Dave Ramsey Says Starting Social Security at 62 Can Work - But Only for a Narrow Group

For many Americans nearing retirement, one of the biggest choices is when to start collecting Social Security. A common recommendation from financial professionals is to wait as long as possible in order to secure a larger monthly benefit.

Personal finance figure Dave Ramsey takes a different view. He says claiming Social Security as early as age 62 can be a sensible move for a very specific type of retiree. With living costs still climbing, retirement planning can be difficult enough on its own, and Ramsey’s argument adds another layer to an already complicated decision.

Why Ramsey says claiming early can make sense

According to Ramsey, taking benefits at 62 can be reasonable if the money is invested rather than spent. He argues that starting earlier gives retirees more time for those dollars to grow, and that investment gains could potentially surpass the value of waiting for a larger check later on.

That approach, however, depends on two major factors: steady market performance and the discipline to invest the benefits consistently. Other experts say it is far from a universal strategy and only fits certain financial situations.

The downside of claiming Social Security early

After decades of work, beginning benefits at 62 can seem appealing. Having income sooner can feel reassuring in retirement. But early claiming comes with a permanent reduction in monthly payments.

For someone whose full retirement age is 67, claiming at 62 can reduce benefits by as much as 30%. That lower amount lasts for life, which can significantly cut total lifetime payouts, especially for retirees who live into their 80s or beyond.

The narrow group Ramsey says should consider it

Ramsey’s advice is meant for a limited group: retirees who are debt-free, have a fully funded emergency fund, and do not need Social Security to cover everyday expenses. In that case, the benefits can be invested instead of used for spending. His team also says early claiming may be worth considering for people who have health problems or expect health problems later in retirement.

For people who need Social Security to pay monthly bills, the strategy may not be practical. It also loses much of its logic if the checks are spent instead of invested.

How investing early benefits could help

The idea is simple: receiving benefits five years sooner gives the money more time to compound. If investments perform well, those returns could make up for the smaller monthly payment. But that outcome is not guaranteed and depends on both market results and consistent investing.

Why working retirees may face added complications

Many Americans keep working into their early 60s, and for them, claiming early is not always straightforward. Ramsey’s approach is less useful for people who still have income from a job.

If Social Security is claimed before full retirement age and earnings remain high, benefits may be reduced or temporarily withheld under program rules. That means many working 62-year-olds may not be able to use the strategy cleanly.

What other retirement experts argue

Other retirement specialists warn against claiming too soon because Social Security offers guaranteed income for life. Waiting also boosts the monthly payment later, which can create more financial security in older age.

Critics of Ramsey’s approach point out that investment returns are uncertain, while delayed benefits provide a predictable increase and can help guard against the risk of outliving savings.

How to weigh the decision

People who are unsure should look at several factors, including health, current income needs, expected lifespan, and whether they plan to continue working. Those questions can help clarify whether claiming early makes sense.

Retirees should also consider other savings, their comfort with market risk, and how much financial flexibility they have. For some, early access to benefits is the better fit. For others, waiting may provide more stability and less stress later on.

There is no universal best age to claim

No single claiming age works best for everyone. The right choice depends on personal circumstances rather than broad rules. A strategy that suits someone with strong savings may be a poor fit for a retiree relying heavily on Social Security.

Retirement savings, health, work plans, and spending needs all shape the decision, which is why personalized planning matters.

The bottom line

Ramsey says claiming Social Security at 62 can make sense for a small group of retirees, especially those who do not need the money for living expenses and can invest the benefits. For many others, starting early means accepting smaller lifetime payments.

Another point worth considering is that delaying Social Security can also increase survivor benefits for a spouse, which may matter in long-term retirement planning for married couples. In the end, the best claiming age depends on finances, health, work status, and retirement goals.