Confirming that Social Security remains fertile territory through which advisors can add value for clients, a new survey lays things out in clear and simple terms: Many Americans are claiming benefits too early.

As a refresher, Social Security can be claimed as young as 62 years old, but that’s five years prior to the full retirement age for folks born in 1960 or later, meaning those that claim at 62 miss out on some monthly cash. Maximum benefits cannot be claimed until age 70, so those in the impatient Social Security camp really do cost themselves a decent chunk of change, particularly if they live well into their 80s or beyond.

As the Schroders 2025 US Retirement Survey points out, 87% of respondents are concerned about generating adequate income in retirement while 53% are worried about outliving their assets. Yet many are preparing to commit Social Security missteps.

“Despite these challenges, 44% of non-retirees plan to file for Social Security benefits before reaching age 67 – the full retirement age for everyone born in 1960 or later, and just 10% plan to wait until age 70, when an individual reaches their maximum monthly benefit,” according to Schroders.

Advisors Can Help Clients Avoid Social Security Errors

Undoubtedly, advisors can help clients avoid Social Security mistakes. Accomplishing that objective boils down to understanding why a client may want to access Social Security early. Advisors should also note that these conversations could take some convincing because, according to Schroders, 70% of those queried know that they’re costing themselves money by taking benefits at younger ages.

Thirty-seven percent told Schroders they simply want to access the money, which they paid for, as soon as possible and nearly the same percentage said they’re concerned about the health of the system. The latter concern, though valid, is likely more pressing for younger folks with multi-year if not multi-decade timelines to retirement.

Advisors can also make a positive Social Security impacts by working with clients on the right income-generating strategies because 34% told Schroders they’re concerned about income streams in retirement.

Advisors can also be forces for good by clearing up some common myths. For example, 15% of those polled told Schroders they were advised by someone else, perhaps another advisor or a friend or relative, to claim Social Security before age 70.

Being Patient Pays Off

It’s understandable that clients are worried about the health of Social Security, their retirement income needs and potentially outliving their assets.

“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, 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.”

All of that speaks to the advantages of waiting until 70 to claim Social Security. Figure it this way. Still working Americans told Schroders they think they’ll need $5,032 per month to live comfortably in retirement. It just so happens that someone retiring at age 70 this year will be able to claim $5,108 per month, according to the Social Security Administration.

Related: