Maximizing Social Security Benefits Starts with the Choice of a Lifetime

Choosing when to start collecting Social Security is a big financial decision—maybe one of the most crucial of your life. Timing is everything, because when you decide to claim your benefits impacts the amount you’ll receive. That’s a big deal if, like most people, you’re counting on Social Security to cover all or most of your retirement income needs.

Here’s the reality: Social Security alone isn’t enough to support most people's retirement lifestyle. According to The Nationwide Retirement Institute^® 2024 Social Security survey, conducted by The Harris Poll, Americans’ anticipated retirement income replacement needs outpace the average Social Security benefit:

• American adults tell us that (on average) they expect to need around 60% of their pre-retirement income when they retire.
• Nearly half (45%) of respondents expect their Social Security benefits to be enough to cover only their basic needs in retirement.
• Social Security replaces just a fraction of an individual’s pre-retirement income, on average, even among those currently receiving benefits.

As you can see, there’s a noteworthy gap between Americans’ expected retirement income replacement needs (60%) and the average percentage of pre-retirement income that Social Security might replace (20-40%). Additionally, slightly more than half (51%) of our survey respondents acknowledged that they aren’t sure how to maximize their benefits.

Fully understanding your options can help you make the most of your Social Security benefits and help you achieve greater financial security in retirement.

How long will my retirement savings last?

This is a good first question to ask when considering ways to maximize your Social Security benefits. The short answer is: it depends. Various factors, including your goals, desired lifestyle, basic expenses vs. discretionary spending, and tax implications all play a role in how long your retirement savings will last. That’s why it’s important to understand your future financial needs as you plan for retirement.

Here are some other important questions to ask yourself:

• How much money will I need each month to cover ongoing essential living expenses, such as housing, transportation, and food?
• How can I maximize my income in retirement?
• How can I make the most of all my sources of income while minimizing tax impacts?
• How do I make sure my spouse can meet their income needs after I’m gone?

Maximize Social Security with a personalized plan

Starting Social Security benefits is a big decision. Generally, the longer you wait to collect your benefits, the higher your monthly benefit. But that isn’t always the case—for instance, if illness strikes or you retire early due to circumstances beyond your control, you may end up filing for benefits sooner than planned. Working with financial professionals can provide you with personalized guidance and strategies tailored to your unique situation. In fact, our survey found that those who work with a paid financial professional are twice as likely to know what percentage of their income will be replaced by Social Security in retirement.

A financial professional can give you confidence that when it comes time, your Social Security filing decision is the right one for you. They can provide guidance on:

• When to begin taking Social Security to maximize your benefits
• The amount of income you’ll need to replace in retirement
• Planning which accounts to pull income from while you delay filing for Social Security
• Determining spousal benefit strategies—more than half of American adults (56%) are interested in talking with a financial professional about this topic, according to our survey.
• Considering Social Security as just one aspect of your overall retirement income plan rather than relying on it alone to cover most of your future expenses

By seeking professional guidance, you can make informed decisions about when to claim Social Security benefits and how to optimize your retirement income. A financial professional can help you navigate the complexities of Social Security, create a robust retirement income plan, and provide ongoing support to help you achieve a secure retirement.

Methodology: The research was conducted online in the U.S. by The Harris Poll on behalf of Nationwide among 1,831 adults age 18+ who currently receive or expect to receive Social Security (“national sample”), including 313 Gen Z (age 18-27), 506 Millennials (age 28-43), 506 Gen Xers (age 44-59), and 506 Boomers+ (age 60+). Oversamples were also collected for a total of 630 Asian adults and 526 adults ages 60-65. The survey was conducted April 19-May 13, 2024.

Data are weighted where necessary by age by gender, race/ethnicity, region, education, marital status, household size, household income, and smoking status to bring them in line with their actual proportions in the population. To ensure the national sample was representative, the data were initially weighted by generation (Gen Z 18-27, Millennials 28-43, Gen Xers 44-59, and Boomers+ 60+) and then combined into a total age 18+ group. Data for Asian adults were weighted as needed by age by gender, region, education, marital status, household size, household income, and smoking status. Data for ages 60-65 adults were weighted as needed by age by gender, race/ethnicity, region, education, household income, retirement status, and smoking status.

Respondents for this survey were selected from among those who have agreed to participate in our surveys. The sampling precision of Harris online polls is measured by using a Bayesian credible interval. For this study, the sample data is accurate to within + 3.0 percentage points using a 95% confidence level. This credible interval will be wider among subsets of the surveyed population of interest. The sample data for the Asian sample is accurate to within + 5.5 percentage points using a 95% confidence level. The sample data for the age 60-65 adults is accurate to within + 5.3 percentage points using a 95% confidence level. All sample surveys and polls, whether or not they use probability sampling, are subject to other multiple sources of error which are most often not possible to quantify or estimate, including, but not limited to coverage error, error associated with nonresponse, error associated with question wording and response options, and post-survey weighting and adjustments.