.

The truth is that the program can't run out of money because it continues to be funded by the steady stream of workers paying Social Security payroll taxes. While the program's trust fund is projected to run short of surplus cash by 2034, Congress may find a solution, as they have done in the past. And even if the trust fund does run dry, Social Security would continue to pay benefits, although at a reduced rate.

Still, that doesn't prevent people from worrying. After paying into the system for decades, they want to be sure they'll get as much out of it as possible.

These are tricky times, made more so by the rapid-fire changes in the government. During times of stress and uncertainty, it's natural for people to reach for something familiar and comfortable -- like their Social Security benefits.

Although waiting until age 70 is the best way to maximize benefits, it makes sense that 70 doesn't work for everyone. That appears to answer why only 8% say they plan to wait.

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