In the first half of fiscal year 2025, the US experienced record growth in the number of people claiming Social Security retirement benefits. According to data from the Social Security Administration’s (SSA’s) online retirement application system, retirement claims were up by more than 276,000 from October to April compared with the previous year, with more retirees claiming Social Security earlier.
But claiming Social Security early reduces a person’s monthly benefit and can result in lower lifetime benefits for some retirees, as well as their spouses and dependent children.
Retirement claims are on track to increase by half a million in fiscal year 2025
In fiscal year 2024, the SSA processed 3.4 million claims for retirement benefits via its online retirement claim system, which includes telephone, paper, and in-person claims entered into the online system by SSA staff.
This year, individual claims for retirement benefits are up 13 percent compared with this time last year, an increase of more than 276,000 claims.
Based on previous years, this puts the SSA on track to receive nearly 4 million online retirement claims in fiscal year 2025, an increase of more than 525,000 claims, or 15 percent compared with fiscal year 2024. This would be a significant jump: from 2012 to 2024, claims increased only 3 percent on average each year.
Early data suggest that not only will claims increase this year, but more people could file for benefits earlier than planned. An SSA analysis from late April found that during the first half of the fiscal year, the administration received more early claims from higher earners, especially at age 62, compared with the previous year. It also identified a jump in claims among those ages 71 and older.
At least three factors could play into the increase:
- With the baby boomer generation aging, the share of the US population eligible to claim Social Security benefits (PDF) has expanded. However, the expected growth in eligible adults is not large enough to fully explain the recent surge.
Recently, the SSA improved how it notifies spouses of Social Security beneficiaries that they may be eligible for a higher benefit based on their own work record. It also began implementing the Social Security Fairness Act (SSFA), which increases Social Security benefits for some people who received pensions from work that weren’t covered by Social Security, such as firefighters, police officers, and teachers.
These changes appear to be driving a jump in claims for those ages 71 and older, but they don’t appear to explain increases at younger ages. The Social Security actuaries estimated that changes to spousal notification explained about 50,000 of the additional claims among those ages 71 and older. They also found that among those ages 71 and older, many spouses whose benefit would be affected by the SSFA filed unnecessary retirement claims, potentially because of confusion over the new law.
The actuaries noted they didn’t expect implementation of the SSFA to be a key factor driving overall increases in retirement claims among those ages 62 to 70.
- Earlier this year, the acting commissioner of the SSA noted that changes at the agency—including staffing reductions, new policies, and changes to customer service led by the Department of Government Efficiency—have likely led to fear and confusion among applicants and beneficiaries. This uncertainty is likely contributing to the increase in retirement claiming, the acting commissioner said. Calls to the SSA and in-person visits to field offices have also increased since January.
Claiming benefits early can weaken people’s retirement security in the long term
For decades, Americans have been waiting longer to claim their retirement benefits. The recent increase in claiming early could reverse this long-term trend and ultimately weaken retirement security for seniors who would have otherwise waited to file for Social Security benefits at later ages.
Claiming Social Security benefits earlier than planned can have long-term implications for a retired worker’s retirement security, as well as their spouse, widow, or children. That’s because Social Security benefit levels are adjusted based on when a beneficiary chooses to begin receiving benefits between ages 62 and age 70. These adjustments were originally intended to be actuarially fair given average life expectancy (PDF).
However, those who choose to claim Social Security at age 62 instead of age 67 (the full retirement age for those born in 1960 or later) receive 30 percent less in monthly benefits for the rest of their life. For example, a worker entitled to a benefit of $3,500 a month at their full retirement age of 67 would only receive $2,450 a month if they file at age 62. Similarly, waiting to claim until age 70, instead of 67, can increase a person’s monthly benefits by an additional 24 percent.
Individual circumstances vary, and some people can benefit from claiming early. There are many factors people should consider when deciding to claim benefits (PDF), including how early claiming reduces spousal and survivor benefits. Delaying claiming to receive a higher survivor’s benefit is particularly important to the economic security of older women. Filing later is like purchasing a greater inflation-adjusted annuity for a beneficiary’s lifetime, at a much lower cost than the private market.
Looking ahead, it will be important to monitor whether changes in the SSA’s administrative budget and the public’s trust that Social Security will continue to provide promised benefits will affect the number of retirement claims and when people file. A reversal in the trend toward claiming Social Security benefits later could be especially worrying as Americans live longer, healthier lives but also face more financial uncertainty.
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