Dave Ramsey says grab Social Security ASAP — but NBER data shows early claiming costs a median $182,370

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Should you claim your Social Security benefits at age 62, when you first become eligible, or 70, when you can maximize your monthly payouts? If you're radio host Dave Ramsey, the answer is pretty simple: as soon as possible.

"Social Security dies when you die," he once told a caller on The Ramsey Show (1). "It's a negative rate of return. The money you put into Social Security you will never get all of it out ... so you might as well get all you can get as fast as you can get."

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Most Americans seem to have a similar philosophy on Social Security. Only 10% of adults surveyed by investment firm Schroders (2) said they would wait until age 70 to file their claim, while 44% said they would file before Full Retirement Age (FRA).

However, researchers who actually ran the numbers found that this could be a costly mistake. Here's what the data suggests is the best time to file your claim.

A 2022 paper published by the National Bureau of Economic Research (3) found that waiting was usually the best approach to optimize Social Security payouts over the course of retirement.

"We find that virtually all American workers age 45 to 62 should wait beyond age 65 to collect," says the report. "More than 90 percent should wait till age 70."

For people in this age group, an early claim had a clear and measurable cost, as the median reduction in lifetime discretionary spending is $182,370, according to NBER's analysis. In other words, you could be missing out on a huge six-figure sum by claiming benefits early.

To be fair, most people are vaguely aware of this tradeoff. For instance, nearly 70% of U.S. adults told Schroders (2) they know that waiting longer boosts their payments. However, many early claimants suggested that the need or desire for early cash flows, or concerns about the program's long-term financial sustainability, was driving this move.

Claiming at 62 might be the right call for plenty of people — those in poor health or with a family history of shorter lifespans, anyone who needs the income to cover essentials now or a lower-earning spouse coordinating around a higher earner's benefit. But those are specific circumstances, not a universal blueprint. For a healthy person who can afford to wait, delaying is closer to buying cheap longevity insurance than leaving money on the table.

The good news is that with a little planning you can prepare yourself for the wait and optimize your payouts.

If you're planning to delay benefits by a few years, you might need to find either the right plan or a financial bridge.

For those who retire early but delay their claim, a personal safety net built on robust assets, such as gold, might be a secure option. Traditionally considered a safe haven asset, this precious metal can help you store some of your wealth in an investment that you can rely on during retirement.

For instance, Goldco can help you take this asset to the next level with a gold IRA, which combines the advantages of gold with the significant tax advantages of an IRA. With a minimum purchase of $10,000, Goldco offers free shipping and access to a library of retirement resources. Plus, the company will match up to 10% of qualified purchases in free silver.

If you're curious whether this is the right investment to diversify your portfolio, you can download your free gold and silver information guide today.

As you get closer to retirement, you may also need a tighter budget during these years. In addition to worrying about Social Security benefits, rising health care costs, uncertain markets and fixed incomes can make it harder to stretch your savings — especially if you're trying to plan for decades ahead.

For this reason, you might want to consider joining senior-focused organizations like AARP for discounts on almost everything — from prescriptions and dental plans to travel, entertainment and insurance.

As one of the most trusted organizations for older Americans, AARP not only offers money-saving perks, but they can also help you make informed financial and health decisions. AARP members get access to guides that can help you make the most of Social Security, choose the right Medicare plan and uncover other government benefits — potentially saving you thousands.

Alternatively, if you're planning to work longer and stay employed until FRA or age 70, you may want to consult a financial advisor to find the best time for you to claim. An experienced advisor should be able to help you consider all the factors that impact your lifestyle, spending habits and lifetime payouts before making a decision.

Working with a professional may be even more efficient if you're relatively affluent. That's when tax and retirement planning really make a difference. Managing withdrawals, minimizing tax exposure and ensuring long-term sustainability often requires greater coordination and strategic planning.

If you have a portfolio of $250,000 or more, platforms like WiserAdvisor can connect you with vetted professionals who specialize in this kind of planning.

Simply answer a few questions about your savings, retirement timeline and overall investment portfolio. From there, WiserAdvisor reviews its network to match you — for free — with up to three vetted, reputable advisors aligned with your specific needs.

You can then schedule no-obligation consultations with your matches to determine who is the best fit for your long-term goals.

WiserAdvisor is a matching service and does not provide financial advice directly. All matched advisors are third parties, and specific financial results are not guaranteed.

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YouTube (1); Schroders (2); National Bureau of Economic Research (3)

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.