Fear that Social Security may not be around in future years is apparently leading to more people claiming for Social Security benefits now instead of waiting, such as until they hit full retirement age.
The number of pending Social Security claims for retirement, survivor and health insurance benefits in March 2025 was 580,887, up about 16% from 500,527 a year earlier, according to The Wall Street Journal, which wrote about the trend in an April 26 article.
The surge has continued, with the most recent week’s pending claims reaching 614,158, according to SSA’s April 25 Weekly Operational Report (posted here on YouTube). The report revealed that there have been an additional 250,000 applications for benefits so far this year compared to last year.
At a March 28 SSA Weekly Operational Report meeting (posted here on YouTube), acting Social Security Commissioner Leland Dudek asked whether “fearmongering has driven people to claim benefits earlier because they’re afraid they’re not going to claim benefits at all?”
“Yes. You’re exactly right,” he was told by Ian Taylor, a senior advisor in operations during the meeting.
During the April 25 meeting, it was also explained that there has been a significant deviation from the normal pattern in the number of beneficiaries filing for benefits—something they figured could be due to new claims resulting from the recently implementation of the Social Security Fairness Act and Peak 65—where demographically more than 11,200 Americans are turning 65 every day.
Heightened fears
Americans have long been fearful of Social Security’s tentative financial future, but many of those fears have been heightened recently by reports of the Trust Fund’s pending insolvency—and reports of service cutbacks at the agency under the Trump administration. As the WSJ article noted, unless Congress shores up the retirement program, it is projected to deplete its reserves in 2033, which would trigger a 21% reduction in benefits.
And while President Trump has repeatedly said he will “protect” Social Security, the Trump administration’s claims of widespread Social Security fraud and waste—and implementing policy changes making it more difficult to claim benefits—have put many seniors on edge regarding the program’s future.
The fears are evident in a March Gallup poll, which found that more than 75% of U.S. adults worry a great deal or a fair amount about Social Security, a 13-year high. These fears are responsible for workers expressing a desire to claim benefits earlier—something that could end up costing them dearly.
While most financial advisors recommend waiting as long as possible to claim Social Security in order to maximize benefits received over time, studies find more Americans—about 1 in 3—claim at age 62 than any other age.
According to SSA data, the majority of people (over 60%) claim before their full retirement age (FRA), which is currently between 66 and 67, depending on birth year. Relatively few wait until age 70, even though doing so provides the maximum monthly benefit.
Retirement benefits taken at age 70 are 76% higher, adjusted for inflation, than retirement benefits taken at 62, according to 2022 research from the National Bureau of Economic Research.
That same research found all U.S. workers ages 45 to 62 would benefit from waiting until beyond age 65 to start receiving Social Security retirement benefits, and more than 90% would benefit financially from waiting until age 70 to claim. But only about 10% of workers actually wait until age 70 to claim. People leave a median household loss of $182,370 on the table by not waiting until age 70 to claim.
Of course, claiming earlier means you receive checks for more months or years, while waiting boosts the monthly amount, which often pays off for those living longer in retirement.
SEE ALSO:
• What Experts are Saying About the State of Social Security
• Americans Face Additional $100k Cost to Offset Social Security Insolvency
• Social Security Issues: Flurry of Changes Sparks Confusion
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.