Social Security Claims Spiking — 5 Reasons To Follow Suit

There’s no one-size-fits-all approach to claiming Social Security benefits. Retirees face various circumstances that impact when to take benefits. A recent surge in claims may prompt more retirees to ponder whether now is the time to begin payouts.

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The Social Security Administration (SSA) reported an 18% increase in claims between January and May 2025 compared to the same period in 2024, according to NPR. Worse yet, the SSA recently reported trust funds will deplete by 2034, a year sooner than previously stated. Concerned Americans may want to take action now to receive benefits. Here are five reasons why.

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You’re Concerned About the Solvency of Social Security

Waiting to claim Social Security is typically beneficial for most, as monthly benefits increase for each year they wait until reaching 70. That makes spikes in claims concerning. “Because for most individuals, it’s financially smart for them to postpone claiming as long as they’re financially able to,” Jack Smalligan, senior policy fellow at the Urban Institute, said to NPR.

However, if you’re concerned about potential insolvency, that increase may mean nothing. Claiming benefits now, even reduced, may provide peace of mind in receiving monthly payouts. Be aware, though, that if we incur a worst-case scenario, benefits may be reduced once trust funds are drained.

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You Can Grow the Funds Now

Choosing to delay Social Security can be a wise move for retirees not needing the funds. After all, monthly benefits grow until you reach 70. Such people may be high-earners able to live on other resources.

Increases in claims can call that strategy into question. “The analysis in late April by Social Security Administration staff found that the uptick in Social Security claims was especially pronounced among high-earning 62-year-olds,” according to NPR. Taking benefits now may allow you to grow the money more. Work with a financial advisor to identify growth opportunities.

Health Is a Concern for Your Family

Health concerns are often a decision-driver in claiming benefits. Although delaying claims increases benefits, that may be fruitless for retirees currently facing significant medical concerns.

Receiving benefits now may help retirees manage the rising costs of medical care. A reported 22% of people aged 65 and over have medical debt, and 44% of those aged 50-64 have such debt, according to the Kaiser Family Foundation (KFF). Getting monthly payouts now could mean the difference between indebtedness and peace of mind.

You’re Facing Credit Card Debt

Growing credit card debt is a concern at any age. Facing it at retirement is problematic, as there may be less income to repay credit cards. More older Americans are dealing with high-interest debt, with 52% of those aged 50 to 64, 42% of those aged 65 to 74, and 35% of those over 75 facing credit card indebtedness.

While a last resort option, claiming benefits now can help retirees repay debt. Paired with wise money management, receiving monthly payouts now can provide breathing room to manage other responsibilities.

Cost of Living Is a Concern

The rising cost of living is a concern for all Americans, but moreso for retirees, as their ability to earn more is limited. Claiming Social Security benefits now can help financially strained retirees avoid high-interest debt without sacrificing the things they need.

Inflation may not be rising meteorically, but cost of living has dramatically increased in recent years. Taking Social Security now, and before full retirement age, may help strapped retirees dealing with stubborn prices that are stretching their budgets too thin.

Claiming Social Security benefits is a personal decision. In some cases, it may pay to get payouts now. If you do change your mind, you can retract your claim within the first year, though conditions exist. Speak with a financial advisor if you’re trying to decide whether now is the time to receive benefits.

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