Filings for retirement benefits from October 2024 to April increased by 276,572 from the same period in fiscal 2024, with more seniors claiming Social Security at earlier ages, the data show.
SSA reported 350,114 retirement applications in May, compared with 309,246 in the same month in 2024. In January, filings totaled 409,867—an increase of nearly 110,000 from January 2024’s 300,178 filings. In fiscal year 2024, SSA processed a total of 3.4 million retirement claims.
“Claiming Social Security benefits earlier than planned can have long-term implications for a retired worker’s retirement security, as well as their spouse, widow, or children,” the Urban Institute report states.
Citing an example of a worker entitled to a $3,500 monthly benefit at the full retirement age of 67, the Urban Institute report states that this person would receive only $2,400 a month if they filed at age 62. Waiting to claim until age 70 would increase monthly benefits by 24 percent.
Glen Hendrick, a financial adviser at Old North State Wealth Management in Wilmington, North Carolina, told The Epoch Times that some of his clients have opted to take benefits early due to health concerns.
“They feel that they need the benefits earlier, as they worry they might not live long enough to make it to the ‘break even’ point of taking them later,” he said.
Hendrick said that those who may have a substantial investment portfolio may also choose to apply for benefits prior to the full retirement age.
“Most people don’t consider this perspective—they assume that having ample investment assets means they should wait until age 70 to receive the maximum benefit,” he said.
“However, when applying a discount rate to Social Security benefits, a dollar today is worth more than a dollar tomorrow.”
For this group, he noted, taking benefits at age 62 or 67 is the better option.
“An increasing number of Americans have become eligible for Social Security, while at the same time, the ratio of workers paying into the program per retiree has decreased,” the organization warns.
The growing senior population is being blamed for putting pressure on the program. According to the organization’s website, there were 43 million people aged 65 and older in 2010, and that number increased to 59 million in 2024. At the same time, the number of workers contributing to the program dropped from 2.9 coverage workers per beneficiary in 2010 to 2.7 in 2024.
“Even if those trust funds are depleted, Social Security will still be funded by ongoing payroll taxes—enough to cover about 75 to 80 percent of scheduled benefits,” Hendrick said.
“Congress has a range of options to close the gap—whether that’s through tax adjustments, benefit formula changes, or raising the retirement age, and we’ve seen similar reforms in the past.”
The Peterson Foundation recommends several options for closing the gap, including changing the payroll tax rate or broadening the taxable base. Other options include eliminating the Social Security tax cap. Currently, workers pay Social Security tax on the first $168,600 of income. Reducing initial benefits for high earners has also been suggested.
“As a financial advisor,” Hendrik noted, “I encourage clients to plan conservatively, diversify their income sources for retirement, and not rely solely on Social Security.”
