Berthoud, Colorado — As Social Security retirement claims rise, many Americans who are reaching retirement age are making decisions influenced by recent economic uncertainties. A notable surge in applications for benefits has emerged, with claims rising nearly 18% from January to May compared to the same period last year.

Experts attribute this increase partly to seasonal trends, which typically see more people applying for benefits as they approach retirement age. However, this year’s numbers have taken a surprising turn, raising concerns among analysts. Jack Smalligan, a senior policy fellow at the Urban Institute, highlighted that such a spike may signal fundamental shifts in retirement planning among older adults.

Individuals typically benefit from delaying their Social Security claims, as monthly payments increase with each year they wait. The decision for some to file earlier than expected is concerning to Smalligan, who questions whether these applicants are simply fast-tracking plans or are making urgent changes to their retirement strategies.

The Social Security Administration identified three primary factors driving this recent wave of claims: a large cohort of retiring Baby Boomers, the implementation of new rules that enhance benefits for some pension recipients, and an uptick in individuals transitioning from spousal benefits to personal benefits. Rising economic anxiety, especially under the current administration, appears to influence many older adults’ decision-making processes.

Bill Armstrong, 62, exemplifies this trend. Residing in Berthoud, he recently opted to file for retirement benefits after experiencing a series of health and employment setbacks. Armstrong’s concerns about potential government changes to retirement age, along with his health struggles, contributed to his decision to apply sooner rather than later.

Another individual, Karen Mccahey of suburban Chicago, also felt compelled to expedite her Social Security claims following shifts in the political landscape. Despite her initial intention to wait until age 70 for a larger monthly benefit, she opted to apply earlier due to worries about the future of healthcare, potential job market volatility, and the lingering impacts of the pandemic.

Financial advisors typically recommend that clients postpone claiming benefits to optimize their long-term financial health, as waiting can lead to significantly higher monthly payments. However, the current climate of uncertainty appears to be driving some individuals to prioritize immediate access to their benefits, regardless of the financial trade-offs.

Social Security’s sustainability remains a critical topic, with lawmakers needing to address long-term funding concerns. While fears of potential changes may spur some to claim benefits early, experts reassured that the system is legally protected and will not vanish without congressional action. Some analysts argue that the prevalent anxiety surrounding Social Security reform may not be justified, as the program maintains a significant level of public and political support.

For those who file for benefits early and later have regrets, there is a window of opportunity to withdraw their claims within 12 months. Although they would need to repay any received benefits, reapplying for a higher amount remains a viable option.

As the economy fluctuates and the workforce evolves, many approaching retirement age find themselves at a crossroads between financial security and immediate access to their earned benefits.