For years, financial advisors and retirement experts have pushed the same conventional wisdom about Social Security: Wait until age 70 to claim your benefits. The argument is simple—by delaying, you receive an 8% annual increase in your monthly payout after full retirement age (FRA).

 

But is this one-size-fits-all advice truly the best approach for everyone? Or is it time to break free from the outdated Social Security playbook and rethink how we optimize benefits?

 

In this article, we’ll explore:
 

• The real math behind Social Security’s breakeven point
   

• The alarming long-term health of Social Security (and why that matters)
   

• The case for taking benefits early instead of waiting
   

• A “Social Security Fantasy” scenario that most retirees wish they could do— and are shocked to discover can actually be replicated in real life through creative planning strategies. 
   

 

The Breakeven Point: When Does Waiting Until 70 Pay Off?

 

Yes, delaying Social Security increases your monthly benefit. But the bigger question is: How long do you have to live to break even?
 

• If you claim at 62, you start collecting eight full years earlier than someone who waits until 70.
   

• If you claim at 67 (full retirement age for most people today), you collect three years earlier than waiting until 70.
   

• While waiting increases your benefit, you’re giving up years of actual payments in the meantime.

 

Example: How Long Until You Break Even?

 

Let’s say your full retirement age benefit is $2,000 per month at 67.
 

• If you claim early at 62, your benefit is reduced to around $1,400 per month.
   

• If you wait until 70, your benefit increases to about $2,480 per month.

 

On the surface, waiting seems like the better deal. But by the time you turn 70 and start collecting, the person who claimed early at 62 has already received over $134,000 in benefits.

 

That means if you don’t live past 80-83, the math actually favors claiming earlier. But if you live into your late 80s or 90s, delaying could make sense—IF Social Security remains fully funded.
 

 

The Shocking Reality of Social Security’s Solvency

 

The Social Security system is under immense financial pressure. The trust fund is projected to be depleted by 2034 (or sooner), at which point benefits could be automatically cut by 20-25% unless Congress makes major changes.

 

Here’s what that means:
 

• The government currently owes over $22 trillion in future Social Security benefits with no clear way to fund them.
   

• Today, there are 2.7 workers per retiree, down from over 5 workers per retiree in previous decades.
   

• If the trust fund runs dry, retirees who planned for full benefits may face significant reductions in their income.
   

With this uncertainty, the question isn’t just “Should I wait until 70?” but rather “Will Social Security still be fully funded if I wait?”
 

 

The Case for Taking Social Security Early

 

While many financial advisors push for delaying benefits, there are compelling reasons to consider claiming earlier:

 

1. Get What You Can While You Can

 

With the looming funding crisis, some retirees prefer to start collecting before potential cuts take effect. By taking benefits earlier, you lock in guaranteed payments before any reductions.
 

 

2. Reduce Pressure on Your Personal Assets

 

Taking Social Security early means less money coming out of your personal savings. This allows your investment accounts and retirement assets to last longer.
 

 

3. Reinvest Early Benefits to Build a Larger Nest Egg

 

Even if you don’t need the income, you could:
 

• Take early Social Security payments
   

• Invest them in tax-efficient vehicles (such as Roth IRAs, non-qualified brokerage accounts, or cash-value life insurance)
   

• Build a larger, tax-advantaged inheritance for your heirs

 

Unlike Social Security, which ends at death, private investments offer the ability to pass wealth to the next generation.

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The Social Security Fantasy: What If You Could Claim Multiple Times?

 

What if instead of choosing between 62, 67, or 70, you could claim Social Security multiple times – as in, what if there were multiple streams of Social Security that could be activated at different intervals throughout retirement. 

 

Imagine this:
 

• You turn on one stream of Social Security at 62
   

• You turn on a second stream at 67
   

• You turn on a third at 70
   

• Maybe even a fourth at 75, etc…
   

Every few years, you’d get an automatic 20% raise in guaranteed lifetime income—completely independent of the stock market or economic conditions.

 

What if we told you that while this concept doesn’t exist within Social Security—it can absolutely be replicated in real life.

​

 

How a Laddered Lifetime Income Annuity Portfolio Turns That Exact Fantasy Into Reality

 

A well-structured laddered annuity portfolio can mimic this exact Social Security dream scenario.

Here’s how:
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• Start one guaranteed income stream at 62
   

• Add another income stream at 67 (for a 20% raise)
   

• Layer another at 70, 75, or beyond
   

• Receive built-in 8% growth per year on deferred income streams
   

• Maintain control over lump sum assets (unlike a traditional annuity or pension)
   

• Ensure full survivor benefits for a spouse
   

• Pass down principal to heirs instead of leaving money behind

 

Rather than hoping Social Security remains fully funded, a customized annuity ladder allows you to build your own personal pension, with multiple guaranteed raises over time.
 

 

Want to See a Visual Demo of How This Works?

 

If this strategy intrigues you, let’s map it out for your specific situation.
 

 

• What if you could create your own Social Security-style income stream, without automatic raises built in—without government insolvency risks or stock market uncertainty?
   

• What if you could receive multiple pay raises throughout retirement?
   

• What if you could guarantee lifetime income while preserving assets for your heirs?
  
   

Final Thoughts: Rethink the Social Security Playbook

 

The old advice of “Wait until 70 no matter what” is outdated.  Before making your decision, consider:
 

• The breakeven math
   

• The risk of future Social Security cuts
   

• The opportunity cost of delaying benefits
   

• The possibility of a personal income laddering strategy

 

If you want real financial security, you need more than just Social Security. Let’s build a strategy that puts YOU in control of your retirement income.

 

Schedule a Complimentary Strategy Session Today!

 

Let’s explore your options and find the best custom retirement income plan for you.