87% of Non-Retired Americans Are Concerned About How to Generate Income in Retirement

Just 10% Plan to Wait Until Age 70 to Claim Maximum Social Security Benefit

According to the Schroders 2025 US Retirement Survey, nearly 9-in-10 non-retired Americans (87%) are at least slightly concerned about not knowing how to generate income in retirement, and over half (53%) are “concerned” or “very concerned” about outliving their assets. 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.

Leaving money on the table is a deliberate decision for most non-retired Americans, as 70% report they understand that waiting longer to claim Social Security would increase their monthly payments. The motives for planning to claim Social Security before age 70 include:

• I want access to the money as soon as possible (37%)
• I’m concerned Social Security may run out of money or stop making payments (36%)
• I will need the money earlier for regular income (34%)
• I was advised to take it earlier than age 70 (15%)

“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.”

On average, non-retired Americans believe they must generate $5,032 in monthly income to retire comfortably. In addition to Social Security, the sources they expect to draw upon to generate this monthly income include:

• Cash savings (60%)
• Workplace 401k, 403b or 457 plan (45%)
• Investment income (34%)
• A spouse’s 401k, 403b or 457 plan (30%)
• A spouse’s pension plan (22%)

Thirty-nine percent (39%) of Americans participating in a workplace retirement plan said their plan included a retirement income solution, 34% don’t know, and 27% report their plan does not offer any retirement income products.

Notably, 90% of workplace retirement plan participants said they would be interested in a retirement investment product from their employer that actively manages the risk of loss while seeking to grow assets at a rate equal to the current cash rate plus 5%.

When asked if they expect to be able to replace at least 75% of their last paycheck in retirement income, non-retired Americans are split:

• Definitely (11%)
• Probably (39%)
• Probably not (35%)
• Definitely not (15%)

This uncertainty appears to be fueling anxiety, as 54% of non-retired Americans said the idea of no more regular paychecks is “concerning” and 23% describe it as “terrifying.”

Retirees Unsure How Long Their Savings Will Last

Among survey respondents who have already retired, 62% admit they have no idea how long their savings will be able to last, and 58% said they wish they had done more planning before their retirement.

Nearly three-quarters (74%) of retirees generate less than 75% of their last paycheck in monthly income, and 46% live on less than half of their pre-retirement income.

About half (52%) of retirees surveyed don’t have any specific strategies for generating income in retirement. For those that do, the top three strategies include:

• Systematic withdrawals from retirement accounts (25%)
• Certificates of Deposit (CDs) (21%)
• Dividend-producing stocks or mutual funds (21%)

“Many Americans do not manage their retirement savings as effectively as they could, and as a result, they must make tough choices when beginning to withdraw assets to cover their expenses,” said Boyden. “All of us who work in the defined contribution plan industry - including plan sponsors, asset managers, and advisors - must continue to innovate to provide solutions that remove the complexity and anxiety out of the retirement income equation.”

For more information on the Schroders 2025 U.S. Retirement Survey, click here.

About the Survey

The Schroders 2025 US Retirement Survey was conducted by 8 Acre Perspective among 1,500 US investors nationwide ages 29-79, including 602 currently participating in a workplace retirement plan, from March 25 to April 17 in 2025.

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Schroders plc

Schroders is a global investment manager which provides active asset management, wealth management and investment solutions, with £776.6 billion (€906.6 billion; $1,064 billion) of assets under management at 30 June 2025. As a UK listed FTSE100 company, Schroders has a market capitalisation of circa £6 billion and over 6,000 employees across 38 locations. Established in 1804, Schroders remains true to its roots as a family-founded business. The Schroder family continues to be a significant shareholder, holding approximately 44% of the issued share capital.

Schroders' success can be attributed to its diversified business model, spanning different asset classes, client types and geographies. The company offers innovative products and solutions through four core business divisions: Public Markets, Solutions, Wealth Management, and Schroders Capital, which focuses on private markets, including private equity, renewable infrastructure investing, private debt & credit alternatives, and real estate.

Schroders aims to provide excellent investment performance to clients through active management. This means directing capital towards resilient businesses with sustainable business models, consistently with the investment goals of its clients. Schroders serves a diverse client base that includes pension schemes, insurance companies, sovereign wealth funds, endowments, foundations, high net worth individuals, family offices, as well as end clients through partnerships with distributors, financial advisers, and online platforms.

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