Should You Claim Social Security at 62 or 70? Here’s What Dave Ramsey Thinks

When it comes to claiming Social Security, there’s a wide range of ages to choose from. The earliest age you can claim Social Security is 62. But if you want your monthly benefits without a reduction, you’ll need to wait until full retirement age (FRA), which is 67 for people born in 1960 or later.

You’re also allowed to delay your Social Security claim past FRA. For each year you do, until you turn 70, your benefits get boosted by 8%.

Now technically, you can claim Social Security beyond age 70. But since there’s no financial benefit to waiting past that point, 70 is usually considered the latest age to file for Social Security.

Clearly, there’s a huge difference between claiming Social Security at 62 versus 70. Let’s say your monthly benefit at FRA is $2,000. If you file at 62, that benefit will shrink to $1,400. If you wait until 70, it will increase to $2,480.

Dave Ramsey has some strong opinions on when to claim Social Security. And his advice may surprise you.

Dave Ramsey doesn’t think Social Security filers should wait

Dave Ramsey is someone who’s extremely conservative when it comes to debt, and his goal is to empower people to make smart financial decisions. For this reason, you’d perhaps think Ramsey would be inclined to suggest claiming Social Security at 70, since it guarantees larger monthly benefits.

However, Ramsey is actually a huge proponent of claiming Social Security at 62. And there are a couple of reasons for this.

First, he thinks that if people claim benefits at 62 and invest the money, they can grow it into a larger sum than what they’d get by waiting and locking in larger monthly Social Security checks. Also, he says that people who wait too long to claim Social Security risk shorting themselves on lifetime income if they pass away fairly young.

When should you claim Social Security?

Ramsey’s logic makes sense, to a degree. But there are a few flaws in his guidance.

First, some people do live long lives and can benefit financially by claiming Social Security at FRA or later as a result. Also, the reality is that many people who claim Social Security don’t do so in order to invest the money. They do so in order to retire early and use the money to cover essential living costs.

If you’re not sure when to claim Social Security, don’t just listen to what Ramsey has to say. Instead, consider your personal situation.

Some questions to ask yourself include:

• How much savings do I have? The less money you’ve saved on your own, the more you might need larger Social Security benefits.
• How’s my health? If it’s poor, that makes the case for an early claim. If it’s great, you may want to wait.
• What will I do with the money? If you’re inclined to invest it, then filing early could work to your advantage. If you intend to spend it, you may want to wait so you’re able to get more money each month.

There’s no right or wrong answer when it comes to filing for Social Security. The key is to think about your individual circumstances to arrive at the right decision.