Fears about the future of Social Security should not be the primary driving force behind claiming retirement benefits at the earliest possible age of 62, according to experts. While waiting until age 70 offers the largest benefit checks, even delaying claiming by a few months can make a difference. A recent Social Security report has revealed that despite concerns, a strong economy has helped the program. However, if no changes are made, Social Security's trust funds may be depleted within the next decade.

Contrary to popular belief, the depletion of Social Security's trust funds does not mean the program will disappear. Even if funds are depleted, the program will still have revenue from payroll taxes, ensuring that benefits will continue to be paid, albeit potentially at a reduced rate. Despite this, a survey by the Nationwide Retirement Institute found that 75% of adults aged 50 and above believe that Social Security will run out in their lifetime.

Data shows that many retirees do not wait to receive 100% of their earned benefits. The most popular age to claim retirement benefits is 62, with 29% of beneficiaries choosing to claim at this earliest possible age in 2022. However, by doing so, beneficiaries may face a benefit cut of around 30% for not waiting until their full retirement age, typically between 66 and 67 years old. In total, 62% of beneficiaries claimed before their full retirement age in 2022.

Interestingly, only 16% of retirees claimed at their full retirement age, while just 10% waited until age 70, which offers an 8% benefit increase for every year of delay. A Schroders survey revealed that the top reason people claimed early was their concern that Social Security might run out of funds and stop making payments, followed closely by their immediate financial needs.

Psychological factors may also play a role, as research has found that workers often feel a sense of ownership over their earned benefits and want to claim them as soon as possible. Moreover, some individuals may have an aversion to losing money.

Experts unanimously advise delaying the claiming of Social Security benefits unless personal circumstances, such as a lack of income or poor health, necessitate early access. Retirement experts emphasize the value of delaying benefits, as Social Security benefits are adjusted annually for inflation, making them a more attractive option compared to annuities or pensions. These cost-of-living adjustments become significantly higher when applied to larger benefit amounts.

Waiting until age 70 instead of claiming at 62 could potentially increase monthly benefits from $1,400 to $2,480, according to an analysis by the Bipartisan Policy Center. However, even delays of just a few months, such as six, 12, or 18 months, can have a positive impact on retirement security. Experts stress that viewing the decision in months rather than years can make it more feasible for individuals who are unable to wait for a longer period.

In conclusion, while concerns about the future of Social Security persist, experts caution against making early claims based solely on these fears. Delaying retirement benefits, even by a few months, can lead to more substantial monthly payments, ultimately contributing to a more secure retirement.