The Social Security Play Most Wealthy Families Overlook (And Why It Still Matters More Than You Think)

By Bob Moses | Altum Wealth Alliance

Social Security. Just reading those words might bring to mind a generic government program, something necessary for others but irrelevant for someone with your level of success. Many of the families and business owners we work with feel Social Security's a box that’s already been checked or one that doesn’t apply.

Ignoring Social Security could be a six-figure mistake. Even for high earners with significant assets, Social Security plays a critical role in a well-designed retirement plan. When aligned properly with a broader wealth strategy, it becomes a quiet engine of tax efficiency, legacy support, and income security.

Let’s talk about how.

Why Social Security Still Belongs in the Plan

In 2025, the maximum monthly benefit for someone claiming at full retirement age is over $3,800. Waiting until 70 can push that well past $4,600. Multiplied over a 20 or 30-year retirement and possibly doubled for couples, this becomes a meaningful stream of income.

This isn't just income. It's inflation-adjusted, government-backed, and guaranteed for life. Used properly, Social Security can ease pressure on other portfolio assets, reduce taxable withdrawals, and give more breathing room to legacy planning.

Social Security also acts as a psychological safety net. Many clients, even those with substantial portfolios, appreciate knowing that part of their income isn’t exposed to market volatility.

What Smart People Get Wrong

We’ve worked with successful professionals and business owners throughout Atlanta, Hilton Head, and Savannah. Several patterns tend to repeat themselves:

1. Claiming Too Soon

Filing at 62 is tempting. After all, it’s available. However, claiming early locks in a permanent reduction of up to 30 percent. That could result in hundreds of thousands in lost benefits. For those with long life expectancies or who want to leave a larger financial legacy, patience often pays.

2. Ignoring Spousal and Survivor Benefits

Married, divorced, or widowed individuals may have opportunities tied to a spouse’s work record. Couples often miss out on optimizing joint lifetime benefits or enhancing income for a surviving spouse.

3. Missing the Tax Planning Angle

Social Security benefits may be taxable, depending on other income sources. Up to 85 percent could be taxable. With smart planning, like well-timed Roth conversions or withdrawal sequencing, that tax burden can be reduced.

4. Failing to Coordinate Across the Plan

Claiming Social Security shouldn't happen in isolation. Timing affects how long investment accounts last, when to start IRA withdrawals, and how your annual tax liability plays out.

This Isn’t Just About Numbers

Social Security might seem like a numbers game, although it often has emotional weight. Widows relying on a spouse’s benefit, business owners coordinating exits to boost benefit calculations. These aren't just data points. They're real lives.

Delaying Social Security can improve survivor benefits. When the higher earner waits until age 70, the surviving spouse receives a larger benefit. This strategy can significantly improve a widow or widower’s financial security.

When It Makes Sense to Claim Earlier

Waiting isn't always best. Clients facing health challenges or an early retirement gap may benefit from filing sooner. The key is to plan with intention, not assumption.

A custom strategy, based on personal circumstances, is far more effective than any rule of thumb.

Business Owners: Pay Attention Here

Business owners and self-employed professionals often report low wages for tax reasons. That can limit Social Security benefits down the road.

Planning income in the final working years may help. Higher earnings late in your career can replace lower years in the 35-year benefit calculation, resulting in a higher monthly payout for life.

The Right Questions to Ask Now

Instead of defaulting to conventional wisdom, explore questions like:

• How does Social Security interact with our overall income strategy?

• What're the tax implications of claiming now versus later?

• How does this decision affect our heirs or surviving spouse?

• Could delaying benefits create opportunities in other parts of the plan?

These aren't just technical questions. They're about making sure every element of your plan works toward your goals.

How Altum Helps You Put the Pieces Together

At Altum Wealth Alliance, Social Security's treated as a core component of your wealth strategy. We look at everything, including investments, estate plans, charitable giving, insurance, and taxes. Then we ask how each part can support the rest.

We collaborate with your CPA and legal advisors to make sure your claiming strategy enhances, rather than conflicts with, your long-term vision.

Many people mentally file Social Security under "I'll figure it out later." A review today could lead to smarter decisions, a stronger legacy, and greater peace of mind.

We’re ready when you are.