5. Many women still don't have retirement accounts.

Only 57% of female respondents had retirement-related accounts or products, Koh said.

(Image: Adobe Stock)

Many working Americans expect to leave money on the table when they retire. Although 70% understand that waiting longer to claim Social Security would increase their monthly payments, 44% plan to file before reaching age 67, and only 10% say they will wait until they are 70, according to the Schroders 2025 U.S. Retirement Survey.

“The income generated from monthly Social Security payments is critical to making ends meet in retirement for many Americans,” said Deb Boyden, head of U.S. defined contribution for the global investment manager. “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.”

Respondents cited several reasons for not waiting until they can claim their maximum monthly benefit:

  • Wanting access to the money as soon as possible (37%)
  • Concerned Social Security may run out of money or stop making payments (36%)
  • Worried they will need the money earlier for regular income (34%)
  • Was advised to take it earlier than age 70 (15%)

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 from to generate this monthly income include cash savings (60%); workplace 401(k), 403(b) or 457 plan (45%); investment income (34%); a spouse’s 401(k), 403(b) or 457 plan (30%); and their spouse’s pension plan (22%).

Thirty-nine percent of respondents participating in a workplace retirement plan said their plan included a retirement income solution, 34% don’t know and 27% said their plan doesn’t 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%.

Among respondents who already have retired, 62% admit they have no idea how long their savings will last, and 58% said they wish they had done more planning before retirement. Nearly three-quarters of retirees generate less than 75% of their last paycheck in monthly income, and 46% live on less than half of their preretirement income. About half of retirees surveyed have no specific strategies for generating income in retirement.

“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,” Boyden said. “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.”

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