FREE NEWSLETTER
I am incensed when I read nonsense posted on social media about social security – “Congress stole the SS funds and never paid it back,” “there would be plenty of money if we didn’t give it to people not eligible” and worse. All nonsense.
Is it worth me getting upset over? It is, because uninformed people believe it and now it appears people are acting on the lies and misinformation they read and hear. They don’t understand that SS can’t go bankrupt or run out of money and that there is a different between SS’s ongoing revenue and the reserve trust. The trust can be depleted, but tax and other revenue would continue to pay (reduced) benefits.
It makes no sense to claim benefits at 62 because you fear SS won’t be there. In fact, if a person believes benefits will be reduced, they should delay to claim a larger benefits.
A Northwestern Mutual study found about 25% of Generation X and 40% of Baby Boomers who aren’t yet eligible said they intend to claim as soon as they turn 62, with fewer than half of Gen X planning to wait until full retirement age.
The Urban Institute (via SSA filing data) found that from January–July 2025, more than 2.3 million people filed for Social Security retirement benefits, up 16 percent from the same period in 2024. Separately, Empower reported the SSA was on track to receive nearly four million retirement-benefit claims for fiscal year 2025 — up 15% from 2024, and about five times the average 3% annual increase seen over the prior 12 years.
An AARP poll points to fears that Social Security is “running out of money” as a driver of the spike starting benefits at age 62 – a poor reason to claim early, since benefits are higher the longer you wait.
Another form of financial illiteracy at its worse.
My wife and I started taking social security the month we first became eligible at 62. Our break-even point is age 79. Regardless, the reason we didn’t wait is that we have plenty of retirement income already…social security is simply travel money. Our goal wasn’t to maximize the net present value of the draw of funds, which is only a guess anyway since you don’t know how long you will live, but to maximize the enjoyment of the healthiest portion of retirement years.
IMO, making disability part of the SS system was a mistake. Originally it only covered disabled individuals between 50 and 64, based on their work history, but Congress couldn’t resist sweetening the benefits.
This is part of the reason the trust fund has been depleted.
My cancer returned for the 3rd time and things looked rough. I immediately started SS at 64 yo even thought this had never been the plan. I was offered disability SS as well since I was/am stage 4 and will remain so. It felt self defeating to accept such a thing. I declined. I also believe each application to disability SS should be evaluated carefully.
I think you have a point. That provision is subject to abuse. The claims tend to rise during poor economic times and high unemployment. But I wouldn’t eliminate it completely.
I had a nephew who was totally disabled from birth with CP. He eventually collected SS on his father’s record.