A wave of early Social Security claims—Here’s what’s behind it
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If you’ve been paying attention to the news—or chatting with friends at your favorite coffee spot—you might have heard a new buzz: more Americans are claiming Social Security earlier than ever before.
In fact, between January and May of this year, the number of people filing for retirement benefits shot up by nearly 18% compared to the same period last year. That’s not just a blip on the radar; it’s a seismic shift in how Americans are approaching retirement.
So, what’s behind this unexpected surge? Is Social Security really at risk, or is something else driving this rush to claim benefits? Let’s dig into the facts, the fears, and what it all means for you and your nest egg.
A Perfect Storm: Why the Rush to Claim?
Traditionally, Social Security claims follow a predictable pattern—more people file as the population ages, and there are seasonal upticks as folks hit milestone birthdays. But this spring, experts noticed something different.
Jack Smalligan, a senior policy fellow at the Urban Institute, called it “disconcerting,” especially since most financial advisors recommend waiting as long as possible to claim benefits.
Why? Because the longer you wait (up to age 70), the bigger your monthly check.
So, what’s changed? According to the Social Security Administration, three main factors are at play:
1. The Baby Boomer Generation Wave: The largest generation in American history is hitting retirement age, and many are ready to collect what they’ve earned.
2. Rule Changes: Recent tweaks to Social Security rules have increased benefits for some people with pensions, making it more attractive to file now.
3. Spousal Benefit Shifts: More people who were collecting spousal benefits are now re-filing to claim higher benefits based on their own work records.
But there’s another, less tangible factor: anxiety about the future. Many Americans, especially those in their early 60s, are worried about the economy, potential changes to Social Security, and their own health and job prospects.
“Get It While You Can”: The Power of Uncertainty
Take Bill Armstrong, a 62-year-old from Colorado. After a career in IT, a cancer diagnosis, and a tough job market, Bill decided to claim Social Security as soon as he was eligible. His reasoning?
Also read: Are you making this costly Social Security mistake? Find out why this mistake could hurt your retirement
“I better get in the system before they move that age higher,” he says. Bill’s not alone—many in his circle are making the same choice, driven by fears that the rules could change or benefits could be cut.
This isn’t just idle speculation. The last time Congress raised the full retirement age was in 1983, and while there’s no immediate plan to do it again, the mere possibility is enough to make some folks nervous.
Add in political uncertainty and headlines about Social Security’s long-term funding, and it’s no wonder people are feeling jittery.
The Financial Trade-Off: Should You Claim Early?
Let’s be clear: claiming Social Security early is a big decision, and it comes with trade-offs.
For every year you wait past age 62, your monthly benefit grows by about 8%—that can add up to hundreds of dollars more each month, and thousands over your lifetime. For women, who tend to live longer, the stakes are even higher.
Karen Mccahey, 66, from suburban Chicago, planned to wait until 70 to claim her benefits.
But after the pandemic and changes in the political landscape, she decided to file early—even though she doesn’t need the money right now. “I’ll just put it in the bank,” she says, acknowledging that her benefit will be lower for life.
Financial advisors almost universally recommend waiting if you can afford it. But as Karen and Bill’s stories show, sometimes peace of mind outweighs the math.
Related story: Think you can beat the system? The truth about taking Social Security early
Is Social Security Really in Danger?
Here’s where we separate fact from fear. Despite the headlines, Social Security isn’t about to disappear overnight.
As Kathleen Romig, director of Social Security and disability policy at the Center on Budget and Policy Priorities, points out: “It’s in the law and only an act of Congress can change that. And Congress would be foolish to try to take Social Security away at this point, when it’s so important in the fabric of American society.”
Even if Congress did decide to make changes—like raising the retirement age—it would take years to implement. Historically, these changes are phased in gradually, giving people plenty of time to adjust their plans.
Jack Smalligan agrees, saying, “There’s no reason to think that people’s benefits are at risk. I don’t think people should be claiming early because they think Social Security’s going to go away. It’s a very popular program for beneficiaries, as well as for Congress.”
What If You Change Your Mind?
Here’s a little-known fact: If you claim Social Security early and later regret it, you have a one-time option to withdraw your application within the first 12 months.
You’ll have to pay back any benefits you’ve received, but you can reapply later and lock in a higher monthly amount.
Read next: Record surge: Social Security filings set to top 4 million—Are delays next?
Have you recently claimed Social Security, or are you thinking about it? What factors are influencing your decision? Are you worried about the future of the program, or do you feel confident in your retirement plan? Share your story in the comments below!
In fact, between January and May of this year, the number of people filing for retirement benefits shot up by nearly 18% compared to the same period last year. That’s not just a blip on the radar; it’s a seismic shift in how Americans are approaching retirement.
So, what’s behind this unexpected surge? Is Social Security really at risk, or is something else driving this rush to claim benefits? Let’s dig into the facts, the fears, and what it all means for you and your nest egg.
A Perfect Storm: Why the Rush to Claim?
Traditionally, Social Security claims follow a predictable pattern—more people file as the population ages, and there are seasonal upticks as folks hit milestone birthdays. But this spring, experts noticed something different.
Jack Smalligan, a senior policy fellow at the Urban Institute, called it “disconcerting,” especially since most financial advisors recommend waiting as long as possible to claim benefits.
Why? Because the longer you wait (up to age 70), the bigger your monthly check.
There has been an unexpected surge in people claiming Social Security retirement benefits in the US, with numbers up nearly 18% from last year between January and May. Image source: Philippe Leone / Unsplash.
So, what’s changed? According to the Social Security Administration, three main factors are at play:
1. The Baby Boomer Generation Wave: The largest generation in American history is hitting retirement age, and many are ready to collect what they’ve earned.
2. Rule Changes: Recent tweaks to Social Security rules have increased benefits for some people with pensions, making it more attractive to file now.
3. Spousal Benefit Shifts: More people who were collecting spousal benefits are now re-filing to claim higher benefits based on their own work records.
But there’s another, less tangible factor: anxiety about the future. Many Americans, especially those in their early 60s, are worried about the economy, potential changes to Social Security, and their own health and job prospects.
“Get It While You Can”: The Power of Uncertainty
Take Bill Armstrong, a 62-year-old from Colorado. After a career in IT, a cancer diagnosis, and a tough job market, Bill decided to claim Social Security as soon as he was eligible. His reasoning?
Also read: Are you making this costly Social Security mistake? Find out why this mistake could hurt your retirement
“I better get in the system before they move that age higher,” he says. Bill’s not alone—many in his circle are making the same choice, driven by fears that the rules could change or benefits could be cut.
This isn’t just idle speculation. The last time Congress raised the full retirement age was in 1983, and while there’s no immediate plan to do it again, the mere possibility is enough to make some folks nervous.
Add in political uncertainty and headlines about Social Security’s long-term funding, and it’s no wonder people are feeling jittery.
The Financial Trade-Off: Should You Claim Early?
Let’s be clear: claiming Social Security early is a big decision, and it comes with trade-offs.
Many younger retirees, particularly 62-year-olds, are filing early due to worries about future changes to Social Security, the political climate, and concerns that the retirement age may be raised. Image source: Siarhei Plashchynski / Unsplash.
For every year you wait past age 62, your monthly benefit grows by about 8%—that can add up to hundreds of dollars more each month, and thousands over your lifetime. For women, who tend to live longer, the stakes are even higher.
Karen Mccahey, 66, from suburban Chicago, planned to wait until 70 to claim her benefits.
But after the pandemic and changes in the political landscape, she decided to file early—even though she doesn’t need the money right now. “I’ll just put it in the bank,” she says, acknowledging that her benefit will be lower for life.
Financial advisors almost universally recommend waiting if you can afford it. But as Karen and Bill’s stories show, sometimes peace of mind outweighs the math.
Related story: Think you can beat the system? The truth about taking Social Security early
Is Social Security Really in Danger?
Here’s where we separate fact from fear. Despite the headlines, Social Security isn’t about to disappear overnight.
As Kathleen Romig, director of Social Security and disability policy at the Center on Budget and Policy Priorities, points out: “It’s in the law and only an act of Congress can change that. And Congress would be foolish to try to take Social Security away at this point, when it’s so important in the fabric of American society.”
Even if Congress did decide to make changes—like raising the retirement age—it would take years to implement. Historically, these changes are phased in gradually, giving people plenty of time to adjust their plans.
Jack Smalligan agrees, saying, “There’s no reason to think that people’s benefits are at risk. I don’t think people should be claiming early because they think Social Security’s going to go away. It’s a very popular program for beneficiaries, as well as for Congress.”
What If You Change Your Mind?
Here’s a little-known fact: If you claim Social Security early and later regret it, you have a one-time option to withdraw your application within the first 12 months.
You’ll have to pay back any benefits you’ve received, but you can reapply later and lock in a higher monthly amount.
Read next: Record surge: Social Security filings set to top 4 million—Are delays next?
Have you recently claimed Social Security, or are you thinking about it? What factors are influencing your decision? Are you worried about the future of the program, or do you feel confident in your retirement plan? Share your story in the comments below!
