5 Key Signs Your Social Security Strategy Needs an Urgent Update
Written by
Jordan Rosenfeld
Edited by
Molly Sullivan
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Social Security is one of the most important sources of income in retirement for most Americans, and for many, is even their only retirement plan. With the average Social Security benefit, as of January 2025, at only $1,976 per month, if you were planning on relying on Social Security as your primary source of income in retirement, your plans may need an update, according to Josh Anderson, president and CEO of Eagle Legacy & Financial.
Social Security benefits were designed primarily to keep as many Americans as possible above the poverty level during their retirement years, he pointed out, not to retire luxuriously on.
To make sure you don’t find yourself at the retirement stage unprepared, Anderson and other financial planners offered some key signs that you can address well before then.
You Plan To Depend On Social Security for All Things
“Retirement isn’t a race to the finish line — it’s more like a marathon, and your Social Security strategy is the hydration station,” said James Francis, CEO of Paradigm Asset Management. “Don’t wait until you’re parched to realize you need a better plan.”
If you’re thinking that Social Security will support you when you retire, you might want to rethink that, Francis said. “Having other retirement funds, including a 401(k) or an IRA, will help you feel better since you are not totally dependent on one source.”
Giving yourself multiple retirement income sources helps you build the strongest security net if something happens to one.
You Haven’t Considered Delaying Benefits
Something many retirees don’t realize until it’s down to the wire is that starting Social Security particularly early might mean you are foregoing other possible sources of income, Francis said.
“Putting off your benefits could help you increase your monthly payments. Consider letting your dough rise before baking the ideal loaf of bread, patience indeed yields results.”
Spousal Benefits Have Slipped Your Mind
For married individuals, Social Security provides a little more incentive. Your spouse could be eligible for benefits on your record — and you on theirs.
“If this is not something you have investigated, you could be failing to get some additional money,” Francis said.
You’re Not Aware You May Be Entitled To Benefits Even If Divorced
Marriage isn’t the only circumstance in which you can get funds based on a spouse’s Social Security benefits, according to Melissa Murphy Pavone, CFP and founder at Mindful Divorce Partners. Divorced people who were married for at least 10 years may be eligible for spousal benefits based on their ex-spouse’s work record — without affecting the ex-spouse’s benefits.
“Many divorcees miss out on this opportunity, especially if they remarry too soon or claim their own lower benefit first,” she said.
If you were married for at least 10 years, check if your ex-spouse’s benefit is higher than your own — you may be able to claim up to 50% of their benefit, she pointed out.
Additionally, if your ex has passed away, you may be eligible for survivor benefits (100% of their benefit), even if you’re divorced.
You Haven’t Considered Life Insurance Policies
Another sign you need to reconsider your Social Security strategy is if you haven’t even considered adding in a life insurance product, such as an indexed universal life insurance policy, Anderson said.
“[These] can provide several key protections that can help people both plan for income needs in early retirement but also insure against risks caused by the untimely death of a spouse or provider,” he said.
Additionally, a well-designed and properly funded life insurance policy might provide additional living benefits such as a chronic illness or terminal illness rider, he explained.
“These riders can provide nontaxable income or advances on the death benefits should the insured become disabled.”
The cost of retirement or even the shock of a forced early retirement can be very difficult financially when care and medical costs skyrocket due to illness or injury causing disability. A life insurance policy that includes living benefits can help plan for this unexpected need for income in retirement.
Most importantly, Social Security is not a one-size-fits-all solution, Pavone said, and should be tailored to your individual needs and status, taking into consideration such things as marital status, longevity expectations, tax situation, your investments and cash flow needs.
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