A new Urban Institute report shows that in 2025, more seniors are filing early for Social Security benefits compared to 2024. The surge comes amid fears of a looming shortfall that could lead to benefits being cut by 20% as early as 2033 if Congress fails to act.
Why This Matters
Social Security supports more than 70 million Americans, making it the most important income source for retirees. But the program is under financial pressure. Current estimates suggest the Social Security trust fund could run out in less than a decade, forcing broad benefit reductions unless lawmakers step in.
This uncertainty is pushing more retirees to claim benefits earlier, even though doing so means a smaller monthly check for life.
What the Numbers Show
Between October 2024 and April 2025, Social Security retirement claims climbed by 276,000 compared to the same period a year earlier. Many of these new claims came from retirees filing as soon as they turned 62, the minimum age to start collecting benefits.
The Urban Institute report suggests that concerns about the program’s stability are a major driver of this shift.
Why Seniors Are Claiming Early
Financial experts say fear is the main factor. As Kevin Thompson, CEO of 9i Capital Group, explained:
“Many seniors are choosing to file earlier because they fear their benefits could be reduced in the future. By filing now, they believe they’re locking in distributions before any potential cuts.”
But early filing comes with a major trade-off: a 30% reduction in monthly benefits compared to waiting until full retirement age (67), according to The Motley Fool.
Early claiming generally makes sense only in limited cases:
Retiring early without enough savings to cover living costs
Needing income without draining a 401(k) or IRA
Poor health with no spouse eligible for survivor benefits
The Long-Term Impact
Experts caution that while early benefits provide short-term security, they may hurt retirees financially in the long run. Filing at 62 means permanently smaller checks, which can reduce lifetime income significantly.
Thompson noted: “For current beneficiaries, filing before full retirement age comes with a reduction in benefits. That’s the immediate trade-off. But for future retirees, the impact is minimal in the near term—Social Security is currently funded until around 2090.”
Broader Reactions
Alex Beene, a financial literacy instructor at the University of Tennessee, told Newsweek:
“This increase in seniors filing for Social Security benefits at early ages isn’t a surprise. There are too many factors — early retirement, job market shifts, fears of economic uncertainty, and worries over the program’s solvency.”
He added that some retirees think: “I’m going to get what benefits I paid into while I still can.”
What Happens Next
The Social Security shortfall can only be fixed through congressional action. Thompson believes it will take several presidential administrations to fully address the issue:
“This problem has been kicked down the road for years. Social Security isn’t a revenue-generating program — it’s a cost. Legislators will eventually have to deal with it, but chances are it will be left for the next few administrations.”
The rising trend of seniors claiming Social Security early in 2025 reflects growing fears about the program’s long-term stability. While filing early may bring short-term peace of mind, it can also mean a lifetime of smaller checks.
With the trust fund facing depletion by the early 2030s, the future of Social Security rests on lawmakers’ ability — and willingness — to act. For now, retirees must balance immediate needs with the long-term impact of their decisions.
