Monday, August 4, 2025
Anxiety over the future of Social Security is causing more people to claim benefits early.
Between December 2023 and April 2025, claims rose by 13%. This rise cannot be explained solely by the increase in the number of baby boomers reaching claiming age.
Something else is going on. And it’s believed to be something like, “Oh God, don’t wait, the government is going to take away Social Security – apply now!”
In fact, a study by the TransAmerica Center for Retirement Studies found that 72% of respondents are concerned Social Security won’t be there for them.
Insolvency fears aren’t new. Social Security’s actuarial deficit has caused many to claim early.
But fears that the government will somehow cancel or rescind Social Security have accelerated. This is primarily thanks to the so-called Department of Government Efficiency, or DOGE, and its cost-cutting efforts.
But people saw this more as government meddling in the system and “proof” that DOGE could stop Social Security benefits entirely. It can’t, not legally anyway.
Now, service has long been a problem with Social Security. Unfortunately, it seems to be getting worse. Horror stories abound over applications taking months to process and frustration over the inability to speak with someone if there is a problem.
Still, I think delaying benefits is the right strategy for most people, especially high earners.
Uncertainty may prompt people to claim Social Security early, offering some control over the situation. But the math doesn’t lie. Claiming early means lower future benefits.
Why not reduce some uncertainty by locking in a benefit that starts higher and stays higher, even if it means delaying it a few years? It makes even more sense if future benefits will be cut – you’d rather have a higher benefit being cut than a lower one.