Here's a puzzle: most Americans know that waiting to claim Social Security means bigger monthly checks. They understand the math. And yet, nearly half plan to file early anyway. What gives?

Financial anxiety, mostly. A new survey from Schroders reveals just how much worry about retirement income is shaping when people decide to start collecting benefits — and spoiler alert, that worry is winning out over long-term financial optimization.

Fear Is Driving the Filing Timeline

The Schroders 2025 U.S. Retirement Survey found that 87% of non-retired Americans feel at least somewhat concerned about how they'll generate income once the paychecks stop. More than half worry about outliving their savings entirely. Those aren't small anxieties, and they're clearly influencing Social Security decisions.

The numbers tell the story: 44% of non-retirees plan to claim benefits before age 67, which is the full retirement age for anyone born in 1960 or later. Only 10% expect to hold out until age 70, when benefits max out.

And this isn't happening because people don't know better. About 70% of survey respondents understand perfectly well that delaying benefits means higher monthly payments. They get it. But understanding the system and feeling confident enough to wait are two different things.

So why are so many planning to file early? The motivations break down like this:

• 37% want access to the money immediately
• 36% fear Social Security could run out of funds
• 34% need the income sooner to cover expenses
• 15% were advised to claim early

"The income generated from monthly Social Security payments is critical to making ends meet in retirement for many Americans," said Deb Boyden, head of US defined contribution at Schroders. "Clearly, reports questioning Social Security's solvency have workers anxious to tap into their benefits sooner rather than later, but with many Americans facing a large savings gap, holding off on claiming benefits can have a meaningful impact on your finances in retirement."

The $5,000-a-Month Retirement Dream

On average, non-retirees think they'll need about $5,032 per month to retire comfortably. They're planning to cobble that together from cash savings, workplace retirement plans, investment income, and spousal benefits.

But confidence is shaky. Non-retirees are split right down the middle on whether they'll actually be able to replace at least 75% of their final paycheck in retirement. That uncertainty helps explain why 54% say losing regular paychecks is concerning, and 23% describe the prospect as "terrifying." Terrifying! That's not a word people throw around lightly when talking about their financial future.

Current Retirees Aren't Feeling Much Better

Those who've already retired aren't exactly radiating confidence either. Roughly 62% say they don't know how long their savings will last. Nearly six in ten wish they had done more planning before leaving the workforce.

Reality has been a bit of a letdown for many retirees. The survey found that 74% of retirees are living on less than 75% of their last paycheck. Nearly half, 46%, are getting by on less than half of what they used to earn.

About half of retirees also admit they don't have a structured strategy for generating retirement income. Among those who do have a plan, the common approaches include systematic withdrawals, CDs, and dividend-producing investments.

People Want Help, and They're Asking For It

The good news? Americans are aware they need support. A full 90% of workplace plan participants said they'd be interested in an investment product designed to grow assets while managing risk.

Boyden noted that employers, advisors, and asset managers all have a role to play in making retirement income planning less intimidating. With so many Americans planning to claim Social Security early — even though they know waiting would pay off — anything that reduces uncertainty could make a real difference for future retirees.

The takeaway here isn't complicated: people understand the benefits of patience, but fear and immediate needs often trump long-term optimization. When you're worried about running out of money or whether Social Security will even be there, grabbing what you can now starts to feel like the safer bet, even if the math says otherwise.