A record number of retirees are filing for Social Security in 2025, and the surge in these numbers goes far beyond just age. There is widespread uncertainty about the future of the Social Security system, amid staffing cuts and new legislation. According to data from the Social Security Administration (SSA), as reported by CBS News, the number of people filing for benefits has increased by 17% to 1.8 million through May. If this trend continues, filings could reach 4 million by the end of the fiscal year.
Massive Spike in Early Filings Raises Alarm
The surge in this year’s Social Security claims marks a 17% increase over last year, according to the Urban Institute. The early claims are not only a result of a demographic wave but also as a result of rising anxiety about the long-term stability of the retirement system.
“The fear is real and it’s understandable, especially when there’s no serious legislation in place to shore up the system. It feels like spending is on autopilot, with no clear plan to stabilize one of the most important safety nets in the country,” said Kevin Thompson, CEO of 9i Capital Group and host of the 9innings podcast.
Millions of retirees, especially those nearing retirement, are now opting to claim Social Security as early as age 62, even though doing so leads to a significant and permanent reduction of monthly Social Security benefits. By claiming at 62, you risk losing up to 30% as compared to when you wait until the Full Retirement Age (FRA) of 67. By delaying to claim of your benefits until 70, you get an additional 24% increase.
Despite the risk of a permanent loss of a significant amount of benefits, the number of early claims is rising even among higher-income Americans because of the uncertainty surrounding the future of Social Security.
Other Reasons Behind the Surge
Besides the uncertainty surrounding Social Security, there are additional factors driving people to rush to claim their benefits early. According to the Urban Institute, these are the three major reasons:
- A record number of Baby Boomers are hitting “peak 65.”
- The Social Security Fairness Act has been enacted, and this has increased benefits for public servants like firefighters, teachers, and police officers. This is encouraging more claims.
- The SSA has stepped up its outreach, sending letters to spouses and surviving couples advising them that they might receive higher benefits by switching to their own records.
Changes at the SSA That Have Led to Systemic Worries
According to experts, the organizational changes and staffing cuts within the SSA have fueled fear. These changes were fueled by the Department of Government Efficiency (DOGE), which was formed by the Trump Administration to reduce wastage of federal funds and improve efficiency in government agencies. DOGE saw the SSA’s workforce reduce from 57,000 employees to 50,000, which left the agency seriously understaffed.
Frank Bisignano, the new commissioner of the SSA, assured Americans that the changes would not affect service delivery, saying that the agency would maintain its level of service through technology and process engineering. However, this was not the case on the ground as beneficiaries, especially retirees, were forced to travel long distances and wait for more hours to get in-person services.
Still, uncertainty lingers, and many people are worried about their benefits following the interference by Trump and Elon Musk. Max Richtman, president of the National Committee to Preserve Social Security and Medicare, said, “I have attended several town halls around the country, and many people have asked if they should claim benefits early, given Trump and [Elon] Musk’s interference in the system. People are scared, and they’re not sure what to do.”
What the Future Holds for Social Security
Millions of beneficiaries have been uneasy about the solvency of the Social Security program, considering that it is paying more than it is collecting in payroll taxes. According to a forecast by the SSA, this trust fund could be depleted by 2035 if no changes are implemented. As a result, beneficiaries could see their benefits cut by roughly 20%.
“Social Security is projected to pay 100 percent of benefits for at least the next decade. After that, if nothing changes, benefits will drop by about 21 percent, lasting out to around 2090,” Thompson noted.
However, despite the fears, experts like Richtman are advising Americans not to rush into early claims out of fear. “Their concern is understandable. But we advise workers not to claim early out of fear, because filing for Social Security before full retirement age results in a lifetime reduction in benefits,” he said.