Govind Tekale
Americans are rushing to claim Social Security benefits at 62 – the earliest possible age – in record numbers. This surge comes despite the substantial financial penalty for not waiting until full retirement age or beyond.
Recent data shows pending Social Security claims reached 580,887 in March 2025, jumping 16% from last year. By mid-May, this number had grown further to nearly 614,158, with approximately 140,000 of them waiting more than 60 days for processing.
“People are really starting to worry about how long Social Security is gonna exist in the capacity that it does today,” explains April Reed, an investment adviser.
Why Americans Are Claiming Early
The Social Security Administration is on track to receive nearly four million claims for retirement benefits in 2025, a 15% increase from 2024. This represents five times the average annual increase of 3% seen over the past twelve years.
Several key factors are driving this rush:
Fear of program instability tops the list. The 2024 Social Security Trustees Report projects that without legislative action, by 2033 the program will only be able to pay 77% of scheduled benefits. Many Americans misinterpret this as the program “running out of money” entirely.
Economic pressures and inflation are pushing those struggling financially to claim early for immediate relief. Additionally, administrative delays at the Social Security Administration, which has cut 7,000 jobs (12% of its workforce), are creating anxiety about securing benefits.
The “Peak 65” demographic wave is also a major factor, with a record number of Baby Boomers reaching retirement age annually. More than 4 million will turn 65 in 2025 alone.
The Cost of Claiming Early
For those born in 1960 or later, claiming at 62 instead of waiting until full retirement age (67) results in a permanent 30% reduction in monthly benefits. This isn’t temporary – it lasts for life.
Research from the National Bureau of Economic Research found that benefits taken at age 70 are 76% higher than those claimed at 62, when adjusted for inflation. Over a lifetime, claiming early can cost a household a median loss of $182,370.
Early claiming also reduces potential spousal and survivor benefits, creating a ripple effect that impacts entire households.
Similar Posts
Service Challenges Compound the Problem
Staffing cuts and office closures are making it harder for seniors to get help. A study by the Center on Budget and Policy Priorities estimates these changes will force seniors to make nearly 2 million additional annual trips to Social Security offices.
“Almost 60 percent, six out of 10 people, are waiting more than four weeks to get into a field office,” explains Devin O’Connor, a senior fellow and study co-author.
For rural seniors or those with mobility issues, these in-person requirements create significant hardship. Half of all seniors must drive at least 33 minutes for a field office visit, while nearly a quarter (about 13.5 million) live more than an hour’s roundtrip drive from their nearest office.
In some states like Arkansas and Wyoming, more than 40% of seniors must make lengthy trips for services. Over 6 million seniors don’t drive, and another 8 million report medical conditions that make travel difficult.
Recent Changes Bring Relief for Some
The Social Security Fairness Act, signed into law in January 2025, repealed the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO). This change benefits about 3.2 million public sector retirees – including police officers, firefighters, and teachers – who previously had their benefits reduced.
By April 11, 81% of retroactive adjustments were completed, with recipients receiving an average payment of $6,710.
Looking Forward
Former Social Security Commissioner Martin O’Malley has warned of potentially serious consequences: “Ultimately, you’re going to see the system collapse and an interruption of benefits.”
Financial experts continue to stress the importance of personalized retirement planning. While early claims make sense for those with health issues or shorter life expectancy, for most Americans, the long-term financial benefits of waiting are substantial. Financial advisors recommend creating a “my Social Security” account to track earnings and benefit estimates, seeking professional financial advice when possible, and staying informed through official SSA resources to avoid falling victim to misinformation.
