Once you’re old enough to claim Social Security, you’ll have to make a tough decision. The earliest age to sign up for benefits is 62. But if you don’t wait until full retirement age (FRA) to take benefits, they’ll be reduced on a permanent basis.
FRA is 67 if you were born in 1960 or later. If your FRA is 67 but you claim Social Security at 62, you’re looking at reducing your monthly benefits by 30% — for life. However, for 2026, claimants must also navigate updated earnings test limits and tax thresholds that can further erode that early check if they are still working.
You’d think financial guru Dave Ramsey would be against claiming Social Security at 62. Ramsey is a huge proponent of helping people attain financial security and steer clear of debt. He’s the type of person you’d think would encourage people not to reduce a major income stream.
Instead, Ramsey actually thinks claiming Social Security at 62 makes sense. But here’s why you may not want to do it.
Why Ramsey supports claiming Social Security at 62
Ramsey’s logic on Social Security is easy to understand. As he says, “In most cases, it actually makes more sense to take your retirement benefits sooner instead of waiting later. Why? Because your retirement payments die when you die.”
Ramsey’s logic is that you might as well make the most of Social Security while you can. If you wait until age 67 to take benefits in order to avoid a reduction but end up passing away at 71, you’ll lose out financially compared to having claimed benefits at 62.
Still, there’s a real danger in following Ramsey’s advice. It’s important to understand that claiming Social Security at 62 is a very risky move under certain circumstances.
The Math Ramsey Ignores: Longevity and Opportunity Cost
While Ramsey suggests claiming early and investing the difference, the math rarely favors the average investor. Delaying benefits from age 67 to 70 yields a guaranteed, inflation-adjusted 8% annual increase. In a volatile market, finding a risk-free investment that consistently outperforms this “delayed retirement credit” is nearly impossible. Furthermore, waiting acts as a vital insurance policy against longevity risk—the very real possibility of outliving your 401(k) or IRA.
Why you may not want to listen to Ramsey
If you have a nice amount of savings for retirement and you expect to use your Social Security as extra income, then you may want to do what Ramsey suggests and take benefits at 62. However, if you don’t have much, or any, retirement savings, then claiming Social Security at 62 is a move you might seriously regret.
The Federal Reserve puts median retirement savings among Americans 65 to 74 at just $200,000. That might seem like a lot of money, but it actually isn’t given that it could need to last for 10 years, 20 years, or longer. In fact, many financial experts recommend a 4% withdrawal rate for retirement savings. If you use that rate, a $200,000 nest egg amounts to $8,000 in annual income.
If that’s your situation, and your only non-Social Security income is $8,000 a year, then you probably can’t afford to reduce your monthly benefits for life by claiming them early. In that scenario, you might need all of the income from Social Security you can get. Additionally, claiming at 62 can impact survivor benefits; if you are the higher-earning spouse, filing early permanently reduces the monthly check your spouse would receive if you pass away first.
This isn’t to say that claiming Social Security at 62 is never a good idea. Before you follow Ramsey’s advice, though, perform a three-point stress test on your health, work status, and spouse’s needs. You may also want to consult a financial advisor to see what they recommend based on your savings, income needs, health, and retirement goals.
Editor’s Note: This article includes new technical analysis regarding 2026 tax thresholds and earnings test limits. We have added a dedicated section on the opportunity costs of the “claim and invest” strategy versus delayed retirement credits. The updated text also provides information on how early filing impacts survivor benefits and longevity risk management.
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