There is a strange truth about retirement in America. The rules keep nudging full benefits later, yet many people still circle age 62 on the calendar and say, “That’s the date.” Personal finance star Dave Ramsey leans into that instinct. He actually encourages many retirees to start checks at 62 and invest the money. Curious why a debt-hating advisor wants you grabbing government cash early? Stick around and walk through the numbers before you lock in your filing age.
Dave Ramsey’s Big 62 Play
Ramsey treats Social Security as side money, not the main course. He points out that checks stop when you die, so waiting for a bigger monthly amount can backfire if your life is shorter than the actuarial charts predict. His team notes that someone due $1,000 at a full retirement age of 67 would get about $700 a month by filing at 62.
Under that setup, Ramsey suggests you take the smaller check early and invest it. He gives an example where investing $700 a month from age 62 to 77 in growth mutual funds could build roughly $318,000, money your family can inherit instead of losing when your benefit ends. The weird twist is that he even nicknames the program “Social Insecurity” to hammer home how little trust he places in its long-term promises.
The Strange Math Behind Early Checks
Here’s where the government math gets quirky.Anyone born in 1960 or after faces a full retirement age of 67 under current Social Security rule. Claiming right at 62 means taking a permanent 30% haircut, dropping a hypothetical $1,000 full benefit to about $700 for life. That reduction comes month by month, but the cut never goes away.
So early filers trade a smaller monthly check for more years of payments, while late filers roll the dice on getting fewer but larger checks. Ramsey’s argument hangs on the idea that you can put those early dollars to work in the market instead of leaving them on the government’s table.
Who Might Cheer Or Skip Ramsey’s Strategy
Ramsey’s approach lines up with how many people actually retire. A recent survey from Transamerica found the median retirement age is 62, and nearly six in ten retirees left work earlier than planned because of health issues, layoffs, or other surprises. For someone who must stop working, an early check can feel less like a “strategy” and more like a lifeline.
His advice tends to appeal if you
- have some savings or part-time income already
- feel comfortable investing in stock-based mutual funds
- believe future Social Security cuts are possible and want money in your hands sooner
On the other hand, standard guidance still favors waiting, because benefits rise every year you delay after full retirement age, up to about an 8% boost per year until 70. For healthy retirees who expect a long life and prefer guaranteed income over market swings, patience can add real security to later years.
All of that leaves you with a practical takeaway. Your decision has to match your health, savings, risk tolerance, and family needs. Before copying any guru, run your own numbers and compare claiming ages before you decide which trade-off actually lets you sleep at night.
