According to the Schroders 2026 U.S. Retirement Survey, 52% of non-retired Americans express concern about outliving their retirement savings.
Despite these worries, 45% intend to claim Social Security benefits before reaching the full retirement age of 67, which applies to those born in 1960 or later, while only 10% plan to wait until age 70 to maximize their monthly benefits.
Approximately 69% of respondents recognize that delaying benefits could lead to higher monthly payments.
The motivations for claiming benefits before age 70 include the need for early income (45%), a desire for immediate access (43%), fears that Social Security may become depleted (40%), and advice to take benefits earlier (14%).
“There isn’t a universally correct age for claiming Social Security, but strategic planning can alleviate emotional factors in your decision-making,” said Deb Boyden, head of U.S. defined contribution at Schroders. “Understanding your income requirements and ensuring your investments align with these needs will provide the clarity necessary for optimizing Social Security benefits.”
On average, non-retired Americans believe they need to generate $5,094 in monthly income for a comfortable retirement, a slight increase from $5,032 last year. In addition to Social Security, they plan to depend on cash savings (55%), employer-sponsored plans such as 401k, 403b, or 457 (48%), investment income (33%), a spouse’s retirement plan (27%), and pensions (21%).
Only 16% feel certain they will replace at least 75% of their final paycheck with retirement income, compared to 15% who are certain they will not, and 32% who are likely to fall short.
More than half of non-retired Americans (56%) find the prospect of no longer receiving regular paychecks concerning, and 20% find it “terrifying.” Additionally, 48% are worried that advancements in AI may push them into early retirement.
Desire for Downside Protection Among Plan Participants
Among non-retired individuals with a workplace retirement plan, 74% identify it as their most critical retirement asset.
Of those with access to retirement income products, 85% express they are either “very likely” or “somewhat likely” to retain their assets in the plan after they retire.
Ninety-one percent are interested in an employer-sponsored retirement investment product that effectively manages loss risks while aiming for growth that matches the current cash rate plus 5%.
Regrets in Retirement Planning Among Retirees
Sixty-four percent of retired individuals wish they had engaged in more thorough retirement planning prior to leaving the workforce, while 58% are uncertain about how long their savings will last.
More than half (51%) of retirees lack specific strategies for generating retirement income.
For those who do have strategies, the most common methods include systematic withdrawals from retirement accounts (26%), certificates of deposit (20%), and dividend-yielding stocks or mutual funds (20%).
“Our survey results highlight a critical oversight that many only recognize too late. Preparing for retirement involves not only the amount saved, but also understanding how to convert that savings into a consistent income stream,” stated Boyden. “Many retirees enter this phase without a clear plan for sustaining their funds, and this uncertainty can create just as much stress as insufficient savings in the first place.”
This article was generated using HousingWire Automation and reviewed by a HousingWire editor prior to publication.
