Social Security plays a critical role in retirement planning for many Americans. According to a Northwestern Mutual Report, the average American anticipates Social Security will cover 28% of their retirement income – the same proportion as retirement savings and more than personal savings, which account for 22%. Despite its importance, financial experts like Grant Cardone caution against heavily relying on this federal program.
Cardone, a private equity fund manager and real estate investor, has made bold statements about the future of Social Security. He believes the program is not a stable foundation for retirement planning. “Anyone that depends on any federal program to take care of your future is bordering on irresponsibility,” Cardone told GoBankingRates.
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For those who are decades away from retirement, Cardone recommends planning as if Social Security will no longer exist by the time they reach eligibility. “If you’re under 30 years old, you should think that the Social Security program will be broke by the time you get there,” he said.
However, for individuals already in their 60s, Cardone takes a different approach. He advises them to start claiming benefits as soon as they’re eligible – currently age 62. “If you’re above 60, grab as much money as you can from the federal government,” he stated.
Cardone isn’t the only influential finance celebrity advising people to take Social Security early.
Dave Ramsey has also said that taking benefits early can be a smart financial move. Ramsey notes that while delaying Social Security can result in higher monthly payments, there’s a compelling case for claiming benefits early and investing the money.
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“The difference [between taking benefits at 62 versus full retirement age] could be made up almost every time by taking every dollar from 62 to 66 you get and putting it in a good investment,” Ramsey said on his show in 2019. “If the investment returns give you greater than the difference for the rest of your life – almost every time – it makes sense to take it early.”
While Cardone and Ramsey argue for taking Social Security early, many financial experts suggest a more conservative approach: waiting until full retirement age (66–67, depending on your birth year) or even age 70. The Social Security Administration (SSA) emphasizes that delaying benefits results in higher monthly payments for life. This can provide more financial stability, particularly for individuals expecting to live well into their 80s or beyond.
