Financial advisor Dave Ramsey advises taking Social Security at 62 and investing payouts, despite a permanent 30% monthly reduction for early claims.
Financial guru Dave Ramsey recommends claiming Social Security benefits at age 62, accepting a 30% permanent reduction in monthly payouts for those born in 1960 or later. His strategy assumes recipients will invest the funds to outperform delayed, higher benefits.
Full retirement age for those born in 1960 or later is 67, with benefits reduced by about 30% if claimed at 62. Ramsey’s approach targets disciplined investors, though critics argue most retirees lack savings or investment expertise to offset the cut.
The advice contrasts with conventional guidance to delay claims for larger lifetime benefits, particularly for those reliant on Social Security as a primary income source.