Experts often recommend waiting to claim Social Security benefits, as delaying can increase the amount you receive. However, life is unpredictable, and many people file earlier than the “ideal” time for various reasons.

Why Timing Matters

Eligibility for Social Security retirement benefits begins at age 62, but filing early reduces your payout. If you wait until your full retirement age (typically between 66 and 67), you’ll receive 100% of your benefits. Even better, waiting until age 70 increases your benefits by 8% for every year you delay past full retirement age.

That said, not everyone has the option to wait. Personal circumstances often dictate when people claim their benefits, even if it means reduced payments. According to the Social Security Administration (SSA), nearly 40% of future retirees plan to claim benefits at a specific age as part of their financial strategy. However, 30% say unexpected life events will determine when they file.

Here are the five most common reasons Americans file for Social Security early:

1. Early Retirement is Part of Their Financial Plan

For many people, filing early is a calculated choice tied to their overall retirement income plan.

The SSA explains that early retirement benefits are reduced by 5/9 of 1% for each month you claim before your full retirement age, up to 36 months. If you file more than 36 months early, your benefits are further reduced by 5/12 of 1% per month.

Even with these reductions, some retirees incorporate early Social Security payments into their financial strategy, balancing the smaller monthly checks with other income sources like savings or investments.

2. They Need the Money

Financial pressure is one of the biggest reasons people file early.

According to USA Today, many Americans rely on Social Security to cover urgent expenses because they lack emergency savings or access to affordable loans. Rising costs for essentials like housing, food, and healthcare make it even harder to get by without additional income.

The National Council on Aging reports that 80% of households with older adults—roughly 47 million—are either financially struggling or at risk of economic insecurity as they age. For these individuals, claiming benefits early becomes a necessity.

3. Health Issues

Health problems can force people to claim Social Security earlier than planned.

Serious health conditions like chronic diseases, mental health challenges, or physical limitations may reduce life expectancy or impact quality of life, prompting individuals to access their benefits sooner. The fear of not living long enough to enjoy retirement can be a powerful motivator for early filing.

4. Job Loss

Losing a job, especially later in life, can significantly impact retirement plans.

With a fluctuating economy and rising layoffs, older workers often face challenges in finding new employment. For many, early Social Security benefits act as a financial safety net during periods of unemployment.

Financial advisors recommend creating a plan to prepare for unexpected job losses, but for those caught off guard, Social Security offers immediate relief.

5. Lack of Faith in Social Security’s Future

A growing number of Americans are worried that Social Security may not be available in the future.

According to Nationwide Retirement, 75% of adults aged 50 and older fear Social Security will run out of funds in their lifetime, up from 66% in 2014.

While the Social Security Administration reassures that full benefits will be paid through 2037, funding after that may cover only 76% of scheduled payments unless Congress takes action. These concerns lead many to file earlier, fearing they won’t benefit later.

Should You File Early?

Filing for Social Security benefits early can be a lifeline for many, but it comes with trade-offs. While early filing means reduced monthly payouts, it can provide much-needed income during challenging times.

Before deciding when to claim Social Security, consider consulting with a financial advisor. They can help you weigh your current needs against the long-term benefits of waiting.

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