Retire early and cash in while you can — or wait and score a bigger monthly check? That’s the divide between two financial powerhouses who have wildly different views on when to claim Social Security.
In a blog post from Ramsey Solutions, the article states that financial expert Dave Ramsey says it makes sense in most cases to take the money early and often. The logic is simple: Social Security benefits don’t outlive you. As the blog explains, “Social Security payments die when you die, so you might as well get all you can get as fast as you can get it.”
If you don’t need the money immediately, the article suggests investing it in growth stock mutual funds to build long-term wealth. “If you take nothing, you get nothing,” it adds — a blunt warning about the risks of delaying and receiving nothing if life doesn’t go as planned.
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The blog also breaks down the math using a chart from CNBC News, showing how much of your full benefit you receive depending on your age. Ramsey Solutions shared the chart to show that:
- At age 62, you receive 70% of your full benefit
- At full retirement age, 67, you receive 100%
- If you wait until 70, you receive 124% — a 76% boost over claiming early
So where does financial guru Suze Orman stand?
In a blog post on her site, Orman urges readers to do the opposite. She writes, “If you are in decent health, there is no better financial move to consider than waiting as long as possible to claim your Social Security benefit.”
She backs her case with life expectancy data: a 65-year-old woman in average health has a 50% chance of living to 88, while a man has a 50% shot at reaching 85. Waiting until age 70 to claim benefits, she notes, leads to monthly payments that are 76% higher than if you started at age 62. Orman also points out that the break-even point — when you start coming out ahead for having waited — is around age 81.
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In dollar terms, Ramsey Solutions gives the example of someone receiving $1,430 per month if they claim at 62, versus $2,535 per month if they wait until 70.
Ultimately, choosing when to claim depends on your health, income needs, and long-term plan. Those who need income earlier or aren’t confident they’ll live into their 80s may find Ramsey’s approach more practical. Those with strong health and a longer runway may benefit from Orman’s strategy.
Either way, the decision is permanent — and there’s no one-size-fits-all. A financial adviser can help you compare scenarios based on your personal data, retirement goals, and how long you expect to live.
Because when it comes to Social Security, it’s not about who’s right. It’s about what’s right for you.
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