Suze Orman Says Stop Collecting Social Security Early Because 'You Could Be Sabotaging Your Financial Future'

Many Americans face a critical decision as they approach retirement: when to start collecting Social Security benefits. While some opt to claim as early as age 62, financial expert Suze Orman warns that this decision could be a major mistake. 

On a recent episode of her “Women & Money” podcast, Orman urged listeners to rethink early Social Security claims, emphasizing that fears about the program's future shouldn't dictate financial choices.

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The Fear of Social Security Running Out

Orman acknowledges that many people are worried about the long-term stability of Social Security. She said that some individuals rush to claim benefits early, fearing that if they wait, the system might collapse and they won't receive anything at all. However, she told her listeners to stop thinking that way because "you could be sabotaging your financial future."

Orman said that Social Security is a foundational part of financial security for millions of Americans and that it isn't going away any time soon. 

"If they were to do something like that or if Social Security all of a sudden stopped sending you checks because the whole system crashed, there would be such an uproar," she said. 

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Why Delaying Benefits Pays Off

Orman has consistently recommended waiting until age 70 to claim Social Security. By delaying, retirees can significantly increase their monthly payments. Under current rules, claiming at 62 results in reduced benefits, while waiting until full retirement age — age 66 or 67 depending on when you were born — allows recipients to receive 100% of their benefits. Those who hold off until 70 can receive even more — up to 32% higher than what they would get at full retirement age.

Orman cautioned against making hasty decisions based on fear, urging people to consider the long-term benefits of waiting. "Don’t claim at 67 when you were going to wait till 70 because you’re afraid that if you’re not already claiming that therefore you’ll maybe be cut," she advised.

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Potential Changes to Social Security

While Orman reassured listeners that Social Security won't disappear, she acknowledged that changes to the program are likely. Instead of cutting benefits for current recipients, she believes lawmakers may gradually increase the eligibility age for future retirees. "What they’re going to do is, like I told you before, they will postpone the age that you can get your Social Security," she explained.

She also pointed out that recent government layoffs and office closures could make it harder for people to apply for benefits or get answers to their questions. Orman encouraged listeners to be proactive and call their congresspeople and senators to urge them not to lay off Social Security workers. 

Steps to Take Now

For those concerned about Social Security, Orman recommends taking practical steps to prepare:

• Create an online "my Social Security" account to track your benefits.
• Gather necessary documents so you’re ready when it’s time to apply.
• Stay informed about potential policy changes.
• Advocate for Social Security resources by reaching out to lawmakers.

Ultimately, Orman says patience and planning are key. While uncertainty exists, she remains confident that Social Security will continue to be a cornerstone of retirement planning for millions of Americans.

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