Summary5 min read

Optimal Finance Daily – Episode 3444: [Part 2] Social Security: How Secure and When to Take It by JL Collins

Host: Diania Merriam
Guest Author: JL Collins
Air Date: February 2, 2026

Episode Overview

In this episode, Diania Merriam narrates Part 2 of JL Collins’ thorough exploration of Social Security—one of the most discussed elements of retirement planning. JL Collins simplifies the decision matrix surrounding when to claim Social Security and dispels common fears about its longevity. The conversation addresses critical questions: How secure is Social Security? When is the optimal time to take it? And what should different age groups expect? Diania adds her perspective as a millennial, highlighting the generational skepticism and practical steps listeners should take.

Key Discussion Points & Insights

1. The Timing Decision: When Should You Claim Social Security?

[01:11-02:13 | JL Collins]

Main Takeaway: The earlier you claim (from age 62), the smaller your checks; the later you wait (up to age 70), the larger your checks—but the collection window shrinks.
Decision boils down to four main questions:
1. Do you need the money now?
  - “If you genuinely need the money right now, nothing else matters.” — JL Collins [02:13]
2. Do you worry Social Security will collapse?
3. How long do you expect to live?
  - The break-even age is 82 to 85; if you expect to live past that, delaying pays off.
4. Are you married, and are you the higher-earning spouse?
  - Consider survivor benefits for a spouse who may outlive you.
Personal Example:
- JL Collins would delay his benefit for his wife’s potential survivor benefit, since “she could easily see 95 or 100... When I die, she'll have the option of switching from her benefit to mine, since mine will be larger.” [03:08]

2. Mental Acuity and Later Life Planning

[03:34 | JL Collins]

Delayed Social Security offers not just higher checks but also simplicity at an age when managing investments may be harder.
- “As we reach advanced age, our mental acuity diminishes... a monthly government check has more value than just the dollars.”

3. Will Social Security Run Out? JL Collins’ Perspective

[04:04-05:32 | JL Collins]

Many people fear imminent Social Security collapse, especially those 55 and under.
JL’s stance:
- “I'm not worried. If you're 55 or older, you'll collect every dime. Here's why: Social Security is backed by the most powerful lobby in history: AARP. Geezers are an increasing proportion of the population. Geezers vote. Politicians rarely try to take anything away from a large population that votes.” [04:31]
- Any significant changes would impact only those under 55.

4. The Future for Those Under 55

[05:33-06:39 | JL Collins]

The deal will be “a lot less sweet” for future retirees.
Expected changes:
- Promised benefits may shrink.
- Income caps for Social Security taxes will rise.
- Full retirement age will keep increasing (already 67 for those born 1960+).
- Benefits may eventually become means-tested.
- Higher-income recipients may see more of their benefit taxed.

5. Is Social Security a Good Deal?

[06:40-07:49 | JL Collins]

For committed savers and investors, “probably not.” You’d likely do better investing your payroll taxes yourself.
For most people, however, Social Security is a vital backstop.
- “Most people are goofs with their money. Without Social Security, many would be back to living on cat food.”
- JL’s guidance: “Plan your financial future assuming Social Security will not be there for you. Live below your means. Invest the surplus. Avoid debt and accumulate F U money. Be independent financially and otherwise—if or when Social Security comes through, enjoy.” [07:45]

6. Diania Merriam's Millennial Perspective and Practical Advice

[10:08-11:22 | Diania Merriam]

Diania echoes JL Collins’ skepticism as a millennial.
- “I assume Social Security just won't be available for me, or that the benefit would be such a small amount that it's not worth thinking about.” [10:08]
Citing Data:
- 80% of millennials worry Social Security won't be there (Transamerica survey).
- Trust fund projected to be depleted by 2035, but intervention is likely.
- “Social Security is an enormously popular program with bipartisan support and influential lobbies, including the almighty AARP.”
Future Benefits Projections
- Millennials might still receive significant benefits (Urban Institute estimates average single adults could receive about $1 million over a lifetime; couples, $2 million).
Actionable Step:
- Regularly verify your Social Security earnings record:
  - “Make sure your earnings are reported correctly to Social Security every two to three years.” [11:10]
  - Errors are much harder to fix decades later, so set up an account on the SSA website to check.

Notable Quotes & Memorable Moments

On Taking Social Security Early:
“If you genuinely need the money right now, nothing else matters.” — JL Collins [02:13]
On Survivor Benefit Planning:
“She could easily see 95 or 100... When I die, she'll have the option of switching from her benefit to mine, since mine will be larger. That's what she'll do to maximize that check.” — JL Collins [03:13]
On Social Security’s Political Resilience:
“Social Security is backed by the most powerful lobby in history. AARP. Geezers are an increasing proportion of the population. Geezers vote.” — JL Collins [04:31]
On Self-Reliance:
“Plan your financial future, assuming Social Security will not be there for you. Live below your means. Invest the surplus. Avoid debt and accumulate F U money.” — JL Collins [07:45]
Diania on Millennial Skepticism:
“I'm pretty much a typical millennial in that regard.” [10:09]
On Practical Steps:
“You should make sure your earnings are reported correctly to Social Security every two to three years… I for one, will be setting up an account on the Social Security Administration's website to review my earnings. And I hope you do, too.” — Diania Merriam [11:10]

Timestamps for Important Segments

01:11 – When to take Social Security: key variables
03:08 – Survivor benefits and delayed claiming example
03:34 – Mental acuity and the ease of monthly checks in old age
04:04 – Is Social Security running out? Why JL Collins isn’t worried for 55+
05:33 – What younger generations can expect from Social Security
06:40 – Is Social Security a good deal for savers versus the general public
07:45 – Collins’ financial independence guidance (“F U money”)
10:08 – Diania Merriam’s millennial perspective and actionable takeaway (check your SSA earnings record)

Conclusion

This episode dispels myths and fears about Social Security, providing clear, actionable guidance for both soon-to-be retirees and younger listeners. JL Collins urges listeners to plan as if Social Security might not be there—while also recognizing its vital role for most Americans. Diania Merriam reinforces practical steps like regularly checking your earnings record, offering a dose of realism for the millennial generation. The episode delivers detailed, jargon-free advice and memorable, quotable wisdom for anyone thinking about retirement planning.

For more, visit jlcollinsnh.com or catch Diania Merriam and Optimal Finance Daily—your go-to guide for practical personal finance insight.

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Transcript9 lines

[00:00]
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[01:12]
J.L. Collins
This is optimal Finance Daily Social Security How Secure and When to take it Part 2 by J.L. collins of JLCollinsNH.com when should I begin taking the money? Once you reach age 62, you can begin receiving Social Security. The catch is the sooner you start, the smaller your checks, the longer you delay. Up until age 70, the bigger the check. Of course, the longer you delay, the fewer the years you'll be collecting. Countless articles have been written about strategies attempting to answer the question as to when to begin receiving benefits. All kinds of fancy, sometimes complex strategies are described. I've read a bunch and my view in the end is it's really pretty simple. Since the government actuary tables are as good as they get, the payments are pretty much spot on with the odds. Here's what in order, you have to.
[02:11]
Northwest Registered Agent Representative
Ask.
[02:13]
J.L. Collins
When do I need the money? If you genuinely need the money right now, nothing else matters. But if you can delay, you might find some advantages. Number two, do you think Social Security will collapse and stop paying? If you believe this clearly, you'll want to collect while the collecting is good. For what it's worth, I happen to think you're wrong and I'll explain why further on. How long are you going to live? The longer you live, the more advantageous delaying is. The break even point between age 62 and 68 is around age 82 to 85. If you think you'll die before then, you might want to take the money sooner. And number four, unless you're married and you are the higher earning spouse, then you'll also want to consider how long your spouse will live. If your spouse is likely to outlive you upon your passing, he or she will be able to trade in their lower Social Security payments for your bigger checks. For example, my wife and I are both in good health. But looking at family histories and because women outlive men, my best guess is that she'll survive me, maybe by as much as two decades. I figure I'm good to maybe 80, 85. Were I alone, I'd start drawing ASAP. But she could easily see 95 or 100. When I die, she'll have the option of switching from her benefit to mine, since mine will be larger. That's what she'll do to maximize that check. For her, I'll delay taking my benefit until I'm 70. She'll start hers at 66. Another thing worth considering. As we reach advanced age, our mental acuity diminishes. Managing our investments becomes harder. We become more reliant on others. At that point, a monthly government check has more value than just the dollars. Of course, there's no way to know what the future really holds. The best we can do is play the odds. The odds look to me like Social Security is doomed. I'm taking mine asap. There are those who choose to take their benefits the moment they turn 62, even though the amount is reduced. Some simply need the money right now and have no choice. But others are acting out of fear. They believe Social Security will collapse in their lifetime, and they want to get what they can while they can. I'm not worried. If you're 55 or older, you'll collect every dime. Here's why. 1. Social Security is backed by the most powerful lobby in history. Aarp. Number two, geezers are an increasing proportion of the population. Number three, geezers vote. Number four. Politicians rarely try to take anything away from a large population that votes. And number five. This is why all the possible solutions being suggested will affect only those age 55 and under. Well, that's all well and good, but I'm under age 55. What about me? For anyone 55 and over, Social Security has turned out to be a pretty great deal. But mine and the generations older than I are likely the last that will enjoy such lofty benefits. The system is in trouble, and clearly changes will have to be made for those under 55. Today, the deal is likely to be a lot less sweet. You can expect, number one, to get 100% of any promised benefits. But the promises will be smaller. Number two, it will cost you more income caps. The amount of your income subject to Social Security tax will continue to be raised. In 2003, the cap was $87,000. For 2013, it was $113,700. As of 2020, it was $137,700. That's a trend that will continue. Number three, the full retirement age will continue to rise. It used to be 65. For me it's 66. For anyone born in 1960 or later, it's 67. Those ages will continue to rise. Number four, benefits may become means tested, that is based on your need rather than what you paid in. Number five, your benefit will be subject to income tax if your income is over a certain amount in 2020. For singles, this begins over $25,000. For married filing jointly, over 34,006. Congress will continue to tinker and in the end, Social Security will still be there so is Social Security a good deal? Well, it kind of depends. For the fiscally responsible types who follow this blog, probably not. If you took that 6.2% of your income you are compelled to contribute along with the 6.2% your employer is compelled to kick in and invest in it over the decades, using the strategies presented here, you'd likely be far, far ahead. Plus, your money would be in your hands and not subject to the whims of the government. But that's just the few of us I'm realistic enough to know. Most people are goofs with their money. Without Social Security, many would be back to living on cat food. Not only would the rest of us have to read about their sad plight, something much more draconian than Social Security might well be implemented to remedy the situation. So yes, for most people it will turn out to be a good deal, and probably for society as a whole. But not for you or me. Plan your financial future, assuming Social Security will not be there for you. Live below your means. Invest the surplus. Avoid debt and accumulate F U money. Be independent financially and otherwise if or when Social Security comes through. Enjoy. You just listened to part two of the post titled Social Security, How Secure and When to take it by J.L. collins of jlcollinsnh.com the New Year gets.
[08:37]
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[08:45]
J.L. Collins
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[09:44]
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[10:08]
J.L. Collins
Car selling made easy on Carvana. Pick up fees may apply. I'm with J.L. collins in that I assume Social Security just won't be available for me, or that the benefit would be such a small amount that it's not worth thinking about. I'm pretty much a typical millennial in that regard. According to a recent Transamerica survey, 80% of millennials worry that Social Security won't be around when we need it. And while none of us can know the future, I did see a few compelling arguments as to why some experts feel that Social Security will survive. While the trust fund is scheduled to be depleted by 2035, now it's probable Congress will intervene, as it did in 1977 and 1983, to strengthen Social Security's finances. That's because Social Security is an enormously popular program with bipartisan support and influential lobbies, including the almighty aarp. I also might be underestimating the value of Social Security to begin with. The Urban Institute estimates that Millennials are projected to receive twice as much as the current benefit. About a million for an average income single adult and 2 million for a couple. Some Social Security experts say that a worst case scenario would be to assume you'll get 70 to 80% of what your Social Security statement projects. And here's something I learned while reading about this. You should make sure your earnings are reported correctly to Social Security every two to three years. Your future Social Security check will be Based on your 35 highest earning years, but they need to be reported accurately, which doesn't always happen. You can correct those errors, but it can be really difficult if you catch them. Decades from now, if your employer goes out of business before you catch any errors, the needed documents may be unavailable. So I for one, will be setting up an account on the Social Security Administration's website to review my earnings. And I hope you do, too. But that'll do it for this episode. Have a happy rest of your day. And for watching, thanks, and I'll be back with you again tomorrow where optimal life awaits.