Why Are So Many Americans Claiming Social Security Early?

A striking wave of Americans is claiming Social Security earlier than they had planned, and research suggests fear about the program’s future is playing a major role.

Urban Institute researchers Jack Smalligan and Chantel Boyens found that retirement claims jumped by more than 276,000, or 13%, during the first seven months of fiscal 2025 compared with the same period a year earlier. The increase put claims on track to approach 4 million for the year, roughly 525,000 more than in 2024 and far above the average 3% annual growth recorded from 2012 through 2024.

The particularly revealing detail was who was claiming. Social Security Administration data showed an increase in early claims among higher earners, especially people taking benefits at 62. Urban Institute said demographic growth from aging baby boomers could not fully explain the surge.

An AARP survey provides a major clue. Among Americans 50 and older who had claimed, or were considering claiming, earlier than planned, 49% said media reports that Social Security was “running out of money” influenced them. Administrative concerns also mattered, with 20% citing reduced staffing or access to services and 17% reporting difficulty reaching the agency.

The Fear Has a Real Financial Problem Behind It

The anxiety is not entirely imaginary. The 2026 Social Security Trustees report says the Old-Age and Survivors Insurance trust fund is projected to run out of reserves in the fourth quarter of 2032. At that point, continuing income would cover about 78% of scheduled OASI benefits. The combined retirement and disability funds are projected to remain solvent until 2034, when about 83% of scheduled benefits could be paid under current law.

But “running out of money” does not mean Social Security suddenly disappears. Payroll taxes and other incoming revenue would continue. The issue is the gap between that income and benefits scheduled under current law.

That’s an important distinction because fear can turn a future financing problem into an immediate claiming decision.

Urban Institute noted that changes at the SSA, including staffing and customer-service changes, have contributed to “fear and confusion,” according to the agency’s then-acting commissioner. Researchers also found that other developments, including the Social Security Fairness Act and improved spousal notifications, explain some increased claims among older beneficiaries, but not the surge among younger claimants.

Claiming Early Can Cost Retirees for Decades

The financial trade-off can be substantial. For someone born in 1960 or later, full retirement age is 67. Claiming at 62 can permanently reduce the monthly benefit by as much as 30%, according to the SSA. Delaying after full retirement age increases the benefit, with credits continuing until age 70.

Urban Institute gives a stark example: someone entitled to $3,500 a month at 67 would receive about $2,450 by claiming at 62. That is a $1,050 monthly difference, or $12,600 a year, before considering future adjustments. Waiting until 70 could raise the monthly amount another 24% compared with claiming at 67.

That does not make delaying universally appropriate. Health, employment, household finances, life expectancy, taxes, and survivor benefits can all change the calculation. Some retirees genuinely need the money at 62.

The deeper concern researchers identify is different: people who could afford to wait may be making an irreversible decision because they fear the system will vanish, potentially sacrificing a larger inflation-adjusted lifetime income in response to a solvency problem that remains subject to future legislation.

This story was originally published by Men’s Journal on Sep 27, 2026, where it first appeared in the News section. Add Men’s Journal as a Preferred Source by clicking here.