Over 3 Million People Could Be Eligible for Social Security This Year for First Time

More than 3 million Americans could be eligible to earn Social Security payments for the first time this year.

Social Security benefits become available for retirees once they turn 62, and around 3.56 million people are estimated to turn that age this year in America. Experts told Newsweek what that means for the longevity of the program.

Why It Matters

As more Baby Boomers (currently aged 61-76) retire, the number of Americans earning monthly Social Security benefits is set to increase.

That could cause some budgetary constraints for the Social Security Administration, as the agency is already dealing with a funding shortfall that would see money for full payments run out by the mid-2030s.

What To Know

Around 3 million Americans will likely become eligible for Social Security retirement benefits in 2025.

Americans can begin filing for benefits at age 62, but they will earn higher amounts if they wait longer, up to age 70.

In 1963, 4.098 million people were born in the United States, according to the CDC. Now, 62 years later, those Baby Boomers are eligible to file for benefits this year.

Since the SSA estimates that 87 percent of people born in 1963 are expected to survive to age 62, roughly 3.56 million Americans will reach the SSA minimum retirement age and be able to choose whether to file for benefits this year.

What People Are Saying

Kevin Thompson, a finance expert and the founder and CEO of 9i Capital Group, told Newsweek: “Make sure you’re making the smartest decision for you. It’s your money. You’ve paid into the system for decades so get the most out of it that you can.”

Michael Ryan, a finance expert and the founder of MichaelRyanMoney.com, told Newsweek: “We’re witnessing what I call the ‘demographic earthquake’ of Baby Boomer retirements. Here’s a jaw-dropping stat: over 30 million Americans are turning 65 between 2024 and 2030. And two-thirds of these ‘Peak Boomers’ are financially unprepared.

“Imagine trying to build a house with half the lumber you need. More than half of Peak Boomers have less than $250,000 in savings. That means they’ll be leaning heavily on Social Security, a program originally designed to replace only 40 percent of pre-retirement income.”

Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek: “Over the past few years, we’ve seen an acceleration in the number of Americans eligible for Social Security benefits, and this is of little surprise when you consider the countless members of the Baby Boomer generation who are nearing or at retirement.

“The best advice for accessing Social Security is to always sit down, do your due diligence, and, if needed, bring a financial advisor to discuss different retirement scenarios and the income you’ll have to have. When it comes to accessing benefits, timing plays a big role, as does the other income you’re currently generating, and you may need an additional voice of financial experience to speak to the pros and cons.”

What Happens Next

If nothing changes under the current Social Security rules, beneficiaries could see a 17 percent reduction in payments as early as the mid-2030s.

“But even then, Social Security doesn’t go away. The system is still projected to operate through at least 2090, just not at the current benefit level,” Thompson said.

“One of the worst decisions we’re making right now is cutting staff at the Social Security Administration, right when participation is climbing. That feels like a bad math problem in the making.”

Last month, the SSA announced it would be cutting 7,000 jobs, which could make its operations more limited in the years to come.

“As someone who thinks in terms of business logic, I just don’t get it. In tech or any service-based industry, when demand increases, you scale. You hire. You prepare,” Thompson said.

“But since Social Security isn’t a ‘money-making’ enterprise, they treat it differently. The result? Understaffed offices, long delays, and a worse experience for the people who’ve funded the system all their lives.”