A new Northwestern Mutual study finds a large share of Americans approaching retirement plan to begin collecting Social Security at the earliest possible age, underscoring widespread anxiety about the program’s future. More than a quarter of Generation X respondents and about 40% of baby boomers said they intend to start benefits at age 62, even though doing so can substantially reduce monthly payments, the insurer’s research shows.
The study highlights how concern about Social Security’s solvency is influencing retirement decisions. Researchers note that withdrawals from the program currently exceed contributions, a dynamic that could, absent legislative fixes, require cuts to retiree and disability benefits. Roughly one-third of Americans surveyed said the question “Will Social Security be there when I qualify for it?” is their top retirement worry, topping other common concerns such as outliving savings or planning for long-term care.
Generational differences are apparent in plans to delay benefits. Only about 30% of Gen Xers — whose oldest members are turning 61 this year — and 21% of boomers said they plan to postpone claiming benefits as long as possible to maximize monthly checks. Fewer than half of both groups said they expect to wait until their full retirement age to begin benefits. The study’s authors say that fear of program cuts is one factor pushing workers to claim earlier rather than risk receiving nothing or smaller payments later.
Northwestern Mutual financial adviser Keller Lindler, cited in the report, said the uncertainty surrounding Social Security is “one factor driving the increasing amount of money workers say they will need to feel financially secure when they retire.” That “magic number” has risen to $1.46 million on average in the firm’s findings — an increase of more than 15% from last year and up from about $1.25 million four years ago.
The timing of when to claim Social Security involves trade-offs. Claiming as early as age 62 can reduce monthly benefits by as much as 30% compared with waiting until full retirement age; for people born in 1960 or later, full retirement age is 67. Conversely, delaying benefits beyond full retirement age earns delayed retirement credits — roughly an 8% boost to monthly payments for each year deferred until age 70, when credits stop accruing. Financial planners caution that decisions also hinge on other assets, health status and family longevity patterns, not just program solvency.
The Northwestern Mutual study adds pressure to the public-policy debate over Social Security’s long-term financing. With a significant portion of near-retirees leaning toward early claiming out of concern, the findings suggest both individual financial strategies and broader policy choices will shape retirement security for millions in the decades ahead.