Concerns over Donald Trump administration policies and the stability of the Social Security system have triggered a sharp rise in early Social Security applications. This trend is fueled by fears over potential future benefit cuts and administrative changes.
According to the Wall Street Journal (WSJ) on April 28, the number of new Social Security applicants nationwide in March 2025 reached 580,887, an increase of about 80,000 compared to March 2024, when there were 500,527 new applicants. The WSJ attributed the increase to several factors, including Trump’s moves to reduce social welfare programs, broader economic instability, and a general sense of future uncertainty. Many applicants are choosing to claim benefits earlier, even if it means accepting reduced monthly payments.
Fearmongering Allegations and Early Applications
At a March 28 meeting, Social Security Administration officials stated that “fearmongering is pushing people toward early filing.”
While President Trump has consistently denied plans to cut budgets for Social Security and Medicare, visible changes—including overall government spending reductions, staff cuts at the Social Security Administration, and altered phone claim requirements—are reportedly influencing retirement-age individuals to rethink their strategies. Data shows that since October 2024, inquiries to Social Security have risen by over 19% compared to the same period the previous year, with website traffic also seeing a significant spike.
Improper Payment Concerns Amplify Anxiety
Although the rate of improper payments remains low at 0.3% of total disbursements, critics argue that the government has amplified fears by highlighting fraud issues. In January 2025, authorities disclosed the recovery of $31 million that had been mistakenly paid to deceased recipients.
Public Confidence in Social Security Hits 13-Year Low
These mounting concerns are reflected in a Gallup poll, where over 75% of adults expressed being “very” or “somewhat” worried about Social Security’s stability—the highest level in 13 years.
Some analysts further suggest that fears over Social Security depletion are contributing to the rush. A recent report estimated that Social Security funds could be exhausted by 2033, potentially leading to a 21% cut in benefits if no corrective measures are implemented.
Experts Warn Against Early Filing Despite Fears
However, experts caution against early claims. Filing early reduces the total benefits received over a lifetime. For example, Christine Banner, a 65-year-old resident of North Carolina, had originally planned to file two years later but opted to claim early this year. As a result, she is receiving about $130 less per month—roughly $1,500 less annually—compared to what she would have received starting at 67. Nevertheless, she said early filing brought her peace of mind.
Experts, however, advise waiting when possible. Social Security benefits increase from the minimum claim age of 62 until 70. Boston University professor Laurence Kotlikoff explained that if a person lives to at least 80, they could receive 76% more in lifetime benefits by starting at 70 instead of 62.
BY BRIAN CHOI [ichoi@koreadaily.com]
