
Most people treat Social Security as a fixed outcome, just another box to check when retirement arrives. Select an age, complete the form, and proceed. But the truth is, your choices around Social Security can unlock, or quietly erase, tens of thousands of dollars over time.
The timing of your claim, whether you’re still working, your marital history, even how you coordinate with your spouse’s benefit… it all matters. And yet, plenty of financial advisors either avoid the topic or admit they don’t know how the system works. That leaves you on your own to navigate rules that weren’t designed to be intuitive, and change more often than most people realize.
We’re walking through the kinds of Social Security questions that don’t get answered anywhere else. From how remarriage changes your options, to what really happens when you claim while still working, to why your savings could shrink faster than expected, these aren’t niche hypotheticals. They’re decisions with long-term effects, and it’s time more people knew what’s really at stake.
You will want to hear this episode if you are interested in…
- (00:00) The Social Security Surprises That Could Cost You Thousands.
- (04:11) What your advisor might not know (but should) about Social Security.
- (06:25) The earnings test demystified through a real-life example.
- (09:39) Spousal, ex-spousal, and survivor benefits: who qualifies and when.
- (14:57) Major policy changes: The Fairness Act and unexpected lump sum payouts.
- (26:20) Legal custody, grandchildren, and overlooked Social Security benefits.
Why Most Advisors Aren’t Equipped to Guide You on Social Security
Most people assume their financial advisor has Social Security all figured out, but that’s not always the case. I’ve met clients whose previous advisors flat-out admitted they didn’t know the rules and told them to “just call Social Security.” That’s not good enough. If you’re over 55, Social Security isn’t a footnote; it’s a core pillar of your retirement strategy.
Knowing how it interacts with your income plan, taxes, and withdrawal sequence can make or break your financial future. It’s too important to leave to guesswork.
The Real Cost of Claiming Early (or Delaying Too Long)
Social Security decisions depend on context: your current income, your spouse’s benefit, your life expectancy, and your backup reserves. Claiming early can reduce your monthly benefit for life and affect what your spouse receives if you pass first. The earnings test can claw back your benefit if you’re still working and earn above a certain threshold.
And there are scenarios where taking your benefit at 62 might make more sense than waiting, especially if you have health concerns or lack other sources of income. But that decision shouldn’t be made in a vacuum or based solely on maximizing one number. On the other hand, waiting until 70 can look great on paper, but it requires drawing down other assets to bridge the gap. In some cases, that eight-year delay can leave you nearly drained before checks even begin.
Without a pension or other income stream, you might end up with a high benefit and little else. And if market returns underperform during that drawdown period, the long-term impact on your net worth can be serious. Weighing guaranteed income versus portfolio liquidity is a tradeoff many overlook, and by the time they feel the strain, it’s often too late to course correct.
How to Maximize Benefits Without Triggering Penalties or Missed Opportunities
There are ways to increase your Social Security benefit that most people, and even some professionals, miss. Survivor benefits, retroactive claims, and avoiding the earnings test are just the beginning. Add in ex-spousal benefits, new rules from the Social Security Fairness Act, and changes to how certain workers qualify, and there’s more strategy here than most folks realize. I break it all down in plain English so you can confidently choose the best path forward for your unique situation.
Resources & People Mentioned
Connect With Gregg Gonzalez
- Email at: Gregg@RetireSTL.com
- Podcast: https://RetirementMadeEasyPodcast.com
- Website: https://StLouisFinancialAdvisor.com
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