As anxiety mounts over the long-term solvency of the Social Security trust funds, a growing number of Americans are rushing to claim their benefits early out of fear that the program will run dry.

However, personal finance expert Suze Orman warns that following this viral advice will lock retirees into a permanent financial penalty that cannot be undone.

“There’s been some chatter on social media lately about Social Security that I think is bad advice,” Orman wrote earlier this month on her website. “The message is that you are better off claiming as early as possible — at age 62 — rather than waiting to collect a larger benefit by starting your checks later. That’s just not good advice.”

About two weeks ago, the Social Security Administration released its 2026 Trustees Report, which confirms that the federal retirement safety net is less than seven years away from reserve depletion, as the Old-Age and Survivors Insurance (OASI) Trust Fund is projected to exhaust its accumulated reserves in the fourth quarter of 2032.

SOCIAL SECURITY HAS LESS THAN 10 YEARS BEFORE RESERVES ARE EXHAUSTED, NEW TRUSTEES REPORT WARNS

Once the reserves are depleted, ongoing tax revenues will cover only 78% of scheduled retirement benefits, according to the report.

According to SSA data, claiming retirement benefits at age 62 remains popular among retirees, though filing early permanently locks in lower monthly benefits.

“For anyone born in 1960 or later, your Full Retirement Age is 67. That is when you are entitled to 100% of your earned Social Security benefit. If you choose to start collecting at 62, you receive just 70% of that benefit — a 30% reduction that is locked in permanently. Claiming early is basically accepting a 30% penalty,” Orman said.

“A woman in average health who reaches age 65 has a life expectancy of 88. That means a 50% probability of still being alive at 88 — still here, still paying bills, still needing income. If she reaches her break-even age of 79, there is a very real chance she has at least another decade or more ahead of her,” Orman said. “Every month past that break-even point, the person who waited is collecting meaningfully more.”

The personal finance expert also pushed back on claims circulating online that filing early secures your benefits before the trust funds run low.

“Current projections suggest that if Congress does nothing, Social Security would pay out roughly 80% of scheduled benefits — a 20% reduction. That is the worst case. And as I have discussed before, Social Security has survived funding challenges before; in the early 1980s, Washington found solutions that did not require beneficiaries to absorb the full cost,” she said.

“If your benefit at 67 would be $2,000, claiming at 62 locks in a $1,400 monthly payment… Now apply the 20% worst-case cut to both. The person who waited until age 67 might see their benefit reduced from $2,000 to $1,600. The early claimer collects around $1,260.”

Orman said there are two exceptions to claiming Social Security early: health issues and the inability to work or draw from retirement savings.

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And the “strongest move,” according to Orman, is waiting until age 70 to claim Social Security benefits.

“If you are married, please have the higher earner wait as long as possible — ideally until 70. The surviving spouse receives the larger of the two benefits. Making that number as large as possible is one of the most important financial gifts you can leave your partner,” Orman said.

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