A growing number of Americans are choosing to claim Social Security benefits earlier than planned, driven by mounting fears of potential benefit reductions and administrative disruption under former President Donald Trump.
The sharp increase in early claims appears closely tied to sweeping leadership changes at the Social Security Administration (SSA), widespread staff cuts, and restructuring efforts led by the Department of Government Efficiency (DOGE).
Many retirees are acting preemptively, motivated by circulating theories of fraud and alarming narratives about service instability.
According to Moneywise, this environment of uncertainty has created a wave of decisions driven less by planning than by fear and mistrust.
Benefit Claims Rise Sharply in March
According to the SSA’s operational report, pending claims for retirement, survivor, and health insurance benefits increased by 16% in March 2024, rising from 500,527 in March 2023 to 580,887. At a public meeting on March 28, agency officials said that “fear mongering has driven people to claim benefits earlier,” reflecting the growing anxiety around the system’s long-term stability. Website traffic, field office visits, and phone inquiries have all spiked in recent months.
Fear Drives Early Retirement Decisions
Many older Americans are making irreversible financial decisions based on perceived threats. Dan Hietpas, 64, had intended to claim Social Security at age 67 to maximize his monthly benefit. But after watching recent developments, he filed earlier, saying he and his wife Jill have “printed out their earnings records in case their data disappears or becomes inaccurate.” The couple also paid $100 to obtain certified earnings records from the SSA.
SSA officials noted that such actions are unusual:
“Typical year earnings statements is something we would not generally discuss about visitors coming to see us … They’re afraid of our systems going down. That’s what they’re telling us – Said one representative. Many are also visiting offices to verify their identity out of concern for possible data loss.”
Christine Banner, 65, shared a similar story. She had planned to claim benefits two years from now but filed early, fearing that accusations of fraud might be used to justify cuts or service disruptions.
“The couple hopes that if they are already receiving benefits, they won’t face any future reductions,” the report noted.
According to Kathleen Romig, director of Social Security and disability policy at the Center on Budget and Policy Priorities, this climate is “leading people to make decisions based on fear.”
Internal Changes Heighten Public Anxiety
A wave of restructuring has contributed to the tension. The DOGE, under the direction of Elon Musk, has cut SSA staff from 57,000 to 50,000, eliminated two departments, and proposed reducing the number of regional SSA offices from 10 to 4. On its website, DOGE listed 47 federal real estate leases associated with field offices that it aims to cancel.
Although SSA leadership has denied plans for field office closures, Nancy Altman of Social Security Works described these statements as “playing with words” and “deceptive.” Plans to discontinue certain phone-based services were also introduced, then quickly abandoned after public backlash.
These changes have added pressure to an agency that was already chronically understaffed, resulting in longer wait times for callers and temporary website outages.
Political Rhetoric and the Shadow of Privatization
Concerns are not limited to operational issues. Political narratives have further intensified anxieties. Despite public statements from Donald Trump affirming support for Social Security, some lawmakers, such as Senator Bernie Sanders, argue the current administration is laying the groundwork for privatization of the program.
Larry Fink, CEO of BlackRock, suggested giving Americans the option to invest part of their Social Security contributions. Though only a proposal, such statements have raised alarms among retirees who view the current system as a social safety net, not a private investment scheme.
Meanwhile, the Trustees of the Social Security and Medicare trust funds warn that by 2035, the program will only be able to pay 83% of scheduled benefits unless structural reforms are made.
Retirement Decisions Under Pressure
Beyond politics and agency reform, demographics are playing a role. The U.S. is entering a demographic wave known as “peak 65,” with more than 4.1 million Americans reaching that age annually through 2027.
That influx may be naturally driving up claims — but according to a 2021 study from the Center for Retirement Research at Boston College, public confidence plays a significant role: when media coverage highlights financial instability, workers are more likely to file early.
Claiming early can result in a 30% reduction in monthly benefits compared to waiting until full retirement age (between 66 and 67). Delaying past that age increases monthly payments by up to 8% per year until age 70. Still, some prefer certainty now over potentially higher benefits later.
