You’ve Been Told to Avoid Social Security at 62. Dave Ramsey Says That’s Wrong

You've probably heard the same advice repeated for years: don't claim Social Security at 62 so you can maximize your senior benefits.

The logic sounds convincing. Waiting until full retirement age, or delaying even further to age 70, means a larger monthly check for the rest of your life. For retirees worried about outliving their savings, delaying benefits is often considered the smartest financial move.

Personal finance educator Dave Ramsey has pushed back on the idea that claiming Social Security at 62 is always a mistake. His view challenges conventional retirement planning and makes sense for some retirees. Here's what you need to know about claiming Social Security at 62 and whether this approach is right for you.

What Dave Ramsey actually says about claiming at 62

Ramsey doesn't argue that everyone should take Social Security early. Instead, he emphasizes that retirement income decisions should prioritize certainty, simplicity, and freedom from debt. From that perspective, claiming at 62 can be a smart choice for seniors with low expenses and the ability to invest the excess money.

While you'll forfeit the guaranteed increases in monthly benefits by claiming early, you may come out ahead by investing the money into a diversified portfolio. Over the last decade, the S&P 500 has returned an average of 13.5% per year, excluding dividends, and the 30-year average annual return is 10.4%, including dividends. Returns over both timeframes exceed the 8% boost in Social Security benefits you'll receive by waiting past full retirement age. However, stock market returns aren't guaranteed and involve risk, so your decision should factor in your risk tolerance versus the guaranteed payout.

Taking Social Security benefits early and investing what you don't need can avoid the pressure to generate higher market returns in your 70s and 80s.

Why this view conflicts with standard retirement advice

Traditional retirement planning focuses heavily on math. If you delay Social Security beyond your full retirement age, your benefit grows by about 8% per year until age 70, according to the Social Security Administration. On paper, delaying benefits can result in significantly higher lifetime income, especially if you live into your late 80s or beyond.

Many planners also assume retirees can comfortably rely on investment growth to bridge the income gap while waiting. That assumption doesn't hold true for everyone. Market volatility, sequence-of-returns risk, and emotional stress can undermine even well-funded plans.

When claiming Social Security at 62 can make sense

Claiming at 62 may be a rational choice if your personal circumstances align with certain realities:

• Health concerns or shorter life expectancy. If you wait until a later date, you may not receive any deposits or only a few. On average, you have to live until almost age 79 before you break even by waiting until full retirement age versus claiming at age 62.
• Limited retirement savings. Workers with small balances in their IRA, 401(k), and other savings accounts may need Social Security benefits right away to pay their monthly bills.
• Low tolerance for market risk. Market volatility can disrupt the best-laid plans for retirees. A large drop in the early years of retirement can substantially impact how much you can withdraw from retirement accounts. Claiming Social Security benefits early relieves some of that pressure and allows your investment balances to recover, helping you avoid selling shares at low prices.
• Need for cash flow stability. Social Security checks provide a reliable income that seniors count on. While you'll receive a smaller check than if you waited, having peace of mind may be worth it for some retirees.

When delaying benefits may still be the better option

Delaying Social Security can still be powerful if you:

• Expect a long lifespan based on health and family history. If your family tends to live longer, you'll come out ahead by waiting. On average, estimates say the breakeven point on waiting to full retirement age is 78 years and 8 months. For every year you live past that age, you'll earn even more than those who took Social Security early.
• Have sufficient savings to avoid drawing down investments early. Many seniors count on alternative sources of retirement income so they can delay filing for Social Security. While some of these withdrawals can trigger higher taxes, a strategic approach can minimize your taxable income and long-term finances.
• Want to maximize spousal or survivor benefits. Spouses are generally considered for both their own benefit and eligible spousal benefits when they file, receiving the larger of the two amounts. If your spouse has a limited work history or much lower wages, their benefits could be significantly impacted if you claim Social Security at 62.
• Are comfortable with market fluctuations. Your portfolio may fluctuate in value, but if you're comfortable with how that may impact your withdrawals from retirement and brokerage accounts, you can delay filing for Social Security and let your benefits max out.

Larger benefits later in life can act as longevity insurance, especially as healthcare and long-term care costs rise.

Why age 62 is so controversial

Age 62 is the earliest age at which you can claim Social Security benefits. However, claiming them early permanently reduces your benefit by up to 30% compared to waiting until full retirement age.

That massive reduction is why financial advisors typically discourage filing for Social Security early. But while people feel strongly about both sides of this decision, it isn't just a financial one. Your personal finances, lifespan, and appetite for risk all factor into this decision. And while you may expect to live for many years, the decision on when to file for Social Security forces you to weigh today's certainty against tomorrow's potential income.

Bottom line

There is no universal rule that fits every retiree. The Dave Ramsey advice highlights something often missing from the conversation: peace of mind matters just as much as mathematical optimization. Before deciding which camp you fall into, you need to understand the trade-offs clearly. Claiming Social Security at 62 or delaying until a later date is a personal decision. The best choice is the one that fits your health, finances, and comfort with risk. Analyze your options with your spouse, trusted friend, or a licensed professional to choose the best path for your retirement plan.

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