More than 3 million Americans are expected to become eligible for Social Security benefits this year as they turn 62.
Approximately 3.56 million people are estimated to reach that age in 2025, according to experts who spoke with Newsweek about the potential impact on the Social Security program’s future.
Why It Matters?
As more Baby Boomers (currently aged 61 to 76) retire, the number of people receiving Social Security payments will grow.
This increase could put additional strain on the Social Security Administration (SSA), which is already facing funding challenges that could lead to reduced payments by the mid-2030s.
Key Facts
- Around 3 million Americans are expected to become eligible for Social Security retirement benefits in 2025.
- Americans can start claiming benefits at age 62, but waiting until age 70 results in higher monthly payments.
- In 1963, about 4.1 million Americans were born, and the SSA estimates that 87 percent of those people will reach age 62 this year — about 3.56 million individuals.
- Those eligible this year will have the option to start receiving benefits or delay to increase their monthly payments.
Expert Insights
Kevin Thompson, CEO of 9i Capital Group, advised people to carefully consider their options: “Make the smartest decision for you.
You’ve paid into the system for decades, so maximize what you can get.”
Michael Ryan, founder of MichaelRyanMoney.com, called this wave of retirements a “demographic earthquake.”
He noted that more than 30 million Americans will turn 65 between 2024 and 2030, but two-thirds are financially unprepared.
“More than half of Peak Boomers have less than $250,000 in savings, so they’ll be relying heavily on Social Security, which was only meant to cover about 40 percent of pre-retirement income,” Ryan said.
Alex Beene, a financial literacy instructor at the University of Tennessee at Martin, emphasized the importance of planning:
“The rise in retirees isn’t surprising given the size of the Baby Boomer generation. When it comes to claiming benefits, timing is crucial.
Consulting a financial advisor can help weigh the pros and cons based on your other sources of income.”
What’s Next?
If no changes are made to Social Security, payments could be reduced by 17 percent as early as the mid-2030s.
“Even then, Social Security won’t disappear,” Thompson explained. “The system is expected to last until at least 2090, but payments will likely be lower.”
Thompson also criticized the recent decision to cut 7,000 jobs at the SSA, which could worsen service issues.
“It’s bad timing. When demand increases in any business, you scale up, not down.
Cutting staff now could lead to longer wait times and poorer service for those who have paid into the system their whole lives,” he said.
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