OasisLMS

Delaying Social Security is often presented as the “safe” choice for maximizing retirement income, but the real world is messier than the models suggest. Common analyses ignore or downplay a range of under-appreciated risks—including mortality, sequence of returns, policy changes, declining health span, loss of spending flexibility, and behavioral underspending—that can make delaying benefits a far riskier choice for many retirees. This session takes a critical look at the prevailing research, explains why a 0% discount rate is rarely appropriate, and provides a framework for evaluating Social Security claiming strategies that reflects both opportunity cost and client-specific risks. Attendees will leave with tools to guide more personalized, utility-based decisions—helping clients avoid the hidden pitfalls of waiting too long to claim.

1. Recognize the key, often-overlooked risks - such as mortality, sequence‑of‑returns, policy shifts, and health-span decline—that are typically omitted from “delay‑until‑70” Social Security analyses.
2. Evaluate how applying a 0% discount rate distorts claiming recommendations and adjust analyses to reflect appropriate opportunity costs and client-specific risk factors.
3. Apply a risk‑adjusted decision framework to determine when early Social Security claiming may offer superior financial, behavioral, or quality‑of‑life outcomes for individual clients.

Derek Tharp, Ph.D., CFP^®, CLU^®, RICP^®