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Americans are rethinking when to retire and claim Social Security as longer lifespans collide with uncertainty over the program’s future.
Social Security could reach insolvency by late 2032 or early 2033, potentially triggering automatic benefit cuts if Congress fails to act. At the same time, Americans are living longer, stretching retirement from roughly 15 years to closer to three decades in some cases, according to Realtor.com.
More than 68 million Americans rely on Social Security benefits as of April 2026, according to the Social Security Administration.
Waiting until age 70 to start collecting Social Security locks in the highest monthly payment, but claiming earlier may help protect against possible cuts.
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“Social Security certainly has a funding problem,” said Evan Mills, a financial analyst at Scholar Advising. “If you claim now, you’re basically making a bet that Congress does nothing about the underfunding problem.”
But delaying benefits carries its own risks.
“You’re also making a bet that you’re not going to live long enough to regret taking a smaller check if Congress does step in and fix the funding problem, which they have plenty of levers to pull,” he added.
Rising costs are adding pressure. Inflation, higher property taxes, insurance and healthcare expenses are also squeezing retirees, particularly those on fixed incomes, Realtor.com reported.
“Many retirees built plans assuming Social Security would cover a larger percentage of their living expenses than it realistically will,” said Elias Friedman, certified financial planner and founder at Kadima Wealth.
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Taxes can further complicate the decision. Claiming benefits early while withdrawing from retirement accounts can trigger so-called “tax torpedoes,” leading to a sudden increase in tax liability.
“It takes a bigger bite out of your Social Security benefits than you would expect,” George Dimov, CPA and founder of Dimov Tax, told Realtor.com.
Regardless, experts say not to make decisions based on fear.
“I advise clients to be careful about making major Social Security decisions based purely on scary headlines,” Friedman said. “I still believe delaying benefits can make a lot of sense for healthy retirees who expect longevity, especially married couples where maximizing the higher earner’s benefit can help protect the surviving spouse down the road.”
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With so many unknowns, experts also say that flexibility is key, whether that means working longer, cutting costs, downsizing or adjusting spending.
“Living longer means finding a place to live in for longer,” Realtor.com Senior Economist Joel Berner told FOX Business in an email. “As we’re seeing, monthly budgets based on social security income may not be as certain as they used to be, so finding a low-cost housing option is essential to planning out a long and happy retirement.”
