Should You Take Social Security When You Retire? Here's What Some Advisors Get Wrong

For most people approaching retirement, when to take Social Security is one of the most important financial decisions you'll ever make. The timing of your claim can impact your lifetime income, your spouse’s survivor benefits, and even your long-term tax strategy.

Unfortunately, we’ve seen some financial advisors recommending early Social Security claiming — often for the wrong reasons. Today, we’re going to unpack why that advice may not be in your best interest, and what you need to understand to make the right decision for your retirement.

Understanding How Social Security Benefits Work

Social Security benefits are based on when you choose to begin claiming them:

Claiming between ages 62 and 66 results in a reduction from your full retirement benefit.
Claiming at age 67 is considered full retirement age for most people.
Delaying benefits beyond 67 results in delayed retirement credits — increasing your benefit by 8% per year, up to age 70.

This 8% annual increase is guaranteed and backed by the federal government. Social Security also calculates your benefit based on your 35 highest-earning years, so working longer can lead to a higher benefit.

Where Some Financial Advisors Get It Wrong

We've heard statements from other advisors like this:

“There’s a lot of times where taking Social Security sooner is better because you earn significantly more on your own assets.”

This reasoning often comes from financial plans based on overly optimistic investment return assumptions. For example, some financial planners assume 9% or higher annual returns on investment portfolios.

In those models, it seems like a smart move to draw Social Security early and let your portfolio grow instead. But here's the problem: that 9% return isn’t guaranteed — and even if achieved over a ten year period, it isn't linear. It comes with volatility and risk.

Guaranteed Income vs. Market Guesswork: The Keys to Sound Retirement Income Planning in Raleigh & Charlotte

Compare the two options:

Delaying Social Security = Guaranteed 8% annual increase
Relying on your portfolio = Unpredictable market returns

Would you trade a safe, lifetime income increase for a speculative return that could vary wildly from year to year? We wouldn’t — and we don’t recommend you do either.

Two Overlooked Factors in Social Security Timing

Earnings History & Income Replacement - If you’re still working in your 60s, your earnings are likely higher than earlier in your career. Those extra years may replace lower-income years in Social Security’s 35-year calculation, increasing your benefit.
Spousal & Survivor Benefits - For married couples, claiming strategies must be coordinated. If the higher-earning spouse delays claiming, it can result in a larger survivor benefit for the other. This is especially important if one spouse has a significantly longer life expectancy.

Watch Out for Conflicted Advice - Even From Advisors Who Claim They Are a Fiduciary

Some advisors may push early Social Security claiming not because it's best for you — but because it’s better for them.

Here’s how:

If you delay Social Security, you may not need to withdraw from your investment accounts right away.
That means less assets under management, and potentially lower fees for your advisor.
So some “free financial plans” are designed to encourage early withdrawals — and early claiming.

It's not just a flawed financial recommendation — it's a conflict of interest.

Our Approach at Ark Royal Wealth Management

At Ark Royal, we take a conservative, client-first approach to financial planning. That means:

We build retirement plans based on realistic investment returns — not the most optimistic projections. We factor in the guaranteed value of delaying Social Security. We prioritize long-term success and sustainability over short-term gains.

Final Thought: Don’t Trade Certainty for Speculation

Social Security offers a rare opportunity: guaranteed income that grows over time. Don’t let flawed advice or conflicted incentives rob you of that benefit.

If you’re unsure about your Social Security strategy — or if a free financial plan seems too good to be true — let’s talk. Our team of Certified Financial Planners is here to help you make informed, confident decisions.

📞 Contact us at ark-wealth.com to schedule a consultation, 919-710-8665.