Americans Claiming Social Security Early Amid 2032 Solvency Fears

A Schroders survey of 1,500 U.S. adults found nine in 10 working Americans do not plan to wait until age 70 to claim Social Security benefits; about 44% intend to file before full retirement age (67) and roughly 10% plan to wait until 70. Claiming as early as 62 permanently reduces monthly benefits by roughly 30% compared with full retirement age, while delaying past 67 increases benefits by about 8% per year up to age 70, when payments are maximized. Research cited by reporters, including a National Bureau of Economic Research study, estimates claiming before 70 can cost people an average of about $182,000 in foregone benefits. Schroders and financial experts say most respondents knowingly accept that trade-off because many lack savings, face inflation-driven living-cost pressures, or need immediate income. Worry over Social Security’s solvency also influences decisions: trustees project the retirement trust fund could be depleted around 2032, which could trigger automatic benefit cuts estimated as high as about 24%. The combination of immediate financial pressures and solvency fears is driving widespread preference for earlier benefits despite warnings about substantial long-term income losses.