Why Dave Ramsey Encourages Retirees To Collect Social Security at 62

Deciding when to claim Social Security is one of the most important retirement
choices you’ll make. While many experts recommend waiting to receive full or
even maximum benefits, some argue there are good reasons to claim earlier.

Financial expert Dave Ramsey is among those who see potential in filing at 62,
the earliest age you can claim. But his strategy isn’t just about taking money
early. It hinges on what you do with it.

Why Ramsey supports claiming early

Ramsey’s view is based on investing. If you start receiving Social Security at
62 and invest every bit of it, the gains could outpace what you’d receive by
waiting until your full retirement age, which is 67 for anyone born in 1960 or later.

His argument? You could potentially grow your early payments by placing them
into a high-performing mutual fund. Over time, those investments might generate
more income than you’d gain by waiting for a larger monthly check.

But this strategy isn’t risk-free. Market performance isn’t guaranteed, and
losses could leave you worse off. With that in mind, here are some reasons why
early filing could still make sense.

Find Out: 13 moves seniors could benefit from but often forget about.

You need the money now

Many people simply need the income. During the Great Recession, about 36% of
eligible men and 39% of women filed for Social Security as soon as they turned
62.

If you’re struggling to cover essentials or job opportunities are limited,
claiming early could provide much-needed financial relief.

You have health concerns

If your health is poor or your life expectancy is shorter than average, claiming
at 62 could allow you to receive more total benefits over your lifetime.

While delaying benefits until age 70 increases your monthly amount, it usually
takes until around age 80 to break even compared to filing at 62. If you don’t
expect to live that long, waiting might not pay off.

You want to stop working or physically can’t continue

Some people are ready to retire at 62, not just financially but physically.
Workers in physically demanding jobs may struggle to continue as they age. 

Claiming early could be the bridge you need to exit the workforce without
depleting other savings.

You want to pay off debt

Debt is a heavy burden for many retirees. At the end of 2025, household debt in the U.S. reached a record $18.8 trillion, according to the New York Fed.

Claiming early could give you the cash flow to pay down debt and reduce
financial stress, especially if high-interest payments are eating into your
budget.

Downsides to keep in mind

While claiming early can be helpful, it’s not without drawbacks.

Your monthly benefit will be permanently lower

The Social Security Administration (SSA) applies a reduction for each month you
claim benefits before your full retirement age. These lower payments continue
for the rest of your life.

Cost-of-living adjustments will be smaller

Each year, Social Security benefits receive a cost-of-living adjustment (COLA).
But if your base benefit is smaller because you claimed early, your annual COLA
increases will be smaller too.

Over decades, this difference adds up and could impact your long-term financial
security.

You’ll face a temporary penalty if you keep working

If you work while receiving Social Security before reaching full retirement age,
you could face a temporary penalty. In 2026, the SSA deducts $1 from benefits
for every $2 you earn over $24,480.

The good news is that once you reach full retirement age, these withheld
benefits are gradually returned in the form of higher monthly payments.

Bottom line

Claiming Social Security at 62 could make sense if you need income now, are in
poor health, or want to invest the money wisely. But it’s not the right move for
everyone.

The decision comes down to your personal financial situation, health, and
retirement plan. Talking to a financial adviser can help you make the most
informed choice for your future.

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