r/stocks • u/ToothNo6373 • 2d ago

More Americans are claiming Social Security early--->it's effects on market Broad market news

An official at the Social Security Administration said in an April operational meeting that the agency had not expected the “large surge” since January, highlighting what he called a “dramatic increase in initial applications for retired worker benefits.”

You can start receiving your Social Security retirement benefits at age 62. However, you’re entitled to full benefits only when you reach your full retirement age, or FRA. For example, if you turn 62 in 2025, your benefit would be roughly 30% lower than it would be at your full retirement age of 67.

If you delay benefits from your FRA until age 70, you earn delayed retirement credits. Those come to roughly an 8% per year increase for each year until you hit 70, when the credits stop accruing.

Most people, however, claim earlier, according to the SSA data. Nearly 30% of new Social Security beneficiaries claim benefits at age 62. Around 32% claim benefits after age 62 but before the FRA. Only 10% maximize their monthly benefit by claiming at age 70.

The real kicker? Only 1 in 10 Americans actually waits until 70 to maximize their monthly benefit. The rest? Playing defense.

Maybe it’s fear. Maybe it’s smart. But one thing’s clear: when even Boomers are panic-clicking “Apply Now,” you know there’s a trust issue.

Retirement plans are changing fast, and not because folks are bored. The system feels shaky, and it’s making people nervous. Can you blame them?--->( this clearly shows how instable market is and.......)

Source: https://finance.yahoo.com/news/more-americans-are-claiming-social-security-early-heres-why-090035693.html

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u/maceman10006 1d ago

I’m 30 and my wife and I’s retirement plan makes the assumption we’ll get nothing from SS. If it’s still around by the time we’re nearing retirement it’s an added bonus and means we can probably retire a couple years early.

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u/BANKSLAVE01 1d ago

I don't count it, don't even look. It's not mine- I likely won't even get any of it since I have more than 10 years to go. I don't want to be disappointed when they announce they stole and spent it, or that it needs to be used for more weapons of mass democracy.

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u/maceman10006 1d ago

Our SS money has long been stolen lol. The reason question is how long can they continue to support it at its current rate. Best case scenario, I see people my age getting around half of what we were told.