The Role of Social Security in Your Retirement

Social Security is one of the few sources of income guaranteed for life — but it was never designed to fund your entire retirement, and when you claim can leave thousands of dollars on the table. In this video, Michael Alman explains how to treat Social Security as the foundation of a broader, more resilient income plan.

Video transcript

Most Americans make their biggest retirement mistake before they ever even retire — by claiming Social Security at the wrong time. Hi, I’m Michael Alman, a financial adviser with Patriot Asset Advisors, and today we’re looking at Social Security benefits and long-term strategic planning. When most people think about retirement income, Social Security is one of the first things that comes to mind — and for good reason. It’s one of the few sources of income that’s guaranteed for life. But here’s the reality: Social Security was never designed to fund your entire retirement.

Social Security replaces about 30 to 40% of a household’s pre-retirement income — and for some households, even less. That means the extras in retirement — hobbies, grandkids, vacations, travel — need to come from other sources, like pensions, annuities, investments, or part-time work. Retirement needs a multitude of income sources; it can’t all rest on Social Security. Social Security should be one portion of the pie.

Here’s why your claiming age matters, and where many people leave thousands of dollars on the table. If you claim early at 62, you start receiving benefits sooner but at a reduced amount. If you wait until full retirement age, you receive the full 100% of your guaranteed benefit. And if you delay up to age 70, you can receive up to 32% more. But choosing the right age isn’t just about the check — it’s about maximizing the benefit for where you are in your life and retirement. That means considering your health, your tax situation, your other sources of income, and your spouse or significant other’s situation.

At Patriot Asset Advisors, we treat Social Security as the foundation of your retirement income and build a strategy around it. For example, if Social Security covers 50% of your essential expenses, we build a plan to cover the gap without taking unnecessary risk. When your guaranteed income and your investments work together, your plan becomes more resilient, more tax-efficient, and more predictable from month to month. If you’re unsure when to claim, or how it fits into your overall retirement plan, that’s what we help clients do. Schedule your complimentary retirement plan checkup at patadvisors.com — we’ll run the numbers and help you build a plan that fits your lifestyle, not just for now, but for 20 or 30 years into the future. Because the right Social Security plan isn’t just about benefits; it’s about confidence.