90% of Americans plan to reject 1 top Social Security tip, costing them thousands of dollars. Will you ignore it, too?
90% of Americans plan to reject 1 top Social Security tip, costing them thousands of dollars. Will you ignore it, too?.
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On social media, there are legions of influencers telling older Americans to claim retirement early, but one entrenched financial expert couldn't disagree more.
"If you are married, please have the higher earner wait as long as possible — ideally until 70," money guru Suze Orman wrote in a recent blog post (1).
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Orman added that this was the "strongest move" for most retirees, but that it's not quite as simple as just delaying your retirement blindly. There was a caveat for couples.
"The surviving spouse receives the larger of the two benefits," Orman wrote. "Making that number as large as possible is one of the most important financial gifts you can leave your partner."
She also noted that in some cases it does make sense to retire early. Specifically, Orman says it's understandable for those with health conditions that reduce life expectancy and for anyone who can't work to meet their financial obligations.
However, Orman's broad advice runs counter to that of another well-known expert.
"In most cases, it actually makes more sense to take your retirement benefits sooner instead of waiting later," radio host Dave Ramsey (2) wrote in a 2025 blog post.
Regardless of who's right, a large swathe of older Americans agree with Ramsey.
A whopping 90% of non-retirees surveyed by investment firm Schroders (3) in 2025 said they plan to file for Social Security benefits before age 70. Roughly 44% don't even want to wait until their full retirement age of 67. Surprisingly, Deb Boyden, head of U.S. defined contribution at Schroders, told CBS News (4) that nearly 70% of respondents were fully aware that waiting longer led to higher payments.
Simply put, millions of Americans are willingly signing up for a permanent cut in long-term benefits. And the decision could be costing them six figures over the course of their retirement. Here's why.
The Social Security Administration (5) (SSA) makes it abundantly clear that patience is rewarded.
Taking Social Security at 62, the earliest possible age, results in a 30% reduction in monthly benefits, while delaying until 70 increases your monthly benefit by approximately 8% per year beyond full retirement age. That makes it 24% higher than starting at 67.
In 2022, the National Bureau of Economic Research (6) considered several other factors, including life expectancy, and found that "virtually all American workers age 45 to 62 should wait beyond age 65 to collect. More than 90 percent should wait till age 70." Claiming early, according to the report, led to a roughly $182,370 reduction in lifetime spending power.
Unfortunately, millions of Americans are willing to take that loss, not because of ignorance or impatience, but desperation. The average 65-year-old faces a $109,000 shortfall in retirement savings, according to CareScout (7), a long-term care network. Nearly 40% of Baby Boomers and 50% of Gen Xers — the next cohort approaching retirement — fear they could outlive their wealth during their golden years.
