Personal finance expert Suze Orman has cautioned Americans against claiming Social Security benefits early due to fears that the program will run out of funds. Orman addressed recent social media trends advising individuals to claim benefits at age 62, warning that this approach results in a permanent reduction in monthly payments that cannot be reversed [1].
The Social Security Administration's 2026 Trustees Report, released about two weeks ago, projects that the Old-Age and Survivors Insurance (OASI) Trust Fund will exhaust its reserves in the fourth quarter of 2032. After this point, ongoing tax revenues are expected to cover only 78% of scheduled retirement benefits, implying a potential 22% reduction in payouts if Congress does not intervene [1].
Orman emphasized that claiming benefits at age 62, while popular, locks retirees into receiving just 70% of their full benefit—a 30% permanent reduction. For those born in 1960 or later, full retirement age is 67, at which point they are entitled to 100% of their earned benefit. Orman illustrated the impact with an example: if the full benefit at 67 is $2,000, claiming at 62 would result in a $1,400 monthly payment. If the worst-case 20% cut occurs, the person who waited until 67 would see their benefit reduced to $1,600, while the early claimer would receive around $1,120 [1].
Orman also noted that Social Security has survived previous funding challenges, such as those in the early 1980s, and that Congress has historically found solutions that did not require beneficiaries to absorb the full cost. She argued that the fear-driven rush to claim early is not justified by current projections and could harm retirees' long-term financial security, especially given increasing life expectancies [1].
CONCLUSION
Suze Orman urges Americans not to claim Social Security benefits early out of fear, highlighting the permanent financial penalty and the likelihood of partial benefits even in a worst-case scenario. The expert stresses that waiting can provide greater long-term security, and history suggests Congress may act to address funding shortfalls.