Suze Orman, the New York Times best-selling author of "The Ultimate Retirement Guide for 50+," podcaster, finance guru and motivational speaker, has seen it all when it comes to retirement mistakes.
In her nearly forty years as a financial adviser, people have come to her when they’ve spent too much money, paid too much in taxes, or made hasty decisions that lost them too much money.
But the biggest mistake, the one that Orman sees all the time, the one that people lose thousands of dollars over, is claiming Social Security early.
What constitutes early for Orman? Claiming anytime before at least your full retirement age, which is 67 for anyone born after 1960.
“Everybody thinks Social Security isn’t going to be there. Everybody is scared to death, but I wouldn’t be,” says Orman. By claiming early, “you’re passing up an 8% increase each year in your Social Security from your full retirement age all the way to 70.”
You may not think delaying filing for Social Security makes that big a difference in terms of your benefit amount, but it could add up to a lot more money than you realize. The maximum a 62-year-old can receive monthly in 2025 is $2,831. If that person waits until they turn age 66/67 to file for benefits, their monthly check increases to $4,018. If they hold off until age 70, their check increases to $5,108.
