In 2025, a noticeable shift is happening among American retirees. More seniors are choosing to claim their Social Security benefits earlier than usual, especially at the age of 62.
This trend is raising eyebrows among financial experts, as it could lead to long-term financial struggles for many retirees. Here’s a closer look at what’s going on, why it’s happening, and what it means for your retirement plans.
Rising Trend: Early Social Security Claims in 2025
According to the Urban Institute, over 276,000 more retirement claims were made between October and April compared to the same period the previous year. A large number of these claims came from 62-year-olds — the youngest age you can start collecting retirement benefits.
While there’s no single reason behind this trend, experts suggest that fear and uncertainty about the future of Social Security might be pushing people to claim early. Some may worry the program will change or run out of funds, so they want to grab what they can now.
Why Claiming Social Security Early Can Be Risky
Claiming Social Security at 62 can feel like a relief if you’re retiring early or worried about running out of money. But it comes with a major catch: your monthly benefit amount drops significantly.
Here’s what happens when you claim early:
If your full retirement age (FRA) is 67 and you claim at 62, your benefits get cut by about 30%.
This reduction is permanent — your checks won’t increase later.
Survivor benefits for a lower-earning spouse can also be reduced.
With less monthly income, you might run into financial trouble later in retirement, especially if your savings run dry.
Most financial planners suggest waiting until at least FRA, or even later, if you can afford it. The longer you wait (up to age 70), the more you receive in monthly benefits due to delayed retirement credits.
Why Some Seniors Still Choose to Claim Early
In some cases, claiming early isn’t a mistake — it’s a necessity or a smart choice based on personal circumstances. Here are a few examples:
Health concerns: If your health is poor and you don’t expect to live long, it might make sense to claim early.
No surviving spouse: If no one will depend on your benefits after you’re gone, early claiming could work.
Avoiding draining retirement savings: If claiming now helps you preserve your 401(k) or IRA for later years, it might be worth it.
Switching to spousal benefits later: Some people claim early just to get some income now and plan to switch to a higher spousal benefit later.
The key point is planning. Claiming early without thinking it through can cost you in the long run.
Delaying Could Mean More Money Over Time
Many retirees don’t realize that waiting to claim can lead to higher lifetime income. The Social Security system was built at a time when people didn’t live as long. Now that people are living longer, delaying benefits often means you’ll get more total money over your lifetime.
In fact, studies show that around 70% of retirees could get more if they waited. That’s a major reason why financial advisors warn against claiming too soon — especially out of fear.
Think Before You Claim: Smart Retirement Decisions Matter
Claiming Social Security early isn’t always a bad idea, but it’s a decision that should be made with care. Don’t let panic or uncertainty push you into a quick decision. Take time to think about:
Your health
Your family situation
How much you’ve saved
Whether you’ll need your benefits to cover everyday expenses
Talk to a financial advisor if you’re unsure. A well-thought-out plan now can help you avoid stress later — and maybe even boost your lifetime income.
While more seniors are choosing to claim Social Security early in 2025, this move could backfire for many. Taking reduced benefits at 62 can create long-term money problems, especially if retirement savings are limited. However, in certain cases, early claiming makes sense.
The most important thing is to make an informed decision based on your personal situation. Social Security is one of your biggest retirement assets, so use it wisely to ensure a financially secure future.
