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More than half of working Americans worry they will outlive their money in retirement. Yet many still plan to collect Social Security early, accepting smaller monthly checks despite the financial anxiety hanging over their later years.

Delaying benefits from full retirement age until age 70 can materially increase retirement income. For most people, full retirement age is 67, and waiting beyond that point earns delayed retirement credits of about 8% each year until age 70.

Even so, more than a quarter of Social Security beneficiaries begin collecting at age 62, the earliest age available. Claiming that soon can reduce a recipient’s monthly benefit by as much as 30%.

“There is no single right age for claiming Social Security,” said Deb Boyden, head of US defined contribution at Schroders, which recently published its retirement survey for 2026. “What stands out, though, is how remarkably consistent this behavior has been.”

In 2024, 43% of Americans who had not retired said they intended to claim Social Security before reaching age 67. That figure rose to 44% in 2025, according to Boyden.

The decision carries substantial financial consequences because Social Security currently pays average retirement benefits of about $25,000 a year. That amount is scarcely enough for a comfortable retirement, making the timing of a claim especially important.

The size of each Social Security payment depends on several personal factors. Those include work history, lifetime earnings, retirement age, and the year in which a person begins collecting benefits.

Most Americans either do not wait or cannot afford to delay benefits until age 70. Those who can postpone their claims, however, ultimately receive more money in their monthly checks.

The Schroders findings indicate that people understand this basic calculation. Their early claims do not necessarily reflect ignorance about the higher income available through delayed retirement credits.

Financial necessity appears to carry more weight than the promise of a larger future benefit. “It suggests that financial necessity and financial confidence may matter more than knowledge alone,” Boyden said.

Americans may be willing to give up additional monthly income even while worrying about running short during retirement. Boyden said their reasons are practical and tied to immediate circumstances rather than simply a failure to understand the rules.

Some expect to need Social Security sooner to cover living expenses, while others want access to the money as quickly as possible. Some also fear that Social Security could run out of money or stop making payments.

Boyden said these choices suggest that many people are acting “based on current financial realities” rather than focusing on the largest possible future check. Jacob Cornell, a financial adviser based in Sarasota, Fla., said the primary reason people claim before age 70 is their need for income.

Financial pressure is not the only valid reason to start benefits earlier. Health and family longevity can also shape whether delaying Social Security makes sense for an individual.

“If you're the oldest living family member, have a heart condition, and other family members died young, walk to the Social Security office right now,” said David Johnston, a certified financial planner based in Flemington, N.J. “But if you are in good health and your parents lived to 80 or 90, don't rush,” he said.

Cade Bekanich, founder of Park Lane Financial Group in West Pittston, Pa., asks clients how they would finance retirement if they postponed Social Security. He also asks whether their other income streams are consistent and secure enough to cover the period before they begin collecting.

Health conditions are another part of that review, as is the effect of accepting a permanently lower benefit. “Importantly, if you receive a lower benefit by claiming today, will this impact your ability to afford your lifestyle down the road?” Bekanich said.

The tradeoff is therefore deeply personal, but the financial gap can be significant. Americans must weigh immediate income needs, health, longevity, and the security of other income sources against the larger monthly benefit available by waiting until age 70.

DISCLAIMER: GoldInvestors.news is not a registered investment, legal or tax advisor or broker/dealer. All investment/financial opinions expressed by GoldInvestors.news are from the personal research and experience of the owner of the site and are intended as educational material. Although best efforts are made to ensure that all information is accurate and up to date, occasionally unintended errors and misprints may occur.