Most Americans understand that delaying Social Security benefits as long as possible will result in a bigger monthly paycheck, but many are willing to sacrifice the extra income, according to the “Schroders 2024 U.S. Retirement Survey.”

The nationwide survey of 2,000 U.S. investors found that nearly three-fourths of non-retired Americans are aware that waiting longer to collect benefits would earn them higher payments. That is, if your full retirement age is 67 and you start your benefits at age 69, you would receive a credit of 8% per year, meaning you would receive 16% more than the amount you would have received at age 67.

But just one in 10 plan to wait until at least age 70, the age at which an individual reaches the maximum monthly benefit, the survey said. Non-retired Americans, it found, are most likely to file for benefits at age 65 (something 23% of those surveyed said) and 62 (the age cited by 12%), and 43% plan to collect the benefit before age 67, the full retirement age for those born in 1960 or later.

The top reason cited by non-retirees for wanting to take benefits before age 70 is that they will need the money (something noted by 39% of respondents). That was closely followed by concerns that Social Security could become depleted and payments will stop (a concern noted by 38%). Thirty-six percent indicated that they want access to the money as soon as possible, and 12% said they were advised to take it earlier than age 70.

Despite leaving money on the table, most respondents (88% of them) are somewhat worried about not knowing how to generate income during retirement. Moreover, more than half (57%) said the idea of not receiving a regular paycheck is worrisome while 22% said it is terrifying. Also noteworthy is that non-retirees believe they need $4,947 on average in monthly income to live comfortably, which is higher than the $4,258 of monthly income retirees report they are generating, the survey said.

Besides Social Security, 60% of non-retired Americans said the top income sources they plan to draw upon include cash savings, while 48% of them said they plan to use workplace 401(k), 403(b) or 457 plans. Thirty-seven percent of them said they plan to use their spouse’s workplace 401(k), 403(b) or 457 plans, while 36% said they would use investment income, and 27% said they would use a spouse’s pension plan.

Nine in 10 respondents, those who participated in a workplace retirement plan, expressed a strong interest in an employer-based retirement investment product that actively manages the risk of loss while seeking to grow assets at a rate equal to the current cash rate—plus 5%. But such a solution is not widely offered by employers. Thirty-eight percent of plan participants said their plan provided a retirement income solution (up from 31% in 2023); 36% said they didn’t know if it was offered, and 26% said it was not offered through their employer.

“With working Americans increasingly looking to their employers for answers, plan sponsors and assets managers have an opportunity to work together to develop solutions that create a stronger bridge between the asset accumulation and decumulation phases to grow and preserve plan participant wealth while simultaneously providing an opportunity to optimize the timing of their Social Security benefits,” said Deb Boyden, the head of U.S. defined contribution at Schroders, in a statement.

The "Schroders 2024 U.S. Retirement Survey" was conducted from March 15 to April 5. It included 2,000 U.S. investors nationwide, ages 28 to 79, including 780 Americans who currently participate in a workplace retirement plan.