Retirement Income
Learn more about Americans’ concerns over Social Security’s future, their monthly income needs in retirement, and the strategies they are considering to turn their savings into sustainable income during their golden years.Savings shortfall and fear over Social Security’s future have Americans leaving money on the table
Schroders recently surveyed 2,000 US investors to gain insights into their concerns about Social Security and retirement readiness. The survey reveals significant concerns over outliving assets, generating retirement income, and the long-term viability of Social Security, with many Americans planning to claim benefits earlier than recommended.
- One in three non-retired Americans fear Social Security will run out before they can claim benefits.
Despite 51% of non-retired Americans being concerned about outliving their assets, 43% plan to take Social Security benefits before the full retirement age of 67, and 92% don’t plan to wait until age 70 to maximize their benefits.
On average, non-retired Americans believe they will need $4,947 in monthly income to live comfortably in retirement, which is higher than the $4,258 that current retirees report generating.
88% of non-retired Americans are at least slightly concerned about how to best generate income during retirement.
Among working Americans participating in a workplace retirement plan, 50% said their primary investment objective was to generate steady income; 41% said it was to grow assets; and 9% said to protect assets.
Additional findings:
- 38% of plan participants have access to a retirement income solution, up from 31% in 2023. 90% of those with access are likely to use it, though 36% are unsure if their plan offers one.
57% of non-retired Americans are concerned about losing their paycheck in retirement, with 22% finding it "terrifying." Only 10% believe they can “definitely” replace 75% of their last paycheck in retirement.
In addition to Social Security, non-retired Americans expect their primary sources of income during retirement will be cash savings (60%), workplace retirement plans (48%), spouse’s workplace retirement plans (37%), investment income (36%), and spouse’s pension plans (27%).
74% know that delaying Social Security increases benefits, but many still plan to claim early due to needing the money (39%), concerns over social security running out of money or no longer making payments (38%), wanting access to the money as soon as possible (36%), and being advised to take it earlier (12%).
“There is no one-size-fits-all answer for when to file for Social Security, however, delaying benefits for as long as possible can add several hundred dollars to those monthly checks. With so many Americans behind on retirement savings, waiting to collect Social Security benefits can have a significant impact on your quality of life during your decumulation years.”
Head of US Defined Contribution
Press Release
Savings Shortfall and Fear Over Social Security’s Future Have Americans Leaving Money on the Table
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Deb Boyden, Head of US Defined Contribution