87% of Americans concerned about post-retirement finances; many plan early Social Security withdrawals: Survey

Social Security: Concerns about earning income post-retirement are worrisome. At least 87% Americans are already worked up about their plans once they retire, according to a study conducted by Schroders. There are different issues bothering the participants of the survey; however, they connect directly to their earnings, spending and savings after their retirement.

According to a CBS report, the survey, published on 21 October, reveals that most Americans are not willing to wait until they turn 70 to receive Social Security income. Almost 45% of non-retirees are willing to take Social Security benefits before they reach the age of 67.

What is Social Security Income, and how does it benefit retirees?

Social Security is a special financial program in the US enacted to help senior citizens, the disabled and survivors. It is run by the Social Security Administration (SSA). While it helps a wide variety of financially dependent categories, it has been mostly referred to as a post-retirement insurance plan, which helps senior retired citizens to get a fixed amount of income every month, like their salaries, as per Investopedia.

Retired individuals can avail this income benefit if they have earned at least 40 work credits, with a maximum of four credits annually. The income is deducted from their payrolls for employed individuals, or through taxes for businesspersons.

While one can start earning Social Security income once they turn 62 and fulfill the credit requirements, it is beneficial to wait till the full retirement age to receive maximum benefits.

Why are Americans concerned?

While many Americans want to avail Social Security benefits before they reach the full retirement age, their concerns are different. As per the survey, 36% of respondents believe that if they wait, the funds may dry up or the government may stop paying such benefits altogether. Another 34 per cent want to treat Social Security income as an additional earning apart from salaries. Meanwhile, 15% want it early if they are advised to do so. This leaves only 10% of respondents waiting till they reach 70 to avail Social Security benefits.

Deb Boyden, an expert at Schroders, believes that Social Security income is an important financial source for many. Moreover, reports regarding solvency are making Americans anxious about their financial future.

FAQs

1. What did the Schroders survey reveal?

It found that 87% of Americans are concerned about income after retirement.

2. When do most plan to claim Social Security?

Around 45% plan to start benefits before age 67, rather than waiting until full retirement age.

3. What is Social Security income?

It’s a federal program providing monthly payments to retirees, disabled individuals, and survivors. For retirees, it is valid based on earned work credits.