The traditional retirement age of 65 may no longer be a realistic expectation for some Indiana residents.

Economic uncertainty is prompting many retirement-age adults to apply for Social Security while as young as 55, or delay payments until 70, the maximum allowable age to draw benefits.

Last year, more than one in five Hoosiers received Social Security benefits, contributing more than $24 million to the state economy.

AARP Senior Strategic Policy Advisor David John said a significant number of people have to retire earlier than planned due to health issues or a job loss.

“It used to be, the dream was to spend the rest of your life on a golf course, or on a beach with piña coladas, or something similar,” said John. “But increasingly, we are seeing people who are transitioning and maybe working part time for financial reasons.”

John noted that half of retirees go back to work because they crave the social interaction and camaraderie with co-workers. Other reasons include needing something to do other than “just get up and sit around the house,” or seeking a purpose in life.

Indiana’s average monthly Social Security benefit was just over $2,000 in 2024, according to data from Kiplinger.

Baby boomers, the demographic leading the retirement line, are undecided amid the country’s current economic ambivalence and buzz about the future existence of Social Security.

One of those concerns could center on a trust fund or possible changes to Social Security. John suggested that potential retirees should consider delaying taking their benefits.

“It’s a larger benefit for the individual,” said John. “It’s inflation-protected, and of course, AARP is very actively defending Social Security. Even with that kind of concern, an individual is still much better off if they can to delay taking their benefits.

That larger benefit is going to affect spousal benefit levels too, John added.

According to December 2024 data from the Social Security Office’s Old Age Survivors and Disability Insurance department, Marion County has the largest number of benefits in current payment status at nearly 162,000.