Claiming Social Security at 62 Cuts Benefits to 70% as Taxes and Longevity Complicate Ramsey's Advice
Updated
Updated · 24/7 Wall St. · Sep 29
Claiming Social Security at 62 Cuts Benefits to 70% as Taxes and Longevity Complicate Ramsey's Advice
2 articles · Updated · 24/7 Wall St. · Sep 29
Summary
Workers born in 1960 or later who claim Social Security at 62 get 70% of their age-67 benefit, while waiting until 70 lifts payments to 124%—about $1,400 versus $2,480 on a $2,000 baseline.
Break-even math undercuts any one-size-fits-all rule: 62 versus 67 crosses near age 78 years 8 months, and 62 versus 70 near 80 years 4 months, before taxes, market returns and survivor benefits are added.
Taxes and Medicare can further weaken a claim-and-invest strategy, with up to 85% of benefits taxable above $34,000 in individual combined income and IRMAA surcharges starting at $109,000 of 2026 MAGI.
Work income adds another wrinkle: in 2026, benefits are withheld above $24,480 before full retirement age, though SSA later recalculates payments for months withheld under the earnings test.
For married couples and long-lived retirees, delaying can be more valuable because higher benefits can raise survivor income, even as Social Security's trust fund is projected to cover about 78% of scheduled retirement benefits after 2032 without congressional action.