Suze Orman Said If You Do This, You’ll Take a “Costly Cut” to Social Security Benefits

When it comes to claiming Social Security, there are a lot of different opinions out there. Suze Orman, a noted financial expert, shared hers on LinkedIn not too long ago.

The financial expert warned in her post that making a specific decision about claiming Social Security could lead to a “costly cut.” In 2026, this warning carries even more weight as retirees navigate a 2.8% Cost of Living Adjustment (COLA) that is largely being offset by rising healthcare costs. 

Here’s what Orman had to say about the Social Security claiming choice that could end up coming at a big cost. 

Orman warned against making this Social Security move

Orman’s warning was about claiming Social Security at too young of an age. You are allowed to start your benefits as early as 62, but Orman does not think you should do that.

As she explained, full retirement age (FRA) for most people is between the ages of 66 and 67, with the specifics depending on the year when you were born. You can collect the full standard benefit you are entitled to receive if you wait until your FRA. For 2026, the average retirement benefit rose to approximately $2,071, but for many, the “costly cut” is felt immediately through Medicare Part B premiums, which have climbed to $202.90 per month.

However, many people start their checks as soon as they can, even though that’s well before FRA. Orman said that doing this would lead to a “costly cut,” and she’s right. You are hit with early filing penalties if you claim benefits ahead of your FRA. These penalties reduce your monthly check permanently, and for those working while claiming early in 2026, benefits may be further reduced if annual earnings exceed $24,480.

This adds up, and Orman explained your benefits could be worth as little as 70% of your standard benefit. If you claimed at 62 instead of at an FRA of 67, you would face a 30% reduction in your monthly income for life. 

Does this mean you should never claim early?

While Orman warned about the costly cut that comes with an early claim, she did have a caveat to her advice. On her LinkedIn post, she said, “Don’t settle for a reduced Social Security benefit. If you are in good health, the best financial move you can make is to not claim Social Security before you reach your Full Retirement Age. (FRA).”

The “in good health” part of her statement is critical, especially as 2027 COLA projections suggest another significant boost. Waiting until FRA applies these percentage increases to a much larger base amount. However, new 2026 tax laws have introduced a $6,000 deduction for seniors over 65, which may slightly alter the math for those concerned about the tax liability of their benefits.

You should also consider the long-term stability of the program. With the Social Security trust fund now projected to face depletion as early as 2032, some retirees are weighing Orman’s advice against the risk of potential legislative benefit cuts in the next decade. 

The reality is that choosing a claiming age remains a complex decision involving health, spousal benefits, and evolving tax laws. The best option for most people is to work with a financial advisor to determine which strategy makes the most sense for their specific situation.

Editor’s Note: This article was updated to include the 2026 Social Security COLA increase, current Medicare Part B premium costs, the new 2026 senior tax deduction, and revised trust fund depletion timelines.