What You Need to Know
- Schroders surveyed pre- and post-retirees 45 and older and found that only 10% planned to wait until 70 to claim benefits.
- Three in four respondents said they were concerned about how to find additional income or draw down assets in retirement.
- Advisors should educate themselves and their clients on Social Security benefits in addition to individual portfolios.
Getting the largest possible Social Security check doesn’t appear to be incentive enough for 90% of non-retirees 45 and older to wait until age 70 to claim them, according to a new study from Schroders Investment Management. Indeed, 30% plan to begin taking benefits between age 62 and 65, before full retirement age. Fourteen percent plan on taking benefits between 66 and 69, while nearly half 46% aren’t sure when they will claim.
Even those who are at or near retirement age — ages 60 to 67 — don’t seem interested in waiting until age 70: Only 13% said they plan to wait to age 70 to claim Social Security benefits while 28% are still unsure.
Only 5% say they waited until age 70 to claim the benefits.
“Social Security is the primary source of income for the majority of Americans we surveyed, which is why we were surprised to see so many deciding not to wait until 70 for larger monthly payments; or worse, sacrificing their full benefits by tapping them early,” said Schroders’ Joel Schiffman, head of intermediary distribution, North America, in a statement. “It might come down to being able to afford to wait.”