Social Security is a crucial part of retirement for millions of Americans. But recently, a growing number of people are choosing to claim these benefits earlier than they planned. Why is that happening? And more importantly, should you consider claiming your Social Security benefits early? This article breaks down the latest findings from the AARP’s reports and surveys to help you understand the current trend, what it means for your finances, and how to make the best decision for your future.
Why More Americans Are Claiming Social Security Early in 2025
There has been a noticeable increase in people filing for Social Security retirement benefits before reaching the full retirement age (currently between 66 and 67, depending on birth year). From January to July 2025, over 2.3 million Americans applied for these benefits early, a 16% increase compared to the same period in 2024.
What’s behind this surge? The main driver seems to be fear and confusion about Social Security’s future. Nearly half (49%) of those who claimed early said they were worried the program was running out of money. Media stories, proposed changes to the Social Security Administration (SSA), and frustrations with harder-to-access services at SSA offices have added to this anxiety.
AARP Report Reveals Why More Americans Are Claiming Social Security Early
| Key Aspect | Details |
|---|---|
| Increase in Early Claims | 2.3 million early claims from Jan-July 2025, up 16% YOY |
| Fear of Running Out of Money | 49% of early claimants cite this as a main reason |
| Full Retirement Age (FRA) | Between 66 and 67 years, depending on birth year |
| Earliest Claim Age | 62 (with reduced benefits for claiming early) |
| Benefit Reduction When Early | Up to 30% less monthly benefit if claimed at 62 |
| Benefit Increase When Late | Benefit increases about 8% for every year delayed past FRA, up to age 70 |
| Social Security Trust Fund | Projected to have surplus funds until about 2034-2035, then reduced |
| Official SSA Website | https://www.ssa.gov |
More Americans are claiming Social Security early, driven largely by fear and confusion about the program’s future and access difficulties at the SSA. However, claiming early results in lower monthly benefits and may reduce lifetime income, except if personal circumstances or health require it. The key is understanding how Social Security works, knowing your full retirement age, and making an informed, balanced choice based on your unique needs. The program remains a vital and reliable part of retirement planning, and waiting longer can often mean more financial security in your golden years.
Understanding Social Security: Basics You Need to Know
Social Security is funded through payroll taxes and provides monthly benefits based on your earnings history. You can choose when to start receiving retirement benefits between age 62 and 70:
- Age 62: Earliest you can claim, but monthly benefits are reduced (about 30% less).
- Full Retirement Age (FRA): Typically 66 or 67 depending on birth year; full benefit amount available.
- Age 70: Latest you can delay benefits, with boosts of 8% per year after FRA for higher monthly benefits.
The decision on when to claim affects how much money you receive monthly and over your lifetime. Claiming early means smaller monthly checks but starting sooner, while delaying benefits means higher checks but starting later.
Why Claiming Early Might Seem Attractive
1. Fear That Social Security Is Running Out of Money
About half of early claimants express concern that Social Security will run out of funds. While the Social Security Trust Fund is projected to run low on reserves around 2034 or 2035, it does not mean benefits will stop. Instead, payments may be reduced by approximately 19-20% unless lawmakers act. Social Security is funded by ongoing payroll taxes, so it can still pay a large portion of promised benefits even if reserves are depleted.
2. Administrative Challenges
Some people are frustrated by difficulty accessing SSA offices due to staffing cuts or limited in-person services, which has been a factor pushing earlier claims.
3. Financial Needs and Personal Circumstances
Health issues, job loss, or financial hardships may push people to claim early to secure some income. For some, the certainty of immediate money outweighs concerns about smaller payments in the future.
The Cost of Claiming Early: What You Need to Know
Claiming Social Security benefits early reduces your monthly payments permanently. Here are some examples:
| Age Claimed | % of Full Retirement Benefit | Approximate Monthly Benefit | Lifetime Impact* |
|---|---|---|---|
| 62 | ~70% | $1,260 (if FRA benefit is $1,800) | Permanently reduced monthly income |
| 65 | ~86.7% | $1,560 | Lower lifetime income than delayed |
| 67 (FRA) | 100% | $1,800 | Full benefit amount |
| 70 | 124% | $2,232 | Higher monthly checks, better long-term |
*Based on average life expectancy around 85 years.
This means if you claim at 65 instead of 70, you could lose tens of thousands of dollars in total benefits over your lifetime.
How to Decide When to Claim: A Practical Guide
Step 1: Know Your Full Retirement Age
Check the SSA website to find your specific full retirement age based on your birth year. This is the age for your full monthly benefit.
Step 2: Evaluate Your Health and Life Expectancy
If you have health concerns or a shorter life expectancy, early claiming might be reasonable. Otherwise, delaying benefits generally gives you more money in the long run.
Step 3: Consider Your Financial Needs
Do you need income now due to job loss or other reasons? Then early claiming might help. But if you can cover expenses from other sources, waiting boosts lifetime income.
Step 4: Use SSA Tools and Professional Advice
Use official calculators and consult with financial planners or retirement experts. AARP offers a useful Social Security calculator and guidance to tailor decisions to your situation.
Step 5: Factor in Family and Survivor Benefits
If you have a spouse, delaying benefits may increase survivor income, important for married couples to consider.
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FAQs About AARP Report Reveals Why More Americans Are Claiming Social Security Early
Q1: Can Social Security really run out of money?
No. Social Security is funded by payroll taxes. The Trust Fund reserves will get depleted around 2034-35 if no action is taken, but the program will still pay about 80% of benefits from incoming taxes.
Q2: What happens if I claim early?
You get smaller monthly payments—about 30% less if you claim at age 62 instead of your full retirement age.
Q3: Should I always wait until 70 to claim?
Waiting until 70 maximizes your monthly benefit, but individual circumstances like health, finances, and family situation may justify claiming earlier.
Q4: How can I plan to maximize my Social Security benefits?
Learn your full retirement age, estimate your benefits using SSA calculators, and consider speaking with a financial advisor to create a personalized plan.
