Let’s talk about the retirement panic that has folk hitting the Social Security button faster than folks rush to buy Beyoncé tickets. People are claiming Social Security at 62 like the system is about to disappear overnight. All this stress over “What if it runs out?” has folks locking in the smallest Social Security checks of their life, all in the name of FEAR.
Despite growing awareness about the benefits of waiting, roughly 25 to 30 percent of Americans still claim Social Security at age 62, the earliest age allowed. That’s down from nearly 50 percent in the 1990s, but it’s still a significant chunk of retirees locking in reduced benefits for life. This decision is driven by fear—fear that the system might run out, fear of job loss, or fear of dying before they can collect. Others simply don’t have the financial cushion to wait. But here’s the kicker: claiming at 62 can shrink your monthly check by 25 to 30 percent compared to waiting until full retirement age—and even more compared to holding off until 70. That’s a high price to pay for a panic move.
Top 3 reasons people tap into Social Security early:
“The Trust Fund’s running dry!”
Yep, the Social Security Trust Fund is projected to run low by 2033. But even if that happens, 80 percent of benefits will still be paid from payroll taxes. That ain’t broke. That’s a budget cut—not bankruptcy.
“I want my money before it disappears!”
Folks treat Social Security like musical chairs—they don’t wanna be left standing. But this rush to grab it early locks you into smaller checks for life.
“It’s all politics and fraud!”
Between government drama, TikTok finance “experts,” and conspiracy theories on Facebook, people don’t trust the system. But reacting off rumors ain’t a retirement plan—it’s a setup.
The Facts: Waitin’ Pays—BIG TIME!
Let’s talk numbers.
- Claim at 62? You only get about 70 percent of your full retirement benefit.
- Wait until full retirement age (66-67)? You get 100 percent.
- Hold off until 70? You get up to 132 percent of your benefit.
That’s like turning a $1,000 check into $1,320—for life! Month after month, year after year. That’s a guaranteed 8 percent raise every year you wait past full retirement age.
Now run that over 20-30 years of retirement… that’s hundreds of thousands of dollars left on the table if you claim early.
That’s not just math. That’s strategy.
“But Damon… What If I Die Early?”
I hear this all the time:
“What if I don’t live long enough to enjoy the bigger checks?”
That’s real. But here’s what’s more real: People are living longer. Retirement ain’t a sprint—it’s a marathon. If you live into your 80s or 90s (which many do), claiming early will leave you underfunded when you need that income the most. Plan to live. Not to die.
The Real Risk: Outliving Your Money
Let me say it again: The biggest risk ain’t Social Security running out of money to fund Social Security. It’s you running out of money in retirement leaving you vulnerable at an elderly age.
When you claim early, you’re betting you won’t live long. That’s a dangerous game. You might win that bet—but if you lose, it’ll cost you tens of thousands.
Social Security is guaranteed, inflation-protected money. Why snatch it early and shrink your lifetime benefit just ‘cause you’re scared?
Before you tap into your Social Security early, walk through this checklist:
Know your numbers: Check your Social Security statement. Compare benefits at 62, full retirement age, and 70.
Check your health and family history: Are you in good shape? Longevity in your family? Plan accordingly.
Review your income streams: Got a pension? 401(k)? Rental income? If so, maybe you can afford to wait.
Talk to a pro: Don’t guess. Don’t wing it. Get advice from someone who understands retirement strategy.
Let Strategy Lead—Not Panic
I’m not saying early claiming is always wrong. Life be lifin’. Maybe you got health issues. Maybe you’re unemployed and need the income. If it’s a need, do what you gotta do.
But if you’re claiming early just because your cousin on Facebook said “Social Security gon’ be gone”—stop the madness. Don’t let fear fumble your future.
Delaying Social Security ‘til full retirement age—or better yet, age 70—comes with some heavyweight perks. First off, Medicare doesn’t even kick in until you’re 65, so if you retire early, guess who’s stuck covering expensive health insurance on their own? You. Second, waiting to collect Social Security means bigger checks for life— we’re talkin’ up to 30 to 80 percent more per month depending on when you claim. But the real power play? You get more time to stack your paper. Keep working, and you can still contribute to your 401(k) or IRA. More contributions = more compound growth. And because you ain’t withdrawing from those accounts just yet, that money continues to grow untouched. Translation: Your nest egg gets fatter while your Social Security check gets bigger. That’s what I call a win-win. Waiting ain’t weakness—it’s a wealth strategy.
It’s About Legacy, Not Just Lifestyle
Retirement isn’t just about “surviving.” It’s about peace of mind. Stability. Leaving a little something behind. When you lock in bigger checks, you reduce financial stress on your kids, your spouse, and your future self. This is about freedom, not fear. Legacy, not lack. Strategy, not scarcity.
You worked too hard to let fear cheat you outta what you earned. Social Security isn’t disappearing. It might get adjusted, Yes! But you still have options. Waiting to claim Social Security at full retirement age or at age 70 instead of claiming Social Security early is one of the most powerful ones.
Claiming early outta fear is a gamble. Waiting is a power move. Fear makes you rush. Strategy makes you rich..
BOTTOM LINE:
Waitin’ = Bigger Checks.
Fear = Smaller Bags.
Make smart moves—not scared ones.
(Damon Carr, Money Coach & Tax Pro can be reached at 412-216-1013 or visit his website at www.damonmoneycoach.com)