Some Americans are claiming Social Security early, faced with market fluctuations and questions about their future benefits. The Social Security Administration (SSA) reported a “dramatic increase” in new filers since January, with new benefit claims up by more than 15% year-over-year in March.^1,2 In particular, the highest 10% of earners applied earlier than they have in the past, according to SSA data through mid-April.³ The shift comes as people begin to navigate the next wave of financial decisions, rating their happiness with their overall personal finances at a 4.97 out of 10, according to Empower research.

Why some Americans are claiming Social Security early

Waiting longer before starting to claim Social Security generally results in higher monthly payments, but many are choosing to claim now. What’s behind the increase? The SSA says the record number of people turning 65 and retiring is causing the vast majority of new applications, but program experts say anxiety also appears to be playing a meaningful role.^4,5 Economic uncertainty, recent changes to the SSA, and the projected shortfall could all be influencing the public’s decision to claim early.⁶

Read more: Social Security payments are going up in 2025

Deciding when to claim Social Security

When to start claiming Social Security is an important financial decision — one that many don’t take lightly. About three in five workers and more than four in five retirees have thought about how the age at which they claim Social Security can impact the amount they receive, according to a new report.⁷

Americans become eligible to claim Social Security benefits as early as age 62, but the full benefit isn’t available until full retirement age (FRA). For anyone born after 1960, the FRA is age 67.⁸ Those facing cash constraints may benefit in the immediate term from taking Social Security early, but experts argue that waiting is a smarter decision for most in the long-run.

Read more: To collect or not to collect: Does waiting for a bigger Social Security benefit pay off?

Pros and cons of taking Social Security early

Pros:

• Taking Social Security early could provide immediate financial relief for those struggling to make ends meet but will generally result in less money in the long run.
• Those worried about longevity and health concerns could get the most out of their benefits by claiming sooner.

Cons:

• Delaying taking benefits until the full retirement age of 67 typically results in a lifetime payment that’s around 30% higher than taking benefits at 62.⁹
• For each year a retiree delays after their full retirement age, the monthly benefit rises 8% until age 70.¹⁰
• People younger than FRA who claim Social Security and earn more than $23,400 in 2025 could see benefits reduced by $1 for every $2 earned above the limit, plus potentially greater income taxes.¹¹

Read more: Is Social Security income taxable?

Preparing for the future

The uptick in claims puts the SSA on track to receive nearly four million claims for retirement benefits in the 2025 fiscal year, up 15% from 2024, according to the Urban Institute. That’s five times the average increase of 3% annually over the past 12 years.¹²

Empower research shows that Americans are being proactive when it comes to building their retirement fund. More than half of people plan to or currently rely on personal savings and investments, such as 401(k) plans and IRAs, to fund their retirement. And while 72% of Americans say they plan to or already rely on Social Security, only 58% of Millennials and 41% of Gen Z anticipate depending on it.