Social Security retirement claims generally show predictable trends throughout the year, increasing as the population ages, according to Jack Smallgan, a senior policy fellow at the Urban Institute. However, an unusual spike occurred this spring, catching experts off guard.
From January to May, the number of applications jumped by nearly 18% compared to the same period last year.
This trend is puzzling. Smallgan notes, “For many, it would make more financial sense to delay their claims as long as possible.” Waiting means potentially higher monthly benefits.
“I wonder if this is mainly people who were considering retiring six months from now accelerating their plans, or if these are individuals who’ve fundamentally changed their retirement timelines,” he adds.
Funding for Social Security comes from payroll taxes. Employees and employers contribute during working years, and retirement benefits are based on those contributions. The earliest individuals can start claiming is at age 62, although waiting until age 66 or 67, or even 70, can lead to higher monthly payouts.
What accounts for this recent rise in claims? The Social Security Administration attributes it to several factors. New rules have modified benefits for some recipients, and those receiving spousal benefits have reapplied for larger amounts based on their own records.
Yet, there seems to be another significant factor among those in their sixties: worries about the economic landscape under the current administration.
“We should get it as much as possible.”
A recent agency report indicated a notable year-over-year increase in claims from those aged 62—the earliest filing age.
Bill Armstrong, a resident of Barthowdo, Colorado, reflects his concerns about retirement. He transitioned to considering early Social Security benefits after the last election, fearing about the future job market and potential changes to retirement age policies.
“The political landscape and Project 2025 made me think my career could change drastically. I’m facing cancer and with a single income, it seemed wiser to secure benefits before age thresholds shift,” he shares.
The last time Congress adjusted the retirement age was in 1983, a process that unfolded over several years.
Armstrong emphasizes that Social Security benefits are earned: “We’ve all contributed, in my case for 42 years.”
While President Trump has said he wouldn’t interfere with Social Security, Armstrong is not entirely reassured, noting that many he knows are making similar decisions out of fear.
“We feel like it could be taken away, so it’s better to claim now,” he adds.
A former head of the Social Security Agency acknowledged these concerns in a meeting earlier this year, revealing that fear often influences quicker claims.
“I’ll put it in the bank.”
Meanwhile, Karen McChahay, who turned 66, altered her retirement plans following Trump’s election. Initially aiming to delay until 70 to maximize her benefits, she’s reconsidered those plans.
Living near Chicago, McChahay now feels apprehensive about the future, particularly regarding healthcare access and economic stability following the pandemic. “Having seen friends and acquaintances’ struggles has shifted my perspective. I might not even need the funds, but I’d rather have them on hand,” she admits.
However, she understands the long-term financial consequences; claiming early will mean lower benefits for her lifetime. Though Social Security typically adjusts with inflation, other savings may not.
“My financial advisor often recommends waiting until 70 to claim,” she confesses. “And I used to agree with him, but not anymore.”
“A very consequential decision.”
Internal analyses reveal that the increased claims are particularly notable among 62-year-olds, signifying a potential departure from previous financial planning norms.
It appears that higher income earners, who can usually afford to wait, are now making decisions influenced by factors beyond immediate financial needs.
This decision can be even more pivotal for women, who generally live longer than men. Each year you delay claiming boosts your benefits significantly.
Smallgan highlights that discussions about raising the early retirement age are serious. Any changes would take years to implement, and he advises against making hasty decisions based on fear.
“Social Security isn’t going anywhere,” says Romig, a director of social security policies. Legislative changes are complex, but she reassures that the system remains in place. “As long as people continue to contribute, the benefits remain.”
While there are questions surrounding the stability of Social Security, experts suggest there’s no immediate danger. “This program is incredibly popular among Congress and beneficiaries alike,” Smallgan concludes.
Lastly, if one chooses to apply for benefits early and later regrets that decision, it’s possible to withdraw claims within the first year post-approval, though the applicant must repay all funds received.
