Key Takeaways
- Social Security is projected to face a funding shortfall by 2033. The program is expected to continue, though potentially at adjusted benefit levels.
- Delaying benefits beyond full retirement age increases monthly income by about 8% per year until age 70.¹
- Coordinating Social Security with your broader financial plan can improve tax efficiency and long-term income stability.
- Thoughtful planning, ideally with a trusted advisor, can help you adapt to future changes with confidence.
Social Security’s Role in Today’s Retirement Landscape
Social Security is a vital source of retirement income for millions of Americans. Even for people with substantial savings and investment portfolios, it provides something uniquely valuable: a predictable, inflation-adjusted income stream that lasts for life.
As of 2026, more than 67 million Americans receive Social Security benefits, underscoring its continued importance in retirement planning.
But the program faces long-term funding challenges. According to the latest projections, the Social Security trust fund is expected to be depleted around 2033. If no legislative action is taken, ongoing payroll tax revenue would only cover approximately 77% of scheduled benefits.²
While that may raise concerns, it’s important to remember Social Security is not expected to disappear. Instead, future adjustments are likely, and planning ahead can help you stay prepared.
A More Strategic Approach to Social Security Planning
Rather than viewing Social Security as a standalone decision, today’s retirees benefit from integrating it into a broader financial strategy.
This includes aligning your claiming decision with:
- Your retirement income needs
- Investment and withdrawal strategies
- Tax planning considerations
- Long-term goals for family and legacy
At Curi Capital, this type of coordinated approach is central to helping clients make more informed, confident decisions, especially in areas where policy and personal finances intersect.
The Benefits of Delaying Social Security
One of the most impactful decisions you can make is when to begin claiming benefits. The timing of this decision can have lasting effects on your financial security throughout retirement.
Increased Monthly Income
For each year you delay benefits beyond your Full Retirement Age (typically 66–67), your benefit increases by about 8% annually, up to age 70. ¹ This can result in a significantly higher guaranteed income stream over time.
Longevity Planning
Delaying benefits can serve as a hedge against living longer than expected, helping ensure that a portion of your income is protected regardless of market conditions.
Greater Long-Term Stability
Because Social Security includes cost-of-living adjustments (COLAs), a higher starting benefit can lead to meaningfully larger income over the course of retirement.
Benefits for Couples and Families
For married couples, and even some divorced individuals, Social Security offers opportunities to enhance total household income.³ Having a thoughtful conversation with your partner can significantly improve your short and long-term financial outcomes.
Spousal Benefits
For married couples, a spouse may receive up to 50% of the higher earner’s benefit at full retirement age. Coordinating when each spouse claims can help balance short-term income needs with long-term growth.
Survivor Benefits
If your spouse has passed away, the higher earner’s benefit becomes the survivor benefit. Delaying benefits can help provide greater financial security for a surviving spouse.
Divorced Spouse Considerations
If you were married for at least 10 years, you may be eligible to claim benefits based on your ex-spouse’s record. Many divorced people are unaware of this planning opportunity, which can be to their benefit without any additional cost to their former spouse.
Tax Considerations: An Often-Overlooked Factor
Social Security benefits may be subject to federal income tax, depending on your combined income. Understanding how these taxes are calculated can help you better manage your overall retirement income strategy.
Current Tax Thresholds
| Combined Income | Individual | Married Couple |
| 0% Taxable | Below $25,000 | Below $32,000 |
| Up to 50% Taxable | $25,000-$34,000 | $32,000-$44,000 |
| Up to 85% Taxable | Above $34,000 | Above $44,000 |
Because these thresholds are not indexed for inflation, more retirees are subject to taxation each year. For example, a couple whose income gradually rises from $30,000 to $35,000 due to modest withdrawals or cost-of-living increases may find that up to 50% of their Social Security benefits becomes taxable, even though their purchasing power has not meaningfully increased.
The Value of a Coordinated Plan
Social Security decisions don’t happen in isolation. They intersect with investment strategy, retirement income planning, tax efficiency, and estate and legacy goals.
Bringing these elements together in a cohesive plan can help ensure that each decision supports your broader financial picture. By approaching it strategically, considering timing, taxes, and coordination with your overall financial plan, you can make more informed decisions that support long-term stability and flexibility.
At Curi Capital, we believe in taking a holistic, personalized approach, helping clients navigate complex decisions like Social Security with clarity and confidence, while staying aligned with their long-term goals. A conversation with one of our trusted advisors can help you evaluate your options, identify opportunities, and ensure your plan remains aligned with your long-term goals.
Frequently Asked Questions (FAQ)
Will Social Security run out?
No. Even if the trust fund is depleted around 2033, ongoing payroll taxes are expected to cover about 75–80% of benefits ²
When is the best time to claim benefits?
It depends on your personal situation. Delaying benefits can increase monthly income, but the right decision should align with your broader financial plan.
Are Social Security benefits taxable?
Yes. Up to 85% of benefits may be taxable ⁴, depending on your income level.
How should Social Security fit into my retirement plan?
It should be coordinated with your investments, withdrawals, and tax strategy to create a more efficient and sustainable income plan.
When should I start planning?
Ideally, several years before retirement, when you still have flexibility to implement strategies that can improve long-term outcomes.
Citation
¹ Social Security Administration, “Delayed Retirement Credits,” accessed April 2026, https://www.ssa.gov/benefits/retirement/planner/delayret.html
² Social Security Administration, “A Summary of the 2024 Annual Reports,” Board of Trustees of the Federal Old-Age and Survivors Insurance and Federal Disability Insurance Trust Funds, accessed April 2026. https://www.ssa.gov/oact/trsum/
³ Social Security Administration, “Benefits for Spouses,” accessed April 2026, https://www.ssa.gov/family/spouse
⁴ Social Security Administration, “Income Taxes and Your Social Security Benefit,” accessed April 2026, https://www.ssa.gov/benefits/retirement/planner/taxes.html
Disclaimers
This article was originally written in August 2024 and most recently revised for accuracy as of May 2026.
The content contained herein was generated by Curi Capital with the assistance of an AI-based system to augment the effort.
The opinions and analyses expressed in this newsletter are based on Curi Capital, LLC’s (“Curi Capital”) research and professional experience are expressed as of the date of our mailing of this newsletter. Certain information expressed represents an assessment at a specific point in time and is not intended to be a forecast or guarantee of future results, nor is it intended to speak to any future time periods. Curi makes no warranty or representation, express or implied, nor does Curi accept any liability, with respect to the information and data set forth herein, and Curi specifically disclaims any duty to update any of the information and data contained in this newsletter. The information and data in this newsletter does not constitute legal, tax, accounting, investment or other professional advice. Returns are presented net of fees. An investment cannot be made directly in an index. The index data assumes reinvestment of all income and does not bear fees, taxes, or transaction costs. The investment strategy and types of securities held by the comparison index may be substantially different from the investment strategy and types of securities held by your account.
Certified Financial Planner Board of Standards, Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™ and federally registered CFP (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board’s initial and ongoing certification requirements.
