More retirees are looking to start collecting Social Security benefits early because of uncertainty over the future of the program.
Though President Donald Trump has long said he would “protect” Social Security benefits, his baseless claims about widespread fraud, his staffing cuts and his policy changes that make it harder to claim benefits have put some older adults on edge.
According to The Wall Street Journal, the number of pending Social Security claims for retirement, survivor and health insurance benefits in March was 580,887, up from 500,527 a year earlier.
At an internal meeting, acting Social Security Commissioner Leland Dudek blamed the increase on “fearmongering,” saying retirees were “afraid they’re not going to claim benefits at all,” according to a video posted by the agency on YouTube.
Searches for “how to claim Social Security” on Google in March were also at the highest level that they have been since tracking began in 2004.
But the decision will have long-term costs for recipients.
Workers eligible for Social Security can begin receiving benefits at age 62, known as the early eligibility age, but their benefits will be 25% less than if they waited until the full retirement age of 66. And those who wait beyond that can get 8% more in benefits each year until age 70.
Financial planners recommend waiting as long as possible to begin receiving benefits and collecting early only if you do not expect to live past 80 or need the monthly checks immediately because of financial circumstances.
Still, the Congressional Research Service found that the majority of Americans claim their benefits before age 66, although the proportion has gone down in recent years. Nancy Altman, president of the Social Security Works advocacy group, told USA Today that worried retirees should wait to collect benefits and instead get involved. “The correct response is not to claim benefits before you’re ready,” she said, “but to contact your members of Congress and make sure they do their jobs, including conducting oversight so that benefits are not disrupted.” Subscribe here to receive weekly updates on and expert insight into the key issues and figures defining Trump’s second term.
Ryan Teague Beckwith is a newsletter editor for MS NOW.
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