Retirement IncomeLearn more about Americans’ views on Social Security, monthly income needs in retirement and specific strategies for turning savings into income after retiring.
Just 10% of non-retired Americans will wait until 70 to take maximum Social Security benefits
Key findings on retirement income from the 2023 Schroders US Retirement Survey include:
- While the majority of non-retired Americans (72%) are aware they could receive higher Social Security payments by delaying the start of their benefits, just 10% plan to wait to age 70 – the age at which an individual reaches their maximum monthly benefit – to begin taking their Social Security benefits.
- A sizeable number (44%) said they would take benefits before 70 because they were concerned Social Security may run out of money/stop making payments, and 36% said they will need the money sooner.
- When asked to forecast how much monthly income they will need to enjoy a comfortable retirement, non-retired survey participants said $4,940, on average. This includes non-retired millennials, who said $5,135 per month; and those who are nearing retirement (ages 60-65), who said $4,855 per month.
- Having an advisor and a plan pays off: the average monthly income including Social Security for retirees with a financial advisor is $5,075. For retirees with a formal financial plan, their monthly income is $5,810 on average, which is almost twice the $3,000 per month of income reported by those without a financial plan.
- The idea of no more regular paychecks in retirement is not only concerning to 57% of non-retired Americans, but terrifying for another 23%.
- Almost half (49%) of all retirees don’t use any retirement income strategies, they just take money when they need it.
- Among working Americans participating in a workplace retirement plan, 32% said their plan provided a retirement income solution; 39% said they didn’t know; and 29% said no. The vast majority (82%) of those who are offered an income solution in their plan are likely to use it.
“We have a crisis of confidence in the Social Security system and it’s costing American workers real money. Fear about the stability of Social Security has people walking away from money that could improve their quality of life in retirement. Many are not even waiting for their full benefit let alone the maximum, which means they will have to create more income on their own, making it even more important to save and invest earlier for retirement.”
Head of US Defined Contribution