I do not always agree with the advice Dave Ramsey gives on his show. Many financial situations are complex, and there is rarely a single magic solution that a professional can offer. Opinions and viewpoints will always show through, and it is perfectly fine not to see eye to eye with any pundit on every topic. Still, there is one potentially controversial Ramsey viewpoint that I fully support: taking Social Security at 62, which is the earliest age you can file.
Delayed gratification is often a smart financial choice, and waiting beyond 62 does raise your monthly Social Security benefit. The value you get from that money, however, is not uniform across every stage of life. The satisfaction and enjoyment you actually gain from a benefit check may be considerably greater in your early 60s, even if the dollar amount is smaller. For many people, a modest benefit collected earlier delivers far more real-life value than a larger check arriving years down the road.
Taking Social Security sooner rather than later: why it can make more sense than delaying
Good health is a strong argument for taking the money sooner. Unexpected health issues grow more likely with age, and the ability to travel and stay active tends to peak in the early 60s. Collecting a smaller benefit now, rather than holding out for a larger one later, can simply make better use of those years when you are most able to enjoy them.
The time value of money may also tilt in your favor at 62 more than you might expect. Even so, this decision is deeply personal, and the right answer depends heavily on individual circumstances. Many people who reach 62 today will live well into their late 80s or 90s. If you are confident your health will hold up, delaying benefits remains a sensible path worth considering carefully.
Either way, real flexibility exists. You can choose to file or wait, year by year, based on your needs, preferences, or any sudden changes in your life situation.
Now, let us return to Dave Ramsey and explore why he believes taking Social Security at 62 is a smart move. Below, we outline several reasons that support the case for collecting earlier rather than later.
Take the money and invest it
| Claiming Age | Monthly Benefit (as % of FRA Benefit) | Pros | Cons |
|---|---|---|---|
| 62 | 70% | – Receive benefits early – Can use income if retiring early |
– Reduced monthly benefit for life – May not maximize lifetime benefits if you live long |
| FRA (66-67 depending on birth year) | 100% | – Full monthly benefit – No reduction for early claiming |
– No early access to funds – Lower than benefits at age 70 |
| 70 | 124% | – Maximized monthly benefit – Ideal for those with longer life expectancy |
– Delay in receiving benefits – May not be optimal for those with shorter life expectancy |
Even if you do not need extra cash today to support your lifestyle, collecting at 62 and investing those payments could deliver a greater long-run return than waiting. Ramsey has argued that even someone who expects to live to 100 can come out ahead by taking the money early and putting it to work in the market. Beyond raw returns, early collection builds a cash cushion that provides real flexibility when unforeseen financial costs arise. Ramsey specifically cites that flexibility as a key reason to start payments sooner.
Investing early Social Security checks in blue-chip stocks or a broad index fund has tangible appeal, particularly for those who can deploy fresh capital during sharp market downturns. The recovery that followed the March 2020 crash illustrates the kind of opportunity that extra liquidity can unlock. For those who prefer a simpler approach, Ramsey suggests a low-cost mutual fund can still outperform the guaranteed increases that come from delaying claims to age 70.
That said, this strategy carries real limitations. Anyone who files early and continues to work faces the Social Security earnings test. For 2026, the SSA withholds $1 in benefits for every $2 earned above $24,480 annually for beneficiaries who remain under Full Retirement Age for the entire year. Beyond lost income, early filers face a three-year gap in healthcare coverage before Medicare eligibility begins at 65. The 2026 standard Part B premium stands at $202.90 per month (plus an annual deductible of $283), costs that must be factored into any pre-Medicare budget.
A legislative push is also underway that could reshape those rules. Senator Rick Scott introduced a Senate companion bill in March 2026, and Representative Greg Murphy followed with the House version (H.R. 8344), titled the Senior Citizens’ Freedom to Work Act, in April 2026. The legislation would repeal the earnings test entirely for pre-FRA beneficiaries. As of mid-2026, both bills remain in committee, but they reflect growing frustration with a rule many retirement advocates consider outdated and counterproductive.
Sequence of returns risk adds another layer of complexity. A severe market downturn early in retirement can permanently impair a portfolio, while the retiree remains locked into a reduced baseline benefit. Filing at 62 also caps potential survivor benefits for a remaining spouse, a household dynamic that individual investment math often ignores. By contrast, delaying claims past Full Retirement Age earns a guaranteed, inflation-indexed increase of roughly 8% per year up to age 70, a risk-free benchmark that market strategies rarely beat with consistency.
One additional wrinkle deserves careful attention. The Social Security Trustees’ 2026 annual report, released on June 9, 2026, projects that the Old-Age and Survivors Insurance (OASI) trust fund will deplete its reserves in the fourth quarter of 2032, one quarter earlier than projected in the prior year’s report. At that point, continuing payroll tax revenue would cover only about 78% of scheduled benefits unless Congress acts. The Bipartisan Policy Center estimates that depletion would translate to a benefit cut of roughly 22% for all recipients. The same report reveals that the program’s 75-year actuarial deficit has grown to 4.42% of taxable payroll, up from 3.82% in the previous report. The Trustees attributed part of the worsening outlook to lower projected immigration and to tax provisions in the One Big Beautiful Bill Act that reduced income tax revenues flowing into the trust funds. It is an evolving risk that every prospective early filer should weigh alongside the traditional break-even analysis.
For context, the average monthly Social Security retirement benefit stood at approximately $2,083 as of May 2026, following the 2.8% cost-of-living adjustment that took effect in January. At a 22% haircut upon trust fund depletion, that average check would shrink by roughly $458 per month, a loss that underscores just how consequential the funding gap could become for retirees who depend heavily on the program.
On balance, Ramsey’s position is clear: take Social Security early, invest the proceeds, and treat the program as one piece of a larger retirement plan rather than its foundation. For those who value investment opportunity and financial flexibility, and who can accept the market risk that comes with putting those checks to work, claiming at 62 deserves serious consideration.
The bottom line
As with most topics in personal finance, there is no single right answer. Do not act on Ramsey’s advice without doing your own research and consulting a financial advisor who can assess your specific situation, concerns, and goals.
If you want more cash to invest through your 60s and place a premium on flexibility, Ramsey’s case for taking Social Security at 62 is one of the more compelling arguments he has made. Just make sure the full picture, including healthcare costs, earnings test limits, spousal implications, and the program’s long-term funding outlook, is part of your thinking before you file.
Editor’s note: This article has been updated to reflect the current average monthly Social Security retirement benefit of approximately $2,083 (as of May 2026, per CNBC), up from the SSA’s January 2026 projection of $2,071 following the 2.8% COLA. The legislative section was corrected to note that Senator Rick Scott introduced the Senate companion to the Senior Citizens’ Freedom to Work Act in March 2026, while Representative Greg Murphy introduced the House version (H.R. 8344) in April 2026. The Trust Fund section now includes the 2026 Trustees Report finding that the program’s 75-year actuarial deficit expanded to 4.42% of taxable payroll, up 16% from the prior year’s report. The 2026 Medicare Part B annual deductible of $283 was also added.
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