Claiming Social Security at 62 May Suit Many Americans Despite 8% Delay Credits
Updated
Updated · 24/7 Wall St. · Jun 16
Claiming Social Security at 62 May Suit Many Americans Despite 8% Delay Credits
3 articles · Updated · 24/7 Wall St. · Jun 16
Summary
$2,480 a month at 70 versus about $1,400 at 62 means delaying usually wins on pure math, with a break-even age around 80 to 82.
20.6 years of remaining life expectancy at 65 puts the average American past that break-even point, undermining Dave Ramsey’s argument that investing early checks beats waiting.
Nearly half of recipients still claim at 62 because many cannot bridge the gap to 70; the average retirement age is 62 and average 401(k) balances for ages 60 to 64 are $246,500.
For workers without pensions or strong savings, taking benefits early can preserve cash flow and avoid draining retirement accounts in weak markets, making Ramsey’s conclusion broadly practical even if his reasoning is flawed.