The Real Reason Why So Many People Are Taking Social Security Early

A record number of Americans are claiming Social Security before reaching their full retirement age. According to The Motley Fool, in the first five months of this year, the number of people who applied for Social Security jumped by nearly 18 percent compared to the same period last year.

So if things continue to follow that track, the Social Security Administration will receive almost 4 million retirement claims this year — that’s an increase of more than half a million people!

It appears that the fear of Social Security running out of money is fueling this trend. Almost half of the respondents to a recent survey said they worry the money won’t be there if they wait to claim benefits.

The truth is, Social Security is facing a funding shortfall, and benefits could be cut in the near future. Despite rumors, Social Security is not going broke. As long as people are still working in this country and paying payroll taxes, Social Security has a source of revenue.

However, something does need to be done to ensure the long-term solvency of this important program. The Seniors Trust is committed to improving Americans’ financial well-being through the passage of the Social Security Expansion Act. This landmark piece of legislation will give retirees an immediate benefits increase of about $200 a month, a fair annual cost-of-living adjustment (COLA), increased minimum benefits, and ensure the long-term solvency of the Social Security program.