Dave Ramsey’s Social Security Advice Could Cost You $182,370. Here’s Why

Dave Ramsey has weighed in on a wide range of personal finance topics, and not all of his guidance holds up under scrutiny. His position on credit scores is one example. His advice on when to claim Social Security is another, and it may be the more consequential one for retirees who follow it. Ramsey has repeatedly pushed the idea of claiming benefits as early as possible, a choice that research shows can permanently cost the typical household six figures in lifetime income.

Here’s what Ramsey actually recommends, and why the math argues against it in the current economic environment.

Ramsey’s Recommended Age to Claim Social Security

In a 2019 podcast, Ramsey recommended claiming Social Security at 62. That is the earliest age at which you can claim retirement benefits, and following his advice means starting your checks well before your full retirement age.

This remains the official position published on the Ramsey Solutions blog. The argument is that since “retirement payments die when you die,” you should collect immediately and invest the proceeds. That logic, however, ignores the guaranteed, inflation-adjusted return that comes from delaying, and the cost of that oversight can reach $182,370 for the typical retiree.

Why Early Claiming Is So Costly

Research from the National Bureau of Economic Research shows that waiting until age 70 is the optimal strategy for more than 90% of Americans. Claiming early produces a median loss of $182,370 in household lifetime discretionary spending. That figure reflects the compounding cost of locking in a reduced base benefit for the remainder of retirement.

For workers born in 1960 or later, full retirement age is now 67. Claiming at 62 rather than waiting until FRA triggers a permanent 30% reduction in monthly benefits. Every future cost-of-living adjustment is then applied to that lower base, so the dollar gap between an early claimer and a patient one widens with each passing year.

The 2026 Numbers

The current economic context makes Ramsey’s one-size-fits-all recommendation look even weaker. The Social Security Administration announced a 2.8% cost-of-living adjustment for 2026, raising the average retired worker’s monthly benefit to $2,071. While that adjustment helps protect purchasing power, it operates on whatever base benefit you locked in at claiming age. A retiree who claimed at 62 sees the same 2.8% applied to a check already reduced by 30%.

Higher earners face additional headwinds. The maximum taxable earnings ceiling rose to $184,500 in 2026, and for those attempting to work part-time while drawing benefits before full retirement age, the earnings test limit stands at $24,480. For every $2 earned above that threshold, the SSA withholds $1 in benefits. That clawback mechanism alone can unravel the cash-flow math underlying the “invest the difference” strategy Ramsey promotes.

The Bridge Strategy and Sequence-of-Returns Risk

A more disciplined approach, often called the “bridge strategy,” has retirees draw down traditional 401(k) or IRA assets to cover living expenses between ages 62 and 70. That keeps Social Security benefits growing at roughly 8% per year in delayed retirement credits, the highest guaranteed real return available to most Americans. The practical payoff is equally important: by not touching Social Security early, retirees avoid being locked into a permanently shrunken check.

Healthcare costs compound the problem for early claimers. Standard Medicare Part B premiums rose 9.7% in 2026, to $202.90 per month, up from $185 in 2025. Because those premiums are deducted directly from Social Security checks for most enrolled beneficiaries, a retiree who claimed at 62 starts from a smaller base and watches a rising mandatory expense consume a growing share of it. The cash available for Ramsey’s hypothetical market investments shrinks accordingly.

Spousal Coordination and the Reset Option

Blanket advice to claim early also tends to ignore the spousal dimension of Social Security planning. A common and often superior approach has the lower-earning spouse claim early to provide immediate household cash flow while the higher earner waits until 70. Because the survivor benefit is tied to the higher earner’s benefit at death, that delay protects the remaining spouse from a sharp income drop later in life.

For those who have already taken Ramsey’s advice and now regret it, there is a limited remedy. Social Security Form 521 allows a one-time withdrawal within the first 12 months of claiming, provided the beneficiary repays all benefits received. That window is narrow, but it exists.

The Trust Fund Question

Fear that Social Security will “go bankrupt” is a common reason people cite for claiming early, and it is also one of the most misunderstood arguments in retirement planning. The 2026 Social Security Trustees Report, released on June 9, 2026, provides the clearest current picture of where the program stands.

The combined Old-Age, Survivors, and Disability Insurance trust funds held $2.56 trillion in reserves at the start of 2026, and the Trustees project those combined reserves remain sufficient to pay 100% of scheduled benefits through the third quarter of 2034. At that point, ongoing payroll tax revenue is projected to cover 83% of scheduled benefits. The retirement-only OASI trust fund faces a tighter timeline, with reserves projected to run out in the fourth quarter of 2032, at which point incoming tax revenue would fund 78% of scheduled retirement benefits.

The Trustees also noted that the depletion timeline accelerated in part because of the 2025 “One Big Beautiful Bill Act,” which reduced the income taxes collected on Social Security benefits, lowering the revenue flowing into the funds. Even so, the program does not face a complete shutdown at any of these dates. Benefits continue, funded by ongoing payroll contributions.

Claiming at 62 out of solvency fear means locking in a permanent 30% reduction today. That self-imposed cut is far larger than the projected 17% shortfall that would arise from combined fund depletion in 2034 without any congressional action. Retirees who panic-claim are trading a certain, deep, and permanent loss for protection against a prospective and partial one.

The evidence argues against the early-claim approach for most households. Guaranteed real returns from delayed benefits, survivor protections for spouses, and the structural resilience of Social Security funding all point toward patience over panic.

Editor’s note: This update corrects the projected Social Security OASI trust fund depletion date to Q4 2032 per the June 2026 Trustees Report, revises the benefit payability figures at depletion to 78% for OASI and 83% for the combined OASDI funds, updates trust fund reserves to $2.56 trillion, and notes that the 2025 “One Big Beautiful Bill Act” contributed to the accelerated depletion timeline.