Nearly every working American knows the golden rule of Social Security: Wait longer, get more money. But when it comes to actually following that advice? Well, that’s another story.
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Research from Schroders’ 2025 U.S. Retirement Survey showed that 9 out of 10 workers intend to start taking Social Security before they turn 70. That’s despite the fact that holding out until 70 means substantially bigger checks every month.
The Price of Claiming Early
While full retirement age is 66 or 67, depending on when you were born, at 62, you become eligible for Social Security benefits. The catch? Your monthly payment takes a permanent hit, typically dropping about 30% below what you’d get by waiting until the full retirement age of 67. Push your claim all the way to 70, and you’re looking at payments roughly 24% higher than the full retirement age amount.
For early claimers, that adds up to a potential lifetime loss exceeding $180,000.
Despite these numbers, early claiming remains the plan for most people. Just 10% of surveyed workers said they’d hold out until 70, while 44% expect to file before hitting full retirement age. The reason? Most people said they simply can’t afford to wait, even though they understand what they’re giving up.
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Why People Claim Early
Many Americans need Social Security the moment they stop working. Rising costs of living, sparse retirement savings and health problems often force older workers to claim benefits right away.
Some people also worry about Social Security’s future. Nearly half of respondents fear the program might run out of money, which pushes them to grab benefits earlier “just in case.”
The Break-Even Math
At 62, you’d pull in about $1,400 a month (using today’s $2,000 average as a baseline) and rack up eight additional years of payments before a 70-year-old even starts.
Hold out until 70, and your monthly check jumps to about $2,480. But it takes roughly 10 years of those bigger payments to make up for all the checks you missed. The break-even point hits around age 80.
For retirees dealing with health issues, that math often tips the scale toward claiming early.
What’s Actually at Stake for Social Security
By 2033, Social Security’s trust funds will likely be depleted, potentially triggering a 23% benefit reduction if Washington fails to intervene. The program won’t collapse entirely, though — payments would continue at a lower rate.
Policy changes like lifting the income threshold for Social Security taxes (which currently caps at $176,100) could shore up the system’s finances.
The Bigger Financial Picture
Americans who haven’t retired yet estimate they’ll require around $5,000 each month for a comfortable retirement. The disconnect between expectations and reality highlights just how precarious retirement security has become for many households.
This financial squeeze, layered with doubts about whether Social Security will survive intact, drives most people toward early claiming, even when letting those benefits grow would clearly pay off in the long run.
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This article originally appeared on GOBankingRates.com: 90% of Americans Plan To Skip This Social Security Advice — and It Could Cost Them
