Ask an Advisor: Should Social Security strategy change?

Ask an Advisor: Is my Social Security strategy outdated?

May 30, 2025 10:08 AM

A sign that says now is straight ahead, and later is a right turn

The turbulent economy has many retirees on edge as they see their nest eggs plummet and recover on a regular basis. That's in addition to major questions about the future of the Social Security program.

Social Security's trust fund is set to become insolvent in the 2030s, meaning beneficiaries will not receive full payments if Congress fails to shore up the system. And Elon Musk, leading the Department of Government Efficiency (DOGE), has called Social Security a Ponzi scheme and put in motion plans to decrease the agency's staff.

The concerns have led to some 276,000 more retirees claiming Social Security benefits this fiscal year — a 13% increase — according to the Urban Institute.

Traditional wisdom suggests waiting to claim Social Security benefits for as long as possible, since monthly payouts increase with age. But do the aforementioned concerns change that calculus?

We asked financial advisors whether the economy, DOGE and other factors are changing their Social Security withdrawal strategies. What are they hearing from clients? And what are they telling them?

Here's what they said. Responses have been lightly edited for length and clarity.

We’ve seen this show and know how it ends

Will Kellar, partner and lead advisor at Human Investing

The spike in early Social Security claims doesn't surprise me. It reflects what we are seeing in real time. Alarming headlines and political posturing are pushing retirees to claim early out of anxiety rather than necessity.

But the decision to claim Social Security should be grounded in planning, not panic. The program's challenges are real, but so is the pattern. Just like we've seen with debt ceiling debates or near-government shutdowns, the drama builds, the headlines get loud, and then at the last possible moment, something gets done.

I am not changing my Social Security strategy. I continue to help clients make decisions based on longevity, tax coordination and overall financial stability. Clients are definitely asking more questions, and my role is to guide them back to the fundamentals. We plan for what we know and remain flexible for what we do not. Reacting to fear rarely leads to better outcomes.

Is this anxiety or just timing?

Collin Brinker, senior financial planner at Donaldson Capital Management

I'll be honest — I wasn't aware of the 13% increase in Social Security claims until now. But even hearing that number, I don't think the explanation is as simple as panic over the future of the program. To me, this has far more to do with demographics than fear.

We're in the middle of a natural generational transition. A huge number of baby boomers are reaching retirement age — what some are calling "Peak 65." Many of them worked longer than previous generations, and now they're finally stepping into retirement and claiming benefits. That's not reactionary — that's just timing.

When it comes to helping someone decide when to claim Social Security, I take a very practical and personalized approach. We look at things like state taxation of benefits, age differences between spouses, shifts in spending across retirement phases and the mix of assets available. Too often, people reduce the question to, "What gives me the most cumulative benefit?" But in many cases, that mindset can actually cost more in taxes or create unnecessary stress down the road.

More questions, but fewer changes

Nathan Sebesta, owner of Access Wealth Strategies

I'm not changing my overall Social Security strategy in response to recent headlines, but I am having more conversations with clients about it.

The noise around insolvency, staffing cuts and high-profile criticism has certainly raised anxiety — especially among those nearing retirement. However, it's important to remember that while the trust fund may face shortfalls, Social Security isn't going away. Even if the trust fund were depleted, payroll taxes would still cover a majority of benefits.

I typically advise clients to consider waiting until full retirement age or even age 70 to begin taking benefits if they're in good health and have other income sources. Delaying will increase the monthly benefit and provide a form of longevity insurance. That said, Social Security is a deeply personal decision.

Ultimately, I remind clients that fear should not drive strategy. We base decisions on math, not media.

Earlier may be better

Daniel E. Milks, founder of Fiduciary Organization and Woodmark Advisors

Yes, concerns around Social Security are coming up more often — especially with headlines about trust fund insolvency and workforce cuts. Clients are understandably nervous, and I've seen a definite uptick in questions about whether they should claim early "while it's still there."

More often than not, I actually recommend clients consider taking Social Security early — especially if they don't have a strong family history of longevity. When you do the math, the break-even age for delaying benefits is often so far out that it doesn't make practical sense. And if you take that monthly benefit early and invest it, the compounding returns can easily beat the delayed benefit in real dollar terms.

Is my thinking shifting? Yes, a bit. While I still factor in health, income needs and taxes, I no longer assume delaying is the default "smart move." For many clients, especially those in their early 60s with moderate life expectancy, it just makes more sense to take the money now and maintain flexibility.

Social Security isn't disappearing tomorrow — but it is changing. Younger clients shouldn't rely on the full promise of benefits, and even retirees today need to make decisions based on math and lifestyle, not just the theoretical max payout.