Viral Social Security advice vs. reality: Why Ramsey expert says ‘there is no magic age’
Ramsey Show personality and host George Kamel breaks down the myth-truth about Social Security funding cuts with Fox News Digital.
As concerns mount that the Social Security Old-Age and Survivors Insurance (OASI) Trust Fund will be depleted in 2032, an online trend is urging Americans to claim their retirement benefits at age 62.
But Ramsey Solutions financial and human resources expert George Kamel is pushing back online, telling Fox News Digital that the panic reflects the “overflow of toilet paper in the time of COVID,” and warning that filling up early out of fear locks in “endless pay, not freedom.”
“These articles are classical fearmongering, and they are not based on reality. A lot of context is left out,” said Kamel. “If you see, ‘Depletion 2032 [for] Public Safety,’ is like a toilet paper run during COVID. Everyone’s like, ‘I’ve got to go to the store and clear the shelves, I’ll have nothing left.’
“The truth is, that fund was left over from pre-funding the baby boomer generation and fixing the bumps in the road. So this doesn’t mean Social Security is going to go away. The worst case scenario is a 22% cut in monthly benefits. So that’s a long way from zero and bankruptcy,” he continued.
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After the Social Security Administration released its 2026 Trustees report – which ensured that the federal retirement safety net was less than seven years from the reduction of the reserve – financial adviser and author Suze Orman called the advance “bad advice,” warning that it would lock retirees into a permanent 30% reduction in monthly benefits that cannot be reversed.
A woman holds a sign in support of Social Security Administration workers on Security Boulevard in front of the agency’s headquarters in Woodlawn, Maryland. (Getty Images)
Kamel agreed with the emotional risk of claiming Social Security early, but criticized the strict “keep waiting” rule.
“You are right that there are many emotions here, and fear is a bad reason to hold it at 62. Now, where we may not agree that you should always wait … There are many factors that come into play in deciding when to take social security. And it really depends on your health, your health, your income, the situation of your family,” he explained.
“It is better to talk to a doctor than to look at the government’s life expectancy chart to make this choice,” he added. “So there’s no magic age, it’s not always 62, it’s not always 70. That’s a topic, not a plan.”
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Breaking down the math even further, Kamel argued that the government treats your full retirement age at age 67 as 100% of the basic benefit. Claiming five years early, at age 62, forces you to accept a permanent 30% reduction in salary for the rest of your life. However, if you delay applying until age 70, the system rewards your patience with a permanent 24% increase in benefits.
“The truth is, if you need to take it at 62, you’re probably not doing well with your overall retirement. And if you can’t wait until 70, you probably didn’t really need it in the first place. So it’s kind of catch-22 and even make this decision, but it’s personal,” he said. “And the math assumes that $1 at 95 is the same as $1 at 65, and that you live long enough. And it doesn’t.”
“I’m not a fan of relying on a government program to fund your life forever. That’s a scary thought,” added Kamel. “And applying early is not control. It’s a small 30% check. So it’s a pay cut, not freedom.”
“You reap what you sow. That’s the truth. So if you plant corn, you’ll have corn at the end of this road. And if you don’t plant anything, don’t be surprised when you try to make it through a Social Security check.”
As the 2032 deadline approaches, many Americans think the worst-case scenario is inevitable if gridlock continues in Washington. But Kamel said the panic ignores how the federal government has handled similar financial crises in the past. Instead of letting the program run out of money, he predicts Capitol Hill will pull out its old playbook.
“Seventy million Americans are counting on the Social Security paycheck coming in. And so if you think about that … they’re going to vote with their wallets. So chances are any politician who decides to cut this is going to take a big time,” he said. “What’s going to happen is what happened in 1983… The trust fund runs out and they’ve made a few changes, not a big change, to help this.”
“I think the same thing is going to be true – they might adjust the cost of living adjustment. They might change the full retirement age from 67 to 68 or 69. They might increase the payroll tax from 6.2% to 6.5%. And so these incremental changes would help. I don’t see a world where, in 2032, where are we all going to be, ‘where is the money going to come from’?
Ramsey Solutions financial expert George Kamel rates working Americans in their early retirement years and offers advice to investors.
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Ultimately, Kamel insists that true financial peace doesn’t come from trying to get past the government’s changing timeline. Instead of thinking about what Washington is going to do about security, he suggested that the smartest move Americans can make is to shift their focus entirely to what they can control in their own homes.
“You’re your best picture of retirement. It’s not a government job, it’s not a Washington job, it’s not a title, it’s not a trust fund day. You control the things that control, and one of those things is creating your nest egg… There’s hope there. But it’s not in the hands of the trust fund. [the] White House, it’s yours.”
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