Social Security Panic Is Premature, Experts Say: Delaying Claims Still Yields Bigger Checks Despite 2033 Trust-Fund Clock

Americans spooked by headlines about Social Security's shaky finances are racing to file claims at 62, even though experts say the math still favors patience.

What To Know: The program's trustees warn that the retirement trust fund could run dry by 2033, after which only 79 percent of scheduled benefits would be paid. Yet financial planners argue that grabbing smaller checks today can backfire if you live into your 80s or 90s.

Fear is real: 64 percent of adults now worry more about outliving their money than dying, with Social Security shortfalls ranking just behind inflation as the top stressor, according to a study by Allianz Life. Benefits replace only about 40 percent of preretirement income on average, and agency staffing cuts and long wait times have eroded public confidence.

See also: Trump Can Either Have His Cake Or Eat It, Economist Justin Wolfers Calls Out President’s ‘Fundamental Incoherence’ On Trade Deals And Tariffs

Still, the incentives to delay are sizable. Claiming at 62 trims monthly checks by roughly 25 percent for those whose full retirement age (FRA) is 66 and by 30 percent for an FRA of 67. Most retirees take the hit anyway, according to the Congressional Research Service. Waiting past FRA boosts benefits 8 percent per year until age 70 — a 24 percent to 32 percent jump that insures against longevity risk.

Delaying is especially valuable for married couples and anyone worried about future inflation shocks, Vanguard researchers find. Meanwhile, Donald Trump has repeated that he "won't cut current retirees' benefits," reassuring older voters even as Congress debates new taxes or modest trims for younger workers.

Bottom line, planners say: unless poor health shortens your horizon, every month you wait buys larger lifetime protection — and that may matter more than beating Washington's next funding fix.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Image via Shutterstock

Read next: Mark Zuckerberg Denies Tilt Towards Donald Trump, Says Big Tech Must Work With ‘Whoever’ Is In Power, Describes Last Decade As ‘Painful Maturation Process’