'Fear mongering' is pushing Americans to claim Social Security early
More than 4 in 5 Americans (81%) are concerned that Social Security funds will be significantly diminished by 2035, according to a recent Atticus survey of 1,000 Americans. This loss of trust in Social Security is the basis for a new report from the Schwartz Center for Economic Policy Analysis (SCEPA), which has published a third policy note in its Tracking the Retirement Crisis series, which examines the urgent challenges facing older Americans in retirement.
“By listening to people,” said Teresa Ghilarducci, Director of the Schwartz Center for Economic Policy Analysis at The New School and the SCEPA Team, “we can look behind these phenomena and understand how Americans are responding to an escalating — but by no means new — retirement crisis. These conversations give us insight into how threats to Social Security in the first months of 2025 affect people in diverse American communities.”
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Approximately 276,000 retirees claimed Social Security in the fiscal year through April 2025, an increase of 13% over the same period in 2024, according to the Urban Institute. Social Security Administration data on pending applications for benefits shows a huge upward swing since September 2024, with another considerable increase since President Donald Trump’s inauguration in late January 2025.
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“Fear mongering has driven people to claim benefits earlier because they’re afraid they’re not going to claim benefits at all,” said acting commissioner of the SSA LeLand Dudek.
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“Analysis in the press points to the President and Elon Musk’s claims of widespread fraud in Social Security, threats against other public programs like Medicare and Medicaid, and the firing of many SSA staff feeding the flames of concern,” said Ghilarducci. Public concern about Social Security is at a 15-year high, according to a Gallup poll.
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“Our research shows that people want to plan for retirement, and they care deeply about the shape of their financial futures,” said Ghilarducci. “However, they are confused about which way to turn and what they can expect from a system in breakdown. At the same time, Americans overwhelmingly support protecting and expanding the Social Security program, a point that lawmakers should pay attention to.”
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From the interviews that SCEPA conducted, “we see that changes to Social Security are only one of many overlapping factors creating anxiety for retirement-age Americans,” said Ghilarducci. “While for some, threats to retirement benefits are their main concern, most see the loss of Social Security in the larger picture of stressors and insecurities.”
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One person interviewed for the report “was hoping to claim Social Security at 70 and receive the full benefit,” said Ghilarducci, “but in 2025, conversations with friends took on a new urgency: ‘Oh my god, don’t wait.’ They’re [the government] going to take it, so you better apply now!”
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There are 63 million Americans between the ages of 50–64 with low savings and often without pensions. “This group is continuing to work for as long as they can, not by choice or to earn extra income, but out of necessity to support themselves and their families,” she said. “The result is that a large number of Americans claim Social Security Benefits while also employed.”
“If lawmakers take action to shore up the Social Security Administration,” said Ghilarducci, “this will help restore trust in retirement benefits and stabilize people’s approach to retirement planning.”
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