Claim Social Security at 62? Dave Ramsey's Advice Looks Riskier as Benefit Cuts Loom

"The earliest age you can claim Social Security is 62. But you won't get your monthly benefits without a reduction unless you wait for full retirement age (FRA) to arrive. That age is 67 if you were born in 1960 or later. You can also delay Social Security until age 70 for larger monthly checks."

"Ramsey thinks it's wise to claim Social Security at 62. There are two reasons for this. First, as he points out, you only get to collect Social Security as long as you're alive. So the sooner you start getting those checks, the larger your lifetime payday might be, especially if you don't end up living very long."

"Secondly, the sooner you start collecting benefits, the sooner you can invest the money if you don't need it. Waiting several years could mean missing out on a lot of market gains."

Dave Ramsey advocates for claiming Social Security at age 62 rather than waiting until full retirement age (67) or age 70. His reasoning centers on two points: first, claiming early maximizes lifetime benefits if longevity is uncertain, and second, early collection allows unclaimed funds to be invested for market gains. However, this advice faces significant challenges. Many people live into their 80s and beyond, meaning delayed claiming would provide substantially higher lifetime benefits. Additionally, Social Security's precarious financial situation makes early claiming increasingly questionable, as potential future benefit cuts could disproportionately affect those who delayed claiming.

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