Why are more Americans filing for Social Security benefits?

The Hill

a day ago

More older Americans are claiming their Social Security benefits earlier, a potentially alarming trend that could significantly reduce the income many rely on in their golden years.
As of May, individual retirement claims were up 13 percent in the current fiscal year compared to the same period last year, an increase of nearly 320,000 claims, according to the latest Social Security data.
To put the recent surge in perspective: From 2012 to 2024, retirement claims rose by an average of just 3 percent per year, according to an analysis by the Urban Institute, a research group.
Part of the recent uptick is due to more retirees claiming Social Security benefits earlier, a choice that permanently reduces their monthly checks if done before full retirement age.
Jack Smalligan, a senior policy fellow at the Urban Institute, described the increase in earlier claims as 'disconcerting' because it can impact people's 'long-term retirement security.'
'For most individuals, delaying the time that they claim Social Security is a smart retirement decision,' Smalligan said.
While demographic factors, such as an aging population, have contributed to the rise, increased concern over the Trump administration's handling of the system may also help explain the surge.
Social Security data shows the spike in monthly claims was especially pronounced in November and January — the month President Trump was elected and the month he took office.
Polling shows public concern about Social Security is now at a 15-year high, an uptick that coincides with the Trump administration's plans to slash the agency's workforce. The president and advisers, like Elon Musk, have made unfounded claims about rampant fraud within the system, while website outages have also caused confusion.
Smalligan pointed to the recent surge in calls to Social Security and the rise in field office visits as further signs of growing anxiety.
At the same time, top Democrats, including former President Joe Biden, have amplified those fears with misleading claims that give the impression Americans' monthly retirement checks may not arrive.
Senate Minority Leader Chuck Schumer (D-N.Y.) has warned that Trump and Musk are coming for people's benefits and hiding behind bogus fraud claims to justify stealing people's checks. The political rhetoric appears to be resonating, but it's also fueling the broader uncertainty, potentially causing real harm.
During a meeting in March, Social Security officials said that 'fearmongering has driven people to claim benefits earlier,' The Wall Street Journal reported.
Overall, 52 percent of Americans say they worry a 'great deal' about the Social Security system, up from 43 percent in 2024, according to Gallup. Among Democrats and Democratic-leaning independents, that figure rises to 65 percent — a 30-point increase from the previous year.
'No one's scheming right now to privatize Social Security or dismantle it … that type of fearmongering is not helpful,' said Charles Blahous, a researcher at the Mercatus Center at George Mason University who specializes in Social Security.
While Social Security does face long-term financial challenges, the system isn't going away, and future policy uncertainty isn't a good reason to claim benefits early today, Blahous said.
Trump has repeatedly promised not to cut Social Security benefits, while Democrats argue that staffing reductions will make it harder for retirees to access services, undermining the system in a different way.
Other factors, unrelated to political rhetoric, could also be driving the rise in retirement claims.
There are three key reasons for the uptick, according to a Social Security official:
Blahous acknowledged that the three factors are real but thinks 'the jury's still out' on how much of the recent rise is due to anxiety about the program's future.
Another possibility is that stock market volatility, partly driven by Trump's ever-changing trade policies, temporarily lowered the balances of millions of retirement accounts and prompted some older Americans to claim their more reliable Social Security benefits earlier than planned.
Americans can start collecting Social Security retirement benefits as early as age 62, but that doesn't mean they should.
Claiming before full retirement age permanently reduces monthly benefits, which is why waiting often makes more financial sense. It's even more concerning when that decision is driven by fear about the program's future rather than a careful assessment of personal circumstances.
'It's basically an irrevocable decision, which is all the more reason why people should be very cautious about when they make it,' Blahous said.
Someone who turns 62 in 2025 would see their monthly benefit lowered by about 30 percent versus what it would be at their full retirement age of 67.
On the other hand, those who delay claiming until after their full retirement age receive an 8 percent increase for each year they wait, up to age 70. That can amount to thousands of dollars.
In 2025, the maximum Social Security benefit is $2,831 for someone retiring at 62, but it rises to $5,108 for those retiring at 70.