Dave Ramsey’s Social Security Advice is the Opposite of Everything He Stands For

Dave Ramsey has built his reputation in personal finance on a single core principle: protect yourself with savings and stay out of debt. He has applied that philosophy to nearly every corner of daily spending, from car purchases to vacations to housing. He has even gone so far as to suggest that Americans buy a home with cash rather than take on a mortgage.

That makes his position on Social Security all the more striking. When it comes to claiming benefits, Ramsey breaks sharply from his own playbook. The reasoning behind that break deserves a close look.

Why Ramsey’s Social Security advice defies his usual logic

Ramsey’s financial guidance rests on patience and delayed gratification. Save first, spend later. Avoid debt-financed convenience in every category: automobiles, clothing, travel. That is what makes his advice on Social Security so surprising. He tells Americans to claim at the earliest possible age: 62.

For anyone born in 1960 or later, full retirement age (FRA) is 67. Waiting until FRA means collecting 100% of the benefit earned through a lifetime of payroll taxes. Delaying past FRA adds roughly 8% per year, so waiting until 70 pushes the monthly check to 124% of the FRA amount. Filing at 62, by contrast, locks in a permanent 30% reduction. A person with an FRA of 67 who claims at 62 walks away with just 70% of their full benefit, for life.

Yet Ramsey recommends filing at 62 anyway, and he offers two distinct arguments. The first is straightforward: benefits stop when you die, so collecting earlier means more total payments if your lifespan is average or shorter. The second goes further. Ramsey does not suggest grabbing the check and spending it. His recommendation is to start payments at 62 and immediately channel the money into a diversified mutual fund, on the theory that investment returns can outpace the guaranteed 8% annual increase available by waiting. As he has stated on the Ramsey Solutions blog, “You can do a much better job investing that money than the government ever could.”

You may not want to follow Ramsey’s advice

Some of Ramsey’s thinking reflects genuine concern about Social Security’s financial durability, and those concerns are harder to dismiss than ever. The 2026 Social Security Trustees Report, released June 9, 2026, projects that the Old-Age and Survivors Insurance (OASI) trust fund will be able to pay 100% of scheduled benefits only through the fourth quarter of 2032, one quarter earlier than the 2025 report projected. That acceleration was driven in part by the passage of the “One Big Beautiful Bill Act,” which lowered tax liability for Social Security beneficiaries and thereby reduced trust fund revenue. Unless Congress acts, OASI fund depletion would trigger an automatic 22% benefit cut for everyone receiving checks at that time. On a combined basis, the OASI and Disability Insurance trust funds are projected to run dry in 2034, which would produce a smaller 17% cut. The program’s long-run picture has also darkened: the 75-year actuarial shortfall now stands at approximately $30.3 trillion, up from $26 trillion in last year’s report.

That is a real risk worth factoring into any claiming decision. Even so, filing at 62 locks in a smaller check before any future cuts are even applied. The Senior Citizens League’s 2026 Loss of Buying Power study found that Social Security benefits have already lost 13.7% of their purchasing power since 2016, because annual cost-of-living adjustments have consistently trailed real-world retiree expenses in healthcare, housing, and utilities. The 2026 COLA was just 2.8%, and the average beneficiary monthly check now sits at roughly $2,081. Starting with a permanently reduced base only compounds that erosion over time.

The numbers tell the story plainly. Imagine you are eligible for a $2,000 monthly benefit at your FRA of 67. Claiming at 62 pays $1,400 a month (70% of the full amount), waiting to FRA pays $2,000, and delaying to 70 pays $2,480 a month (124%). Those gaps compound over decades. According to AARP, the break-even point where cumulative lifetime benefits from claiming at FRA surpass those from claiming at 62 arrives at around age 78 and 8 months. Anyone who lives into their 80s comes out ahead by waiting. The Social Security Administration’s own life expectancy data puts the average 65-year-old more than 20 years from that birthday. Notably, the SSA discontinued its own online break-even calculator after finding it frequently steered users toward early claiming.

There is also a practical obstacle embedded in Ramsey’s invest-the-checks plan. In 2026, any beneficiary under FRA who is still working and earns more than $24,480 will have Social Security withhold $1 in benefits for every $2 earned above that threshold. That earnings test creates a direct conflict for anyone who has not fully stopped working by 62. To execute the strategy as Ramsey describes it, a retiree generally needs to be completely out of the workforce and financially positioned to cover all living expenses while routing every check into the market. That is a high bar. According to Fidelity data, the average 401(k) balance for workers aged 60 to 64 is around $284,000, but the median sits near $89,000, meaning most workers approaching retirement have far less than the average implies. The share of new beneficiaries claiming at 62 fell to about 26% in 2024, the lowest level in at least 40 years. That said, 2025 saw a surge of roughly 11% in early claims as some Americans rushed to file amid fears about the program’s future and staffing cuts at the SSA.

Your Social Security claiming decision ultimately comes down to several personal factors:

• What your retirement spending needs look like
• How much money you have saved for your senior years
• How healthy or unhealthy you are, and how you expect that to affect your longevity

If Social Security is your primary source of living expenses in retirement, investing those checks is simply not realistic. Ramsey’s strategy of claiming early and channeling the money into equities depends on several conditions that are far from guaranteed. Market performance is the most obvious variable: returns are volatile, especially over shorter timeframes, and a retiree who claims at 62 and immediately encounters a prolonged downturn may find this approach underperforms a straightforward decision to delay. The 8% annual increase from waiting is a guaranteed, government-backed return on a stream of payments that lasts a lifetime. Historical stock returns averaging 7% to 10% annually are a long-run figure, not a promise for any specific retirement window.

Ramsey’s debt-avoidance and savings philosophy serves people well across most areas of personal finance. On Social Security specifically, his advice may fit a narrow set of circumstances: a retiree who is fully debt-free, has substantial savings well beyond a typical 401(k) balance, is genuinely committed to investing every check rather than spending it, and has reasons to expect a shorter-than-average lifespan. For everyone else, running the break-even math against your own health history and income needs is the smarter first step before accepting a permanently reduced benefit.

Editor’s note: This update adds the 2026 COLA figure of 2.8% and the approximate average monthly benefit of $2,081, and clarifies the distinction between the OASI fund depletion date of 2032 and the combined OASDI depletion date of 2034, along with the corresponding 17% cut that would apply under the combined scenario.

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