Social Security rewards waiting till one age with a bigger safety net

After decades of saving for retirement, many Americans find that spending the money they worked so hard to accumulate is harder than expected. Retirees often worry that each withdrawal brings them closer to running out of money.

Prudential Financial’s 2026 Retirement Pulse survey suggests this anxiety is widespread among Americans aged 50 and older, highlighting the emotional and financial challenges of turning retirement savings into a reliable source of income.

Research from the National Bureau of Economic Research (NBER) also shows that when you claim your benefits, it can significantly affect your financial future, not just how much you have saved.

Also Read: Social Security’s estimator makes one costly assumption

Prudential found that 86% of older Americans fear spending their savings

The Prudential Financial survey polled 3,023 adults aged at least 50 between July 27 and August 2 2026. The results showed that 86% of respondents do not feel free to spend their retirement savings on things they enjoy.

That reluctance persisted among wealthier households, too, with 61% of those with $500,000 or more reporting discomfort with discretionary spending.

The top concern was uncertainty about Social Security’s long-term availability, cited by 44% of respondents, while inflation ranked second at 42%.

Healthcare and long-term care expenses were the top three barriers at 34%, while only 14% reported feeling at ease using savings monthly. Two-thirds (66%) of respondents said they would choose a guaranteed monthly check for life over receiving a lump sum.

How delayed retirement credits build a bigger Social Security safety net

The Social Security Administration (SSA) increases a worker’s monthly benefit by two-thirds of 1% for every month they delay claiming past full retirement age (FRA). That boost translates to an 8% raise for each full year of delay, with credits stopping at age 70.

For workers born in 1960 or later, FRA is now 67, creating a 3-year window to accumulate delayed retirement credits, the SSA confirmed.

Claiming at FRA delivers 100% of the earned benefit, while waiting until 70 produces a permanent increase of approximately 24% over that baseline.

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A worker whose monthly benefit at FRA would be $2,500 could see that check grow to roughly $3,100 by claiming at 70 instead. That extra $600 per month covers a larger share of fixed costs like housing and Medicare premiums, reducing the draw on savings for everyday expenses.

Each annual cost-of-living adjustment makes the gap permanent, increasing the value of delaying benefits over time. The SSA also notes that delayed credits continue to grow even if a worker stops earning wages after reaching full retirement age.

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A bigger Social Security check changes how retirees approach their savings

Economists at Boston University and the Federal Reserve Bank of Atlanta analyzed claiming patterns in the NBER study. The researchers concluded that over 90% of workers aged 45 to 62 should wait until 70 to collect, yet only 10.2% delay that long.

Workers who claim before the optimal age lose a median of $182,370 in lifetime household discretionary spending. That financial loss underscores why the size of a retiree’s guaranteed monthly income has so much weight in spending decisions.

For workers whose health and household cash flow permit the wait, Blanchett has argued the delay years can be bridged through part-time earnings, measured portfolio drawdowns, or spousal claiming coordination.

Respondents who had or expected guaranteed retirement income through a pension or annuity were 43% more likely to feel comfortable spending, Prudential’s survey indicated.

David Blanchett, head of retirement research at Prudential Financial, addressed that spending paradox at a New York media event, as reported by Plansponsor.

If people can't enjoy their retirement savings, what was the point [of saving]?

The survey showed that pre-retirees with a retirement plan were 56% more likely to spend comfortably, and those with a withdrawal strategy were 52% more confident.

How workers can calculate the gap Social Security leaves

Workers approaching retirement can calculate their benefit at ages 62, FRA, and 70 using the SSA’s online retirement estimator, which draws on individual earnings records. That personalized figure shows how much of a household’s fixed costs Social Security covers, and the gap personal savings will need to fill.

The Employee Benefit Research Institute’s (EBRI) 2026 Retirement Confidence Survey found that workers’ overall confidence fell 6 points to 61%. That dropped worker confidence to its lowest point in nearly a decade, reinforcing why quantifying guaranteed income before retirement has become urgent.

Blanchett has argued that retirees who know how much Social Security pays each month can estimate the remaining gap more precisely before drawing on savings. That clarity separates retirees who spend with purpose from those who hold back out of fear, he noted.

Related: Social Security hides a double tax break inside one loss

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This story was originally published November 3, 2026 at 8:17 AM.