When to Start Taking Social Security: Expert Advice for 2025

Why So Many People Jump at 62

Deciding when to take Social Security benefits ranks among the most challenging financial choices you’ll face in your lifetime. Your monthly payment hinges on two critical factors: your lifetime earnings and the age you choose to start collecting benefits.

According to Social Security Administration guidelines, most people become eligible for Social Security at 62, but there’s a significant trade-off. If you want your complete benefit amount without reductions, you must wait until your full retirement age (FRA). For anyone born in 1960 or later, that magic number is 67.

Here’s something interesting though. Wait beyond your full retirement age? You’ll earn delayed retirement credits that increase your monthly payment by 8% for each year you postpone filing until age 70. That’s guaranteed growth in today’s uncertain financial landscape, as confirmed by current SSA regulations.

Despite facing reduced monthly payments of approximately 25-30% below their full benefit amount, millions of Americans file for Social Security benefits the moment they turn 62. This decision puzzles many financial experts, but the reasons make perfect sense when you dig deeper.

Health concerns often drive this choice. Some people face medical issues that make waiting feel risky. Others find themselves pushed into early retirement due to job loss or company downsizing. Life rarely follows our carefully crafted financial plans, and these real-world pressures can’t be ignored.

Many financial advisors consider early filing a costly mistake, pointing to the lifetime benefits left behind. However, one prominent financial expert actually endorses claiming at 62 under specific circumstances.

Dave Ramsey’s Unexpected Take on Early Filing

Dave Ramsey, known for his conservative approach to debt elimination and wealth building, supports claiming Social Security at 62 in certain situations. His reasoning might surprise you, but it’s grounded in practical logic that challenges conventional wisdom.

Ramsey’s perspective is straightforward – you can only collect Social Security while you’re alive.

Consider this scenario: someone who files at 62 and lives until 73 receives 11 years of payments. Meanwhile, someone who waits until 70 but passes away at 73 only collects benefits for three years. The early filer might actually receive more total dollars despite smaller individual checks.

This approach recognizes that longevity risk plays a crucial role in benefit optimization. A common mistake is assuming longer waits always mean more money. The truth is, your total lifetime benefits depend heavily on how long you live after filing, making this a deeply personal calculation.

The Investment Strategy Behind Early Claims

Ramsey’s advice comes with one crucial caveat: you must invest those early Social Security payments rather than spend them on living expenses. This strategy only works if you have sufficient savings and other income sources to cover your daily needs without touching Social Security.

How the Investment Approach Works

The logic follows these steps:

• File for Social Security at age 62 while having other income sources
• Invest the monthly Social Security payments in diversified portfolios
• Allow compound growth to potentially exceed the 8% annual increases from delayed filing
• Maintain this strategy consistently over time

By investing monthly payments starting at 62, you might generate returns that exceed Social Security’s guaranteed growth. You’re essentially betting that your investment performance will outpace the delayed retirement credits, while also gaining immediate access to funds.

Many people find this approach appealing because it gives them control over their money rather than relying solely on government benefits. The key lies in having the discipline and financial knowledge to make it work effectively.

Reality Check for Most Retirees

Unfortunately, Ramsey’s investment strategy isn’t realistic for most Americans approaching retirement. Based on 2024 data from various retirement studies, the harsh reality is that many people file at 62 because they desperately need that income immediately.

Job loss, health crises, or insufficient savings often force early retirement decisions. If you’re in this situation, you’ll likely need every Social Security dollar for basic expenses like housing, food, and healthcare. The invest-your-benefits approach requires financial stability that many retirees simply don’t have.

This creates an ironic situation: those who could most benefit from the investment strategy often don’t need Social Security income urgently. Meanwhile, people who need the money most can’t take advantage of potential investment growth. It’s a classic example of how financial advice that works well for some doesn’t apply universally.

Factors That Should Guide Your Personal Decision

Health and Longevity Considerations

Your health and family longevity history should heavily influence your timing decision. If you’re healthy with long-lived relatives, delaying benefits might make financial sense. The Social Security Administration’s actuarial tables suggest that waiting until full retirement age or beyond typically pays off for people who live into their 80s and beyond.

However, if you have health concerns or family history suggests shorter lifespans, early filing could be wise. This isn’t just about maximizing dollars but about ensuring you actually receive the benefits you’ve earned through decades of work.

Financial Situation Analysis

Your current financial situation matters enormously. A robust retirement nest egg might allow you to delay Social Security and maximize those delayed retirement credits. But thin savings or no retirement funds might necessitate immediate benefit collection.

Consider these key financial factors:

• Current savings and investment balances
• Other sources of retirement income (pensions, 401k distributions)
• Monthly expenses and cash flow needs
• Debt obligations that continue into retirement

Spousal and Survivor Benefits

Don’t overlook spousal considerations either. Social Security survivor benefits mean your filing decision affects what your spouse receives after you’re gone. These calculations become complex quickly, especially with different age gaps and earning histories between spouses.

For married couples, the higher-earning spouse’s filing decision has particularly significant implications. Delaying benefits not only increases their own monthly payment but also the survivor benefit their spouse would eventually receive.

Getting Professional Guidance

Given the complexity and lifelong impact of this choice, working with a qualified financial advisor makes tremendous sense. They can analyze your specific circumstances including health, savings, income needs, and family situation to determine optimal filing strategies.

A skilled advisor will model different scenarios showing how various filing ages affect your lifetime Social Security benefits. They’ll also demonstrate how Social Security integrates with your other retirement income sources like pensions and 401(k) accounts, creating a comprehensive retirement income plan.

What to Expect from Professional Analysis

Financial professionals typically use specialized software to project outcomes under different scenarios. This analysis might include:

• Break-even calculations showing when delayed filing pays off
• Tax implications of different filing strategies
• Integration with other retirement accounts and withdrawal strategies
• Impact on Medicare premiums and other age-related benefits

Remember, you generally cannot reverse your Social Security filing decision once you start collecting benefits, though limited exceptions exist within the first 12 months. This choice follows you throughout retirement, potentially affecting thousands of dollars over your lifetime.

Taking time now to thoroughly evaluate your options could significantly impact your financial security during your golden years, making this decision worthy of careful consideration and professional input when needed.