Waiting until age 70 to collect Social Security benefits earns you 25 percent more income each month. But, Tara Siegel Bernard reports for the New York Times that more people are taking their Social Security benefits earlier. The Trump administration’s restructuring of the Social Security Administration and the shaky economy are leading people to feel anxious and less secure about their retirement.
Last year, 244,000 people filed for Social Security between the start of the fiscal year and April. This year, 276,000 people filed for benefits, a 13 percent increase. Experts are concerned because, for people in relatively good health, claiming benefits early means giving up a bigger check that could be extremely helpful as you age.
Yes, there are more retirees eligible for Social Security with each passing year. But, that does not explain the increase in people claiming benefits.
Some people do not see their savings as being secure at the moment, with the stock market swinging wildly downwards and upwards. They worry that the Trump administration restructuring at the Social Security Administration, including a reduction in field offices and staff, will make it harder for people to get their Social Security benefits. Or, they don’t feel as good about the economy as they had.
Social Security expects to get four million retirement benefit claims this year, 15 percent more than in 2024. For the last 12 years, the increase in claims was just 3 percent each year.
You can claim Social Security benefits beginning at age 62. But, you give up about 30 percent of your benefits if you don’t wait until your full retirement age, which is now 67 for people born in 1960 or later. For each year you wait after 67, you collect an extra eight percent in benefits, up to the age of 70.
If you can afford to wait to collect benefits, you benefit significantly. Some experts advise people draw down from 401K and other retirement savings rather than file earlier than necessary for Social Security benefits.
