Fear of Social Security Collapse Is Driving a Rush to Claim at 62

Full analysis

A sharp spike in early Social Security filings appears to be driven by misinformation about the program's finances rather than sound planning. Data from the Urban Institute, using SSA filing records, shows that more than 2.3 million people filed for retirement benefits from January through July 2025 — up 16% from the same period in 2024. Empower reported the SSA is on track for nearly four million retirement-benefit claims in fiscal year 2025, up 15% from 2024 and roughly five times the average annual increase of the prior 12 years.

A Northwestern Mutual study found about 25% of Generation X and 40% of Baby Boomers not yet eligible plan to claim as soon as they turn 62, and an AARP poll points to fears that Social Security is 'running out of money' as a key driver. HumbleDollar contributor R Quinn argues this is a costly mistake: while the Social Security trust fund reserve could be depleted, ongoing payroll tax revenue would still pay reduced benefits — not zero. More importantly, claiming earlier locks in permanently lower monthly payments; if anything, someone who genuinely fears a future benefit cut should delay to lock in the largest possible monthly amount before any reduction takes effect.