Podcast Summary: "Don’t Wait Until 70 for Social Security Unless You Hear This First"

Podcast: Ready For Retirement
Host: James Conole, CFP®
Episode Date: November 30, 2025

Episode Overview

This episode challenges the conventional wisdom that everyone should delay claiming Social Security until age 70. Host James Conole, CFP®, draws from real-life client experiences and financial planning expertise to illustrate why this one-size-fits-all approach may backfire for many retirees. The episode breaks down the underlying math, considers the opportunity costs, and uses case studies to show when waiting until 70 makes sense—and when it doesn't.

Key Discussion Points & Insights

1. The Appeal and Limits of Waiting Until 70 ([00:00]–[04:20])

• Conventional thinking: Waiting until age 70 maximizes your monthly Social Security check due to an 8% annual delayed retirement credit after full retirement age.
• James’ perspective: "Retirement's not lived on paper, it's lived in reality. … This decision on Social Security actually impacts every other decision with your financial planning as well." ([01:08])
• Delaying Social Security may mean drawing down your portfolio during the gap between retirement (e.g., at 62) and age 70, introducing significant "opportunity cost" by shrinking your investment base.
• Evaluating the total lifetime income from both Social Security and portfolio withdrawals is crucial, not just focusing on maximizing one source.

2. Opportunity Costs of Waiting ([02:20]–[06:00])

• Withdrawing funds from investments sooner means:
  • Less time for investments to grow.
  • Potential reduction in long-term portfolio value and income security.
• James emphasizes, "You are simultaneously increasing your Social Security benefit, but also decreasing your portfolio and decreasing the income you could potentially create from your portfolio." ([03:13])
• Health and longevity: Delaying only makes sense if you realistically expect to enjoy those higher benefits for enough years.

3. Considering Health, Longevity, and Risk ([06:00]–[09:00])

• Plans based solely on maximizing monthly benefits ignore reality: "No age is guaranteed. … If you're not in good health, if you don't have longevity in your family, waiting until 70 might maximize your monthly benefit, but we're more concerned about…the lifetime Social Security benefit." ([06:47])

4. Case Studies: When Delaying Worked…and Didn't ([09:00]–[15:40])

Case Study 1: Greg and Michelle (Delaying Worked) ([09:25])

• Ages: 66 (Greg) and 64 (Michelle).
• Financial Profile: Ample savings, significant brokerage and cash reserves, moderate spending, large pre-tax IRA balances, and good family health/longevity.
• Strategy & Outcome:
  • Delayed Social Security until 70.
  • Used cash and brokerage accounts for spending in the gap years.
  • Executed Roth IRA conversions during low-income years, reducing future required minimum distributions (RMDs) that could have pushed them into higher tax brackets.
  • "By delaying Social Security, not only did it maximize income, but it allowed them to position their Roth assets for maximum long-term growth because that was money that would never be taxed again." ([11:45])

Case Study 2: Linda (Delaying Backfired) ([12:09])

• Age: 63.
• Financial Profile: Moderate health, average family longevity.
• Strategy & Outcome:
  • Waited until 70 to collect Social Security based on mainstream advice.
  • Drained much of her portfolio between 63–70, leaving her with fewer liquid assets and increased anxiety.
  • "She had to spin through most of her portfolio assets between 63 and 70. So by age 70, she had a good benefit, but she didn't feel very secure going forward…" ([13:30])
  • Realized too late that claiming earlier might have given her more security and flexibility.

5. When Delaying May Not Make Sense ([15:40]–[21:15])

James highlights several scenarios where waiting until 70 is usually the wrong choice:

• Poor health or low family longevity.
  • "Waiting until 70 maximizes your monthly benefit, but probably reduces the overall income you’re going to receive…" ([16:08])
• Needing to draw heavily on your portfolio to bridge the gap to 70, which reduces future investment income.
• Facing a bear market during the gap years, which could devastate a shrinking portfolio.
  • "What if… the market's down 30% or 40%? That is really putting significant pressure on the portfolio…" ([18:20])
• Prioritizing flexibility and enjoyment in early retirement: If most of your fun, travel, and active spending happens early on, you may value getting Social Security sooner.
  • James cautions: "Make sure you're not doing that at the cost of your tomorrow." ([19:48])

Notable Quotes & Memorable Moments

• "Retirement's not lived on paper, it's lived in reality… This decision on Social Security actually impacts every other decision with your financial planning as well."
  — James Conole ([01:08])

• "What you really should be looking at is what's the highest net combined amount that you could receive between Social Security and your portfolio, not just looking at this number growing."
  — James Conole ([02:52])

• "No age is guaranteed. … There is something to be said if we don't know if we're going to make it, we don't know how long we have. So there's a delicate balance there."
  — James Conole ([06:47])

• On Linda’s story:
  “She maximized Social Security, but the cost of that was diminishing or drawing down much of her portfolio reserves. So for Linda, waiting until 70 didn't hurt Social Security; it just hurt other aspects of her plan.”
  — James Conole ([13:59])

• On flexibility and early retirement spending:
  “Your early years of retirement, you're spending a whole lot more, you're doing a whole lot more, you're traveling, you're enjoying… There’s something to be said of, do you take it now? Do you enjoy it now?”
  — James Conole ([19:36])

Important Timestamps

• 00:00–01:30 — The myth of "always wait until 70"
• 03:13 — Opportunity cost of portfolio withdrawals
• 06:47 — Health, longevity, and the unknown
• 09:25 — Case Study: Greg and Michelle delay, reaping benefits
• 12:09 — Case Study: Linda delays, faces unintended consequences
• 16:08 — Scenarios where waiting may not make sense
• 18:20 — Market risk with portfolio withdrawals
• 19:36–19:48 — Flexibility and early retirement lifestyle
• 20:50–21:15 — Final summary and holistic advice

Final Takeaways

• Delaying Social Security to 70 can be an excellent strategy—for the right retiree—but is not universally optimal.
• Always examine:
  • Health and longevity prospects.
  • Whether you'll rely on your portfolio for the gap years, and the associated risks.
  • Tax strategies, such as Roth conversions, that can be enhanced by lower income years.
  • Your overall lifestyle goals, spending needs, and risk tolerance.
• James’ advice:
  “Delaying Social Security until 70 is not a one size fits all solution. It’s one potential strategy. … Run the numbers both ways… and then make the decision that’s best for you.” ([20:50])

This episode delivers clear, actionable insights to help listeners build a comprehensive and personalized Social Security claiming strategy—not just follow rules of thumb.