More Americans are claiming Social Security benefits early this year. The Social Security Administration has seen a “dramatic increase” in applications for retired worker benefits since January. An official at the SSA noted a “large surge” in applications, highlighting a significant deviation from the typical pattern seen in recent years.
As of mid-April, there were 614,000 pending non-disability or retirement claims. The SSA Press Office cited three key reasons for the rise in applications: the record number of baby boomers turning 65 and retiring, the Social Security Fairness Act increasing benefits for some retired public service workers, and cyclical mailers informing spouses and surviving spouses about available benefits. However, some experts argue that fear and confusion about the program’s future are also driving the surge.
The 2024 Social Security and Medicare Trustees Report predicts that the combined retirement and disability trust fund reserves might go broke by 2035, though the program will continue to pay reduced benefits at 83%.
Increase in early Social Security claims
Calls to the SSA’s 800 number have increased by 22% compared to the same time last year.
“We have a lot of Americans that are very uneasy,” said Leland Dudek, acting Social Security commissioner. Seniors are also visiting local field offices in large numbers seeking certified copies of their earnings statements. Mark Miller, a social security expert, noted that “fear” and “unease” are prevalent among potential beneficiaries given the headlines and frequent changes in administration policies.
Factors like job loss and rising costs can also lead to early claims of benefits for those nearing retirement. Christine Banner, 65, is among those who decided to claim benefits early. She will receive her first check in June, $130 less each month than if she had waited until her full retirement age of 67.
Her husband, Clint, said they needed a more stable income and were worried about the political and financial environment.