In March 2025, a record number of Americans, over 580,000, applied for Social Security benefits. This surge in applications is a result of increasing concerns about the future of the Social Security program. Many people, especially older workers, are rushing to claim benefits early out of fear that the program may not be sustainable.
However, claiming benefits early comes with trade-offs, as it can reduce the lifetime benefits you receive. In this guide, we’ll explain when it might be a good idea to claim now and when it’s better to wait.
The Surge in Social Security Applications
March 2025 saw a 15% increase in Social Security applications compared to the same time last year. This spike reflects the growing anxiety among Americans about the future of Social Security, especially as the program faces potential cuts and administrative changes.
While claiming Social Security early can offer immediate relief, it may not always be the best choice. By waiting longer, you could receive significantly higher benefits in the long run.
Why Are So Many People Claiming Social Security Now?
There are several key reasons why so many people are rushing to claim Social Security benefits in 2025. These include government restructuring, changes to the Social Security Fairness Act, and widespread fears driven by misinformation.
1. Government Restructuring and Workforce Cuts
In early 2025, the Department of Government Efficiency (DOGE), introduced under the Trump administration and led by Elon Musk, implemented major cost-saving reforms. These changes included:
A 12% reduction in Social Security Administration (SSA) staff.
The closure of 47 field offices nationwide.
Slower processing times and more automation.
These restructuring measures created uncertainty, prompting many to apply for benefits while the system still appeared stable.
2. The Social Security Fairness Act
The Social Security Fairness Act, passed in January 2025, repealed two important provisions: the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO).
These provisions had previously reduced Social Security benefits for public workers like teachers and firefighters. By repealing these provisions, many retirees saw their benefits restored, leading to a wave of retroactive payments and early claims.
3. Misinformation and Political Fear
High-profile political figures and misinformation spreading online have led 75% of Americans to believe that Social Security may disappear by 2035. Despite experts dismissing these concerns, many people have chosen to claim benefits early out of fear that the program will no longer be available later on.
When Should You Claim Social Security?
The decision to claim Social Security benefits early or delay your claim depends on your individual situation. Here’s a breakdown of what to consider:
Claiming Early (At Age 62)
The standard age to start receiving Social Security is 66, but you can begin claiming at age 62. While you can start receiving benefits earlier, the monthly payout will be significantly reduced. For example, the average benefit at age 62 in 2025 is around $2,831. If you wait until age 70, the monthly benefit increases to about $5,108.
Claiming early may be a good option if you need the money immediately due to financial hardship or other personal reasons. However, you should keep in mind that claiming early will reduce your total lifetime benefits.
Waiting Until Age 70
If you can afford to wait, delaying your claim until age 70 can lead to a much larger monthly benefit. The longer you wait, the higher your monthly payments will be, which can provide greater financial security in your later years. This may be a smart choice if you’re in good health and expect to live well into your 80s or beyond.
The Risks of Claiming Early
While claiming early offers immediate financial relief, it can be costly in the long run. By starting benefits at age 62, you may lose out on tens of thousands of dollars over your lifetime.
Additionally, claiming early means you’ll face reduced benefits, which can affect your financial security in your later years. Experts recommend delaying benefits whenever possible to maximize your payout.
The 2025 surge in Social Security applications reflects a growing fear about the future of the program. However, acting out of fear may not always be the best financial decision.
While claiming early offers quick relief, waiting until a later age can provide greater long-term benefits. It’s essential to consider your personal financial situation, health, and future plans before deciding when to claim Social Security.
