Suze Orman Has a Stern Warning on Social Security. You Should Listen to Her

As a retiree, you will almost certainly rely on Social Security for at least part of your income, and the single most consequential choice you face is deciding when to start your monthly benefit.

Suze Orman has strong opinions on that question, and her advice could make a meaningful difference to your long-term finances. She has issued a stern warning that every near-retiree should read before filing a claim with the Social Security Administration.

Here is what that warning says, and why it deserves your full attention.

Suze Orman’s stern warning on Social Security

Orman posted her Social Security warning on LinkedIn, writing: “Are you (or a family member) considering when to start claiming your Social Security benefits? It’s crucial to weigh your options carefully. While you can start claiming at 62, keep in mind that your benefit will be permanently lower than if you wait.”

The warning targets a decision that catches many people off guard. Age 62 is the earliest you can claim Social Security retirement benefits, and a large share of retirees start their checks right at that threshold. Some do so because they feel financially ready to retire and assume they need those checks immediately. Others simply do not realize how much an early claim costs them over the long run. Because the government will send checks the moment you qualify, waiting can feel counterintuitive, even when the math clearly favors patience.

As Orman points out, claiming at 62 locks in a much smaller monthly check for life. Every worker has a designated full retirement age (FRA). For anyone born in 1960 or later, that FRA is 67. Claiming before FRA triggers a permanent benefit reduction, while claiming after FRA earns delayed retirement credits that increase your check for as long as you live.

Many people underestimate how large that reduction will be. Very few realize it cannot be undone. Once you lock in an early benefit, you can never recapture the monthly income you gave up by not waiting.

Why Orman’s warning on claiming Social Security deserves attention

An early claim carries serious long-term consequences. Every month you claim before FRA triggers an early-filing penalty: 5/9 of 1% per month for the first 36 months before FRA, and 5/12 of 1% per month for any additional months beyond that. Those penalties compound to a 30% permanent reduction for someone with an FRA of 67 who claims at 62. In concrete dollar terms, a benefit of $2,000 at FRA shrinks to just $1,400 at 62. Real-world SSA data from December 2025 tells the same story: new claimants who started benefits at 62 received an average of $1,335 per month, while new claimants who waited until 67 received an average of $2,521.

Delayed retirement credits reward patience on the other end of the spectrum. Waiting beyond FRA adds 2/3 of 1% per month, equal to 8% per year, and those credits accumulate until age 70. Someone with an FRA of 67 who holds off until 70 would collect a benefit 24% higher than their full amount. A 2022 National Bureau of Economic Research study found that more than 90% of workers between ages 45 and 62 would maximize their lifetime Social Security income by waiting until 70 to claim. Critically, only about 10.2% actually do so, and the NBER researchers estimated that the median household loses $182,370 in lifetime discretionary spending by claiming at a suboptimal age.

Yet early-claiming applications surged in 2025. According to an Urban Institute analysis of SSA data, more than 2.3 million older Americans filed for retirement benefits between January and July of that year, a 16% jump compared with the same period in 2024. Program experts cited economic anxiety, concerns about SSA staffing cuts, stock market volatility driven by changing trade policies, and fears about the program’s long-term finances as key drivers. Notably, even higher-income retirees who have the greatest ability to delay have increasingly been filing at 62, according to the Urban Institute’s senior policy fellow Jack Smalligan.

The stakes are even higher for married couples. An early claim does not just shrink your own check. It also reduces the survivor benefit your spouse could collect if you were the higher earner. By claiming early, you could leave your partner with less guaranteed income for decades.

The broader context makes Orman’s warning more urgent than ever. Social Security’s 2026 cost-of-living adjustment came in at 2.8%, adding roughly $56 to the average retiree’s monthly check and pushing the average monthly benefit to about $2,071. At the same time, Medicare Part B premiums rose to $202.90 per month for 2026, an increase of $17.90 from the prior year’s $185.00. Those premiums are deducted directly from most retirees’ Social Security checks, meaning the net raise many people actually see is considerably smaller than the headline COLA figure suggests. Claiming at 62 locks in a permanently reduced base, and that smaller base is then subject to the same rising costs year after year.

The program’s long-term finances add a further layer of urgency. The Social Security Board of Trustees, in its June 2026 annual report, projects that the combined Old-Age, Survivors, and Disability Insurance trust funds will be depleted by the third quarter of 2034, at which point ongoing payroll tax revenue would cover about 83% of scheduled benefits. Looked at separately, the retirement-focused OASI trust fund is projected to run short sooner, in the fourth quarter of 2032, at which point it could cover only 78% of scheduled benefits. The trustees also reported that the 75-year actuarial deficit for Social Security grew to 4.42% of taxable payroll, up from 3.82% in the prior report, a meaningful deterioration in the program’s long-range finances. The One Big Beautiful Bill Act, a 2025 federal tax package, is identified as a key reason for the acceleration: its provisions are expected to reduce income tax revenue flowing into the trust funds going forward. None of this means benefits would disappear, but it reinforces why locking in the largest possible monthly check matters so much.

Many retirees today outlive the life expectancies that shaped Social Security’s original design. The early-filing penalties and delayed retirement credits were calibrated to even out lifetime benefits for early and late claimers. Because so many people now live well into their 80s and beyond, waiting until 70 typically results in collecting far more over a lifetime. For someone comparing age-70 claiming to age-62 claiming, the break-even point at which cumulative benefits surpass what an early claimer collected typically falls around age 80 to 81, well within reach for a healthy retiree today.

Taking Orman’s warning seriously and holding off until 70 can be one of the most consequential financial decisions you make in retirement. A larger, guaranteed monthly check later in life, when other income sources may have dwindled, provides a cushion that no other retirement asset can fully replicate.

Editor’s note: This article was updated to add the NBER finding that the median household loses $182,370 in lifetime discretionary spending from suboptimal claiming, to incorporate the 2026 Social Security Trustees Report’s disclosure that the program’s 75-year actuarial deficit grew to 4.42% of taxable payroll (up from 3.82%), and to update the break-even age for a 70-vs-62 claiming comparison to approximately age 80 to 81 based on SSA and NBER data.

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