The number of people filing for Social Security typically increases each year amidst population growth and as more individuals reach retirement age. However, there has been a significant jump this year, likely driven by economic concerns, not just demographics.
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So far this year, claims for retirement benefits are up 13% compared to the same time last year and for all of fiscal year 2025, the number of online retirement claims is on pace to hit 4 million — up 15% from last year, versus a 3% average increase from 2012 to 2024, according to the Urban Institute. Part of this trend involves an increase in people filing for Social Security early, including at age 62 when you can first start taking benefits. Below are why people are claiming early and whether you should, too.
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People Are Facing a Lot of Uncertainty
“There is a great deal of national anxiety about the future of Social Security and Medicare that has grown in urgency since the beginning of 2025. People are seeing in the news and across social media a great deal of information about the future solvency issues for both programs, potential benefit cuts, possible increases in eligibility ages and the growing demand for these programs driven by an aging population,” said Chris Orestis, president of Retirement Genius.
“For many people this year, they are feeling like they want to get ahead of the storm and elect to start their benefits at the earliest age possible in fear that if they wait the program could be drastically different or even gone,” he said.
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Another reason could be that more people are experiencing tighter budgets and want that extra income now, rather than several years later.
“Whether this was an early retirement, reduced income later in their career or simply the desire to meet increased expenses due to inflation, this all outweighed the option to wait for a higher benefit amount. If someone found themselves in a cash flow crunch, dollars now would likely win out over dollars later,” said Urban Adams, wealth manager at Dynamic Wealth Advisors.
However, just because many new people are filing for Social Security, that doesn’t mean you should follow the herd, as it depends on your situation.
Determining When To File for Social Security
Although it might seem safer to file for Social Security now, you could be doing more damage in the long run.
“People who elect to take their Social Security benefit at 62 are locking in the lowest monthly benefit they are entitled to for the rest of their lives — and for many they are doing so driven by fear. If a person were to wait until the age of 70 to start collecting benefits they would be collecting almost twice as much compared to starting at 62,” Orestis said.
“But the psychology of the moment is fear and mistrust about the future because of all the negative headlines we are seeing. The future solvency of Social Security is a cause for concern, but electing to start benefits at a younger age and lower amount is being driven by emotion for many people more than by reason,” he added.
Zoom Out To Take a More Level-Headed Approach
“It’s important for anyone considering filing to take their entire financial plan into consideration. That will mean taking into consideration current and future cash flow needs, longevity or health issues and other resources — savings, investments, pension — that could help meet monthly expenses,” Adams said.
If you can find ways to make your current cash flow work while delaying Social Security, that can greatly improve your future cash flow. But if you have concerns such as regarding your life expectancy, you might prefer the certainty of claiming benefits early. There’s a lot to weigh and family considerations also come into play.
“It’s also important to consider if the potential filer is married and their spouse is eligible for benefits as well. Taking these and other considerations into account when considering filing early should go a long way in helping one feel confident that they made an informed decision,” Adams explained.
For some, that might mean solutions like having one spouse file early while the other waits, such as if that’s for a higher-earning spouse who can maximize benefits by delaying them. However, others might find that it’s not about strictly optimizing every dollar.
“If filing early helps relieve stress related to current expenses, avoiding that stress could be worth a great deal of peace of mind,” Adams added.
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This article originally appeared on GOBankingRates.com: Why More People Are Claiming Social Security This Year — Should You?
