From CBS News: Nine in 10 working Americans say they plan to ignore one of the most common pieces of financial advice about Social Security: waiting until age 70 to claim benefits, which ensures higher monthly payments, according to a new study from investment firm Schroders.
Social Security allows employees to claim their benefits as soon as they turn 62, years before the so-called “full retirement age,” which now stands at 67. But claiming Social Security early has a tradeoff—it lowers your monthly payment by about 30%, with those lower benefits locked in for the rest of your life.
By contrast, delaying Social Security until age 70 results in a roughly 30% higher monthly payment than if you claimed benefits at age 67 — also locked in as long you’re collecting benefits. As a result, financial experts often recommend that seniors hold off as long as they can, with one study finding that filing early for benefits can cost $182,000 in foregone payments.
The Schroders survey suggests that many Americans who haven’t yet retired aren’t buying that advice. In the survey of 1,500 adults, most respondents said they understand the trade-offs of claiming early, but only 10% plan to wait until age 70, while 44% expect to file for benefits before they reach full retirement age.
The report quotes Deb Boyden, head of U.S. defined contribution at Schroders, as saying, “The decision to sacrifice extra Social Security income is not an oversight for most Americans. According to our research, 70% of Americans are aware that waiting longer to claim Social Security leads to higher payments, and yet so few are willing to hold off.”
The report notes that many Americans are living “paycheck to paycheck” and have very little, if any, retirement savings.
Another new study, released Tuesday by the Allianz Center for the Future of Retirement, reveals that many Americans don’t understand how Social Security works, and about 1 in 5 believe Social Security will provide all the retirement income they need, even though it typically amounts to only 40% of a worker’s wages.
READ MORE from CBS News.
90% of Americans plan to skip the No. 1 piece of Social Security advice, study finds. https://t.co/OtYeaU7gCN
— CBS News (@CBSNews) October 21, 2025
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