Who benefits most from taking Social Security at 62? Dave Ramsey breaks it down

I do not always agree with the advice Dave Ramsey gives on his show. Many financial situations are complex, and there is rarely a single magic solution that a professional can offer. Opinions and viewpoints will always show through, and it is perfectly fine not to see eye to eye with any pundit on every topic. Still, there is one potentially controversial Ramsey viewpoint that I fully support: taking Social Security at 62, which is the earliest age you can file.

Delayed gratification is often a smart financial choice, and waiting beyond 62 does raise your monthly Social Security benefit. But the value you get from that money is not uniform across every stage of life. The utility — meaning the enjoyment or satisfaction you actually gain — may be considerably greater in your early 60s, even if the dollar amount is smaller. For many people, a modest benefit collected earlier delivers far more real-life value than a larger check arriving years down the road.

Taking Social Security sooner rather than later: why it can make more sense than delaying

Good health is a strong argument for taking the money sooner. Unexpected health issues grow more likely with age, and the ability to travel and stay active tends to peak in the early 60s. Collecting a smaller benefit now, rather than holding out for a larger one later, can simply make better use of those years when you are most able to enjoy them.

The time value of money may also work more in your favor at 62 than you might expect. Even so, this decision is deeply personal, and the right answer depends heavily on individual circumstances. Many people who reach 62 today will live well into their late 80s or 90s. If you are confident your health will hold up, delaying benefits remains a sensible path worth considering carefully.

Either way, you retain real flexibility. You can choose to file or wait, year by year, based on your needs, preferences, or any sudden changes in your life situation.

Now, let us return to Dave Ramsey and explore why he believes taking Social Security at 62 is a smart move. Below, we outline several reasons that support the case for collecting earlier rather than later.

Take the money and invest it

Even if you do not need extra cash today to support your lifestyle, collecting at 62 and investing those payments could deliver a greater long-run return than waiting. Ramsey has argued that even someone who expects to live to 100 can come out ahead by taking the money early and putting it to work in the market. Beyond raw returns, early collection builds a cash cushion that provides real flexibility when unforeseen financial costs arise. Ramsey specifically cites that flexibility as a key reason to start payments sooner.

Investing early Social Security checks in blue-chip stocks or a broad index fund has tangible appeal, particularly for those who can deploy fresh capital during sharp market downturns. The recovery that followed the March 2020 crash illustrates the kind of opportunity that extra liquidity can unlock. For those who prefer a simpler approach, Ramsey suggests a low-cost mutual fund can still outperform the guaranteed increases that come from delaying claims to age 70.

That said, this strategy carries real limitations. Anyone who files early and continues to work faces the Social Security earnings test. For 2026, the SSA withholds $1 in benefits for every $2 earned above $24,480 annually for beneficiaries who remain under Full Retirement Age for the entire year. Beyond lost income, early filers face a three-year gap in healthcare coverage before Medicare eligibility begins at 65. The 2026 standard Part B premium stands at $202.90 per month, a cost that must be factored into any pre-Medicare budget.

A legislative push is also underway that could change those rules. In March 2026, Senator Rick Scott and Representative Greg Murphy introduced the Senior Citizens' Freedom to Work Act, which would repeal the earnings test entirely for pre-FRA beneficiaries. As of mid-2026, the bill remains in committee, but it reflects growing bipartisan frustration with a rule many retirement advocates consider outdated.

Sequence of returns risk adds another layer of complexity. A severe market downturn early in retirement can permanently impair a portfolio, all while the retiree remains locked into a reduced baseline benefit. Filing at 62 also caps potential survivor benefits for a remaining spouse, a household dynamic that individual investment math often ignores. By contrast, delaying claims past Full Retirement Age earns a guaranteed, inflation-indexed increase of roughly 8% per year up to age 70, a risk-free benchmark that market strategies rarely beat with consistency.

There is one additional wrinkle worth weighing carefully. The Social Security Trustees' 2026 annual report, released on June 9, 2026, projects that the Old-Age and Survivors Insurance (OASI) trust fund will deplete its reserves in the fourth quarter of 2032, one quarter earlier than projected in the previous year's report. At that point, continuing payroll tax revenue would cover only about 78% of scheduled benefits unless Congress acts. The Bipartisan Policy Center notes that depletion would translate to a benefit cut of roughly 22% for all recipients. That tightening timeline has given some analysts fresh reason to argue for claiming benefits earlier rather than counting on a full payout years down the road. Worth noting: the 2026 Trustees Report attributes part of the worsening outlook to lower projected immigration and to tax provisions in the One Big Beautiful Bill Act, which reduced income tax revenues flowing into the trust funds. It is an evolving risk that every prospective early filer should weigh alongside the traditional break-even analysis.

For context, the Social Security Administration projected the average monthly retirement benefit for 2026 at $2,071, following the 2.8% cost-of-living adjustment announced last October. At a 22% haircut upon depletion, that average check would shrink by roughly $455 per month, a loss that underscores just how consequential the funding gap could become for retirees who depend heavily on the program.

On balance, Ramsey's position is clear: take Social Security early, invest the proceeds, and treat the program as one piece of a larger retirement plan rather than its foundation. If you value investment opportunity and financial flexibility, and you can accept the market risk that comes with putting those checks to work, claiming at 62 deserves serious consideration.

The bottom line

As with most topics in personal finance, there is no single right answer. Do not act on Ramsey's advice without doing your own research and consulting a financial advisor who can assess your specific situation, concerns, and goals.

If you want more cash to invest through your 60s and place a premium on flexibility, Ramsey's case for taking Social Security at 62 is one of the more compelling arguments he has made. Just make sure the full picture, including healthcare costs, earnings test limits, spousal implications, and the program's long-term funding outlook, is part of your thinking before you file.

Editor's note: This article has been updated to reflect the June 9, 2026 Social Security Trustees Report finding that the OASI trust fund is now projected to deplete its reserves in Q4 2032, one quarter earlier than the prior projection, at which point 78% of scheduled benefits would be payable. The update also incorporates the Bipartisan Policy Center's estimate that depletion would amount to a roughly 22% benefit cut, the SSA's projected average 2026 monthly retirement benefit of $2,071, the confirmed 2026 earnings test threshold of $24,480, the 2026 standard Medicare Part B premium of $202.90 per month, and the March 2026 introduction of the Senior Citizens' Freedom to Work Act, which proposes repealing the earnings test for pre-FRA beneficiaries.

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