Dave Ramsey Says Taking Social Security at 62 Is Actually Smart - But Only If You're in This Group

Determining when to claim Social Security benefits is one of the biggest decisions for millions of Americans as they creep into retirement. Many financial experts often recommend waiting as long as possible to lock in larger monthly checks.

Personal finance personality Dave Ramsey takes a different stance. On his podcast, The Ramsey Show, he has expressed the view that retiring as early as age 62 can make sense for a very specific group of retirees.

In a world with rising costs, staying on track for retirement is a challenge in and of itself. But who benefits from retiring at age 62 and under what financial circumstances? Here's Ramsey's take and why the decision is more nuanced than it sounds.

Dave Ramsey's argument for why early claiming can make sense

Per Ramsey, taking Social Security at 62 can work if you invest the money rather than spend it. He believes that investing early checks could lead to market gains, and these gains may outweigh the larger checks some retirees would receive by waiting until full retirement age (or later).

But this strategy depends heavily on two main things: market returns and discipline. And other experts say this strategy is far from universal, as it may only work under certain financial circumstances.

Why claiming Social Security at 62 usually comes with a major trade-off

After many long years of working, claiming Social Security at 62 may sound tempting. The thought of getting money in their pockets sooner is a relief for many in their golden years. But claiming Social Security comes at a permanent cost.

For people whose full retirement age is 67, claiming at 62 reduces monthly benefits by up to 30%. That smaller check lasts for life, which can reduce your total lifetime benefits. This can have a particular impact on retirees who live well into their 80s or beyond.

The specific group Ramsey says should consider claiming early

Ramsey's advice is aimed at a narrow group: people who are fully retired by 62, have enough savings/income to cover all living expenses, and do not need Social Security to pay monthly bills. 

Benefits could be put straight into investments for those falling in that category. But the strategy isn't always practical if you need the money for everyday expenses.

How investing early Social Security checks could pay off

The logic is straightforward: receiving benefits five years earlier gives retirees more time to invest. The solid returns from investments could offset the smaller monthly checks. But this outcome depends on disciplined investing and favorable market performance, both of which aren't guaranteed over time.

Why earnings may make this strategy risky for many 62-year-olds

A large share of Americans continues working into their early 60s. And for that group of people, early claiming may not be ideal.

Ramsey's strategy isn't straightforward for people who still work. If you claim Social Security before reaching full retirement age (and continue working), your benefits may be withheld if your income is too high. That means many working 62-year-olds are subject to limits, or they could temporarily lose a portion of their benefits.

In 2026, if you're younger than full retirement age (FRA) for the entire year, you can earn up to $24,480 from work without having your Social Security benefits withheld. Above that amount, Social Security withholds $1 in benefits for every $2 you earn over the limit.

For example, let's say you claim Social Security at 62 and receive $2,000 per month, or $24,000 per year. If you also earn $50,000 from your job, you're $25,520 over the 2026 earnings limit. That could result in about $12,760 in Social Security benefits being withheld during the year.

There's a different rule for the year you reach FRA. In 2026, the earnings limit is $65,160, and Social Security withholds $1 in benefits for every $3 earned above that amount. Importantly, this higher limit applies only to earnings received before the month you reach FRA. Once you reach FRA, you can earn any amount without having your Social Security benefits reduced because of your earnings.

The good news is that withheld benefits aren't necessarily gone forever. Social Security generally recalculates your benefit at FRA to give you credit for months when benefits were withheld because you were working.

What other retirement experts say about claiming early

Other retirement experts caution against claiming Social Security benefits too soon because it provides guaranteed lifetime income. Delaying benefits also increases monthly payments down the road, which can provide more financial security later in life. 

Critics of Ramsey's approach note that investment returns are uncertain. Delayed Social Security benefits offer a predictable increase that can help protect retirees against longevity risk.

How to decide when to claim your benefits

To those on the fence, ask yourself: How is your health? What are your income needs? Are you considering life expectancy? Do you plan to keep working? All of these are valid questions to ask yourself before deciding when to claim.

Retirees should also evaluate other sources of savings and their comfort with investment risk. For some, early access to benefits makes sense. For others, waiting may provide greater long-term stability and reduce the stress if you run short later.

Why there's no one-size-fits-all Social Security claiming strategy

There really is no one best time to claim Social Security. It all depends on your individual circumstances, not broad financial advice. A strategy that works for a financially secure retiree may be a poor fit for someone relying heavily on monthly benefits. Factors like retirement savings, health status, work plans, and spending needs all shape the decision. So, personalized planning is essential.

Bottom line

To recap, Ramsey states that claiming Social Security at 62 can make sense for a small group of retirees. Those who benefit are those who do not need them for monthly expenses and can invest their benefits. But for many Americans, taking those senior benefits early means locking in smaller lifetime payments. This isn't ideal at a time when retirement costs (like health care expenses) continue to rise.

One often-overlooked factor is that delaying Social Security can increase a spouse's survivor benefits, which may matter for married couples planning long-term retirement income. Ultimately, there is no blanket rule that applies to everyone. The right claiming age depends on personal finances, work status, health, and retirement goals.

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