Are you making this huge Social Security mistake? 90% of Americans ignore this crucial advice

Many Americans have heard the same golden rule: “Wait until age 70 to claim your Social Security benefits for the biggest monthly check.” But here’s the surprising twist—most people aren’t doing that at all.

A new study found that about 90% of Americans plan to claim earlier, locking in smaller payments for the rest of their lives.

So why are millions ignoring what experts call the smartest move for long-term income? Let’s take a closer look at what’s really behind this growing trend—and what it could mean for your retirement years.

The Social Security Waiting Game: What’s at Stake?​

Let’s start with the basics. Social Security allows you to start claiming benefits as early as age 62. Tempting, right? But there’s a catch: if you claim early, your monthly payment is slashed by about 30% compared to what you’d get if you waited until your “full retirement age” (currently 67 for most folks). And if you hold out until age 70, your monthly check jumps by about 30% over what you’d get at 67. That’s a big difference—especially when you consider those payments last as long as you do.

Financial experts have been shouting this from the rooftops for years: “Wait as long as you can!” The math is clear, and the extra income can make a huge difference, especially if you live a long, healthy life.

Why Are So Many People Claiming Early?​

If the advice is so good, why are so many Americans ignoring it? The Schroders survey of 1,500 adults found that only 10% plan to wait until age 70, while 44% expect to file before they even reach full retirement age. And it’s not because they don’t know better—70% of respondents said they understand that waiting means bigger checks.

So what gives? According to Deb Boyden, head of US defined contribution at Schroders, it’s not an oversight. It’s a reflection of financial reality. Many Americans simply can’t afford to wait. With retirement savings falling short for a growing number of people, Social Security becomes a lifeline the moment they stop working. For many, the need for immediate income outweighs the promise of bigger checks down the road.

The Knowledge Gap—and the Optimism Trap​

Another study, this one from the Allianz Center for the Future of Retirement, found that most Americans don’t know much about how Social Security fits into their retirement plan. Even more concerning, about 1 in 5 believe Social Security will provide all the income they need in retirement. In reality, Social Security is designed to replace only about 40% of your pre-retirement income. That leaves a big gap to fill with savings, pensions, or other sources.

Also read: Don’t overlook these 3 Spousal Social Security secrets every retired couple should know

The Elephant in the Room: Will Social Security Run Out?​

There’s another reason people are rushing to claim: fear. With headlines warning about Social Security’s shaky future, many worry the money might not be there if they wait. Social Security is indeed facing challenges. The US population is aging, and payments are now outpacing the contributions coming in from workers. According to the Social Security Board of Trustees, the trust funds could be depleted by 2034 if nothing changes.

But here’s what many people get wrong: even if the trust funds run dry, Social Security won’t disappear. Payments would continue, but they’d be reduced by about 20%. That’s a big cut, but it’s not the same as the program vanishing overnight.

What Can Be Done?​

Lawmakers have options to shore up Social Security, such as raising the income cap on Social Security taxes (currently $176,100). Right now, earnings above that amount aren’t taxed for Social Security, so increasing or eliminating the cap could bring in more revenue.

The Retirement Income Reality Check​

The Schroders study also revealed a sobering gap between what people think they’ll need in retirement and what they’re actually getting. Non-retired Americans say they’ll need about $5,032 a month to retire comfortably. But today’s retirees are averaging just $3,250 a month. That’s a shortfall of nearly $1,800 every month—a gap that can’t be ignored.

And it’s not just older Americans feeling the pinch. A recent Goldman Sachs analysis found that three-quarters of younger workers are struggling to save for retirement, thanks to rising costs for housing and other essentials.

What Should You Do?​

So, should you wait until 70 to claim Social Security? The answer isn’t the same for everyone. Here are some key questions to consider:

• Do you need the money now? If you can’t cover your basic expenses without Social Security, claiming early may be your only option.
• How’s your health? If you have reason to believe you won’t live well into your 80s or 90s, claiming earlier might make sense.
• Do you have other sources of income? If you have a pension, savings, or part-time work, you might be able to wait and lock in those higher payments.
• Are you worried about Social Security’s future? Remember, even if the trust funds run out, you’ll still get payments—just possibly at a reduced rate.

Read next:

• What Social Security really looks like at 72 in 2025
• Reminder: Social Security’s full retirement age is rising—here’s what to know before your next check
• Are you missing out on Social Security benefits? Here’s what to know about work credits

Key Takeaways

• Most Americans plan to claim Social Security before age 70, despite understanding they’d receive higher monthly payments by waiting.
• Many workers feel forced to take benefits early due to immediate financial needs or concerns that Social Security funds may run out in the future.
• There's widespread confusion about Social Security, with many not knowing how it fits into their retirement plans, and some overestimating how much of their income it will replace.
• A significant gap exists between what Americans think they need to retire comfortably and what current retirees actually receive, highlighting the need for better retirement planning.

Have you already claimed Social Security, or are you still weighing your options? What factors influenced your decision? Are you worried about the future of Social Security, or do you have a plan to fill the gap?