"Ramsey's logic for claiming Social Security at 62 is simple. As he puts it, Social Security dies with you. So the sooner you claim benefits, the more monthly payments you might end up with. Ramsey also thinks that investing those benefits could grow them into a larger sum than what you'd get by waiting to file. But Ramsey's advice is based on three assumptions: You won't live a long life You'll invest your benefits rather than spend them You'll invest your benefits wisely"
"Let's say you're in that boat, and you're eligible for $2,000 a month in Social Security at FRA. If you file at 62 instead, you'll shrink your benefits to $1,400. If you're unable to work part-time in retirement and you don't have other income to rely on, you might have to cover all of your monthly expenses on a mere $1,400 check. If that doesn't sound doable,"
When eligible at 62, monthly Social Security benefits begin but are reduced compared with Full Retirement Age (FRA) at 67. Delaying benefits past FRA increases monthly payments by 8% per year until age 70. Some advice recommends claiming at 62 to receive payments sooner and invest them to potentially outgrow delayed benefits. That recommendation depends on a shorter lifespan, investing benefits instead of spending them, and investing successfully. Many people live into their 90s, making early claiming risky for both lifetime income and monthly income. Early claiming can be especially harmful for people without retirement savings who must rely on a reduced monthly check.
Read at 24/7 Wall St.
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