The pros and cons of early social security claims in uncertain times

SALT LAKE CITY — At the age of 62, Americans can start claiming social security benefits, but many people choose to wait a few extra years.

Right now, the Social Security Administration is dealing with a surge in applications, and experts think policy changes and uncertainty about the future of the social safety net could be to blame. Another possible reason, according to experts, is the number of Americans reaching 65 years old. National statistics show more than 4 million ‘baby boomers’ will turn 65 years old in 2025.

Claims this year are up 16% higher than in 2024, and the uptick came during a time of year when applications tend to slow down.

April Reed, an investment adviser, says there are pros and cons to taking social security benefits at a younger age. “People are really starting to worry about how long social security is gonna exist, and it’s in the capacity that it does today,” Reed explained. One of the pros to filing early is that it can reduce the strain on the distributions that you have to take from your retirement accounts.”

So, what are the cons to taking social security earlier? Reed says some of those downsides can include a smaller monthly payment, lower survivorship benefits for a spouse, and potentially needing more income as you age.

Reed also urges people near retirement age to look at their plans with a financial advisor.