"In a 2019 podcast, Ramsey recommended claiming Social Security at 62. Since that's the earliest age when you can claim retirement benefits, listening to Ramsey's advice would mean starting your checks ASAP and well before your full retirement age, which is when you become entitled to your standard benefit. This advice is surprising - especially since it wasn't just a one-off comment made on a podcast."
"This is also the official position published on the Ramsey Solutions blog, which says: "In most cases, it actually makes more sense to take your retirement benefits sooner instead of waiting later. Why? Because your retirement payments die when you die . . . so you might as well take the money and make the most of it while you can.""
"The blog goes on to suggest that you should start receiving your benefits ASAP, but try to invest the money if you can. The problem is that this advice is absolutely terrible - and it could cost you a lot more than you'd think. In fact, it could cost the typical retiree as much as $182,370."
Advice to claim Social Security at age 62 encourages immediate receipt and investing those payments. Taking benefits at 62 yields reduced monthly checks and permanently lowers lifetime retirement income compared with delayed claiming. National Bureau of Economic Research data indicate that waiting until age 70 maximizes expected lifetime benefits for more than 90% of working-aged Americans. Early claiming can therefore be extremely costly; an illustrative typical retiree could lose as much as $182,370 in lifetime benefits by claiming too soon. Retirement planning should weigh longevity, spousal benefits, and investment returns against the guaranteed, permanent reduction from early Social Security claiming.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]