Age 62 is the earliest age to claim Social Security benefits. Claiming before full retirement age results in a permanent reduction of monthly benefits. Full retirement age is 67 for people born in 1960 or later, so claiming at 62 can cut benefits by roughly 30%. Some financial advisors argue taking benefits earlier can yield greater lifetime payouts because payments cease at death, so earlier collection may increase total received. However, reduced monthly income can be unaffordable for many retirees and may risk financial insecurity. Free tools exist to evaluate retirement preparedness and to match retirees with vetted financial advisors.
Once you're old enough to claim Social Security, you'll have to make a tough decision. The earliest age to sign up for benefits is 62. But if you don't wait until full retirement age (FRA) to take benefits, they'll be reduced on a permanent basis. FRA is 67 if you were born in 1960 or later. If your FRA is 67 but you claim Social Security at 62, you're looking at reducing your monthly benefits by 30% - for life.
As he says, "In most cases, it actually makes more sense to take your retirement benefits sooner instead of waiting later. Why? Because your retirement payments die when you die." Ramsey's logic is that you might as well make the most of Social Security while you can. If you wait until age 67 to take benefits in order to avoid a reduction but end up passing away at 71, you'll lose out financially compared to having claimed benefits at 62.
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