A growing wave of Americans are filing for Social Security earlier than planned. This is driven by mounting fears over personal finances, policy shifts, and the long-term stability of the program. New data from the Social Security Administration (SSA) shows a “dramatic increase” in initial retirement benefit applications since January.
This is particularly true among high-income earners. Christine Banner, 65, originally intended to wait until age 67 to start receiving her Social Security checks. Instead, concerns over changes at the SSA and rising economic uncertainty pushed her to file early.
Her first check, arriving in June, will total $1,633. This is $130 less per month than if she had waited until her full retirement age. Her husband, Clint Banner, 67, cited growing political rhetoric as a major factor.
“We wanted to get her foot in the door and be grandfathered in,” he explained. SSA officials noted in a recent operational meeting that the number of new claims for retirement benefits has surged far beyond typical seasonal fluctuations. According to an SSA email, three main factors are fueling the increase:
1.
A record number of Americans are turning 65, triggering what experts are calling the largest retirement wave in U.S. history. 2. New legislation has expanded benefits for retired public service workers and provided retroactive payments starting in March.
Americans claim Social Security early
3. Spouses and surviving spouses are receiving alerts that they may be entitled to higher benefits, prompting many to apply or adjust their claims.
Some experts say fear and confusion are playing just as big a role. “There’s definitely anxiety out there,” said Kathleen Romig, director of Social Security and disability policy at the Center on Budget and Policy Priorities. The 2024 Social Security and Medicare Trustees Report estimates that without legislative action, the program’s trust fund could run dry by 2035.
This doesn’t mean Social Security will disappear, but benefits could be reduced by about 17%. The flood of applications has put major strain on SSA operations. More than 614,000 non-disability retirement claims were pending as of mid-April.
Call volumes to SSA’s toll-free number are up 22% year-over-year. Local offices are seeing a spike in visits from anxious retirees requesting printed earnings statements and certified records. “We have a lot of customers who are very uneasy right now,” acting SSA Commissioner Leland Dudek admitted during a March meeting.
Beyond political concerns and systemic fears, many retirees are also making decisions based on everyday economics. A recent Gallup poll found that 29% of Americans cite inflation as the top financial challenge facing their families, while 53% say their overall financial situation is worsening. For many, especially those nearing retirement age, job loss or reduced income makes delaying Social Security simply unaffordable.
As uncertainty mounts and more Americans reach retirement age, the rush to claim Social Security early shows no signs of slowing. While early filers receive reduced monthly benefits, many feel the peace of mind is worth the trade-off.
