Concerns about the future of Social Security are prompting more Americans to claim Social Security benefits earlier than planned, even at the risk of collecting smaller monthly checks. Triggered by government cuts to welfare programs and administrative turmoil, retirement decisions are being reshaped across the country.
What Happened: Social Security claims increased to 580,887 in March from 500,527 a year before, according to the Wall Street Journal.
At a March 28 meeting, officials said that "fearmongering has driven people to claim benefits earlier." Layoffs, changing rules, and larger initiatives to cut government spending have generated public anxiety.
President Donald Trump has pledged not to cut Social Security but has moved decisively to reduce federal budgets. "That is leading people to make decisions based on fear," said Kathleen Romig, director of Social Security and disability policy at the Center on Budget and Policy Priorities.
See Also: Dave Ramsey Calls Social Security A ‘-4% Return’ --But This Wealth Expert Says That’s A Dangerous Oversimplification That Could Cost Thousands
Why It Matters: Claiming early leads to lower lifetime payments. Boston University Economist Laurence Kotlikoff pointed out that benefits starting at 70 are "76% higher than at 62." Despite this, many do not want to wait.
"There is no confusion. Trump has been extremely clear: he promised to protect and strengthen Social Security," said White House spokeswoman Liz Huston. She also referred to causes for collecting early, like aging baby boomers and new benefit rules.
A new report from the Center on Budget and Policy Priorities also warns that Trump's immigration policies could deepen Social Security's funding gap by around 11%.
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