Data shows Dave Ramsey may be wrong about when to claim Social Security. How to ensure you're not following bad advice

Core Argument - Financial expert Dave Ramsey advocates for taking Social Security benefits as early as possible to maximize lifetime payouts, arguing that the system offers a negative rate of return [1] Group 1: Early vs. Delayed Benefits - Individuals born after 1960 face a roughly 30% reduction in monthly benefits if they start collecting at age 62, the earliest eligibility age [2] - The Social Security system rewards delayed claims, with monthly payments increasing for each month one waits after age 62 [3] - Delaying benefits can lead to an increase of about 8% per year for those born in 1943 or later, with a potential 24% increase in monthly benefits by waiting until age 70 compared to claiming at age 67 [4] Group 2: Research Findings - A 2023 study from the National Bureau of Economic Research indicates that waiting until full retirement age (67 for most) is generally the best option for American workers aged 45 to 62 [5] - The study suggests that over 90% of individuals should wait until age 70 to collect benefits, highlighting the significant financial implications of taking benefits early [5] - For those aged 45 to 62, the median loss in present value of lifetime discretionary spending from taking benefits early is estimated at $182,370, which could significantly impact retirement plans [5]