Americans worry about retirement income sustainability
Nearly 90% of working-age Americans are concerned about how they’ll generate income in retirement — and more than half worry about outliving their savings.
That’s according to the 2025 U.S. Retirement Survey by Schroders, a London-based multinational asset manager. The report, released Tuesday, found that 87% of Americans who’ve yet to retire expressed at least some concern about not knowing how to produce income in retirement. And 53% said they were “concerned” or “very concerned” about exhausting their assets.
Coinciding with these worries, 44% of respondents plan to claim Social Security benefits before age 67, and only 10% intend to wait until age 70, when monthly payments reach their maximum level.
The top reasons cited for this trend were the desire to access funds as soon as possible (37%); fear that Social Security could run out of funds (36%); and needing the income sooner (34%).
“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 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.”
Nonretired Americans reported that they would need an average of $5,032 per month to retire comfortably. They expect to draw that income from a mix of sources, including cash savings (60%); workplace retirement plans such as 401(k)s (45%); investment income (34%); and their spouse’s retirement plans (30%).
Among workplace plan participants, 39% said their plans include a retirement income solution, while 27% said they do not and 34% were unsure.
Interest in employer-provided income products is high, with 90% of respondents reporting interest in an investment product that manages downside risk while targeting returns of the cash rate plus 5%.
When asked if they expect to replace at least 75% of their last paycheck in retirement, just 11% said “definitely,” and 39% said “probably.” Another 50% said “probably not” or “definitely not.”
Among respondents who have already retired, 62% reported having no idea how long their savings will last, and 58% expressed regret that they had not done more planning before leaving the workforce.
Most retirees (74%) reported earning less than 75% of their final paycheck in monthly income, while nearly half live on less than 50% of their previous earnings.
Only about half of retirees have a defined strategy for generating income. The most common approaches include systematic withdrawals from retirement accounts (25%), certificates of deposit (21%), and dividend-paying 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,” Boyden said. “Those of us in the defined contribution industry must continue to innovate to make the retirement income process simpler and less stressful.”