Social Security, Inheritance, and the Future of Retirement: What You Need to Know Now

Retirement isn’t just about saving money—it’s about knowing how to use it, protect it, and grow it at the right time. That’s why I was so encouraged by my recent deep dive into retirement planning, Social Security strategy, and the future of financial advice. Whether you’re a financial professional or just trying to secure your own retirement, these conversations offered powerful insights you need to hear.

Let’s start with George Nichols, President of the American College of Financial Services, who laid out the college’s mission: to equip financial advisors with applied, ethical knowledge to help people like you and me make better financial decisions. The college is the only independent, accredited institution in the U.S. solely dedicated to financial services education—and they’re doubling down on retirement planning. Their Horizons Conference in San Diego focused on giving advisors real tools and takeaways to improve their clients’ lives. I found it energizing to see this level of commitment to specialization and practical training in such a critical field.

The topic that dominated the room? Social Security—and for good reason. Experts including Eric Ludwig, Steve Parrish, Jeff Levine, and Jamie Hopkins raised some uncomfortable truths. Fraud is not the issue in the retiree portion of Social Security—the problem is funding. Right now, the system works efficiently (with overhead of just 0.3%) but is projected to face solvency issues by 2031–2033. To fix it, the solutions are well-known: raise the retirement age, increase taxes, or adjust the income cap. But politically, those fixes are hard sells.

Here’s why it matters: Social Security provides over half of retirement income for two-thirds of Americans. For one-third of retirees, it’s their only source of income. That’s a staggering reality, especially when you consider that many of those folks have less than $10,000 saved. Whatever your personal financial situation, this system is still a backbone, and it’s why strategic planning around when and how to claim benefits is so critical.

We also got into a fascinating—and slightly awkward—discussion about inheritance. Lucy from Wisconsin asked about planning her financial future based on a potential $100 million inheritance from her husband’s wealthy family. The problem? No one in the family will talk about the estate plan. My take—and Joe and Big Al agreed—was simple: Don’t plan your life around money you don’t control or understand. Live your life fully. Build your own financial foundation. And if that windfall does come? Great—you’ll be ready for it. If not, you won’t have wasted years waiting for something uncertain. When it comes to large estates, planning often involves charitable trusts, family partnerships, and advanced estate tax strategies—but unless you’re part of the planning process, it’s all speculation.

On a more tactical level, we had a great question from Bob, who’s trying to figure out when to take Social Security, whether to do Roth conversions, and how to handle Medicare planning. With $4 million in brokerage accounts and over $1.3 million in IRAs, Bob’s in a great position—but that doesn’t mean planning is simple. We recommended delaying Social Security until age 70, converting portions of traditional IRAs into Roth IRAs up to age 73 to reduce future required minimum distributions (RMDs), and going with a high-quality Medicare supplement plan. Managing tax brackets, IRMAA surcharges, and income sequencing is where real retirement planning earns its keep.

Another listener, aged 50 with $2.4 million, asked about retiring early and living off savings until age 70. We ran the numbers and found their proposed 4.2% withdrawal rate a bit too aggressive for comfort. A safer approach? Keep it closer to 3%, or around $70,000 a year, and consider part-time work to supplement income and reduce portfolio drawdown. Remember, early retirement sounds great—but making that money last 40+ years is a real challenge.

We wrapped the discussion with a powerful reflection on Social Security’s impact. Jeff Levine called it the most efficient financial instrument in U.S. history, and the numbers back that up. It’s reduced senior poverty dramatically and continues to deliver stable income to millions, even as other retirement vehicles fluctuate. That said, it’s not invincible, and demographic shifts mean we need to rethink and reform to protect its future.

So what’s the big takeaway from all this?

Retirement planning isn’t a single decision—it’s an ongoing process. Whether you’re navigating inheritance uncertainty, optimizing Social Security, converting Roths, or deciding when to retire, the answer isn’t “one-size-fits-all.” The right strategy is the one that integrates your goals, your resources, and the changing landscape around you.

Stay informed, stay flexible, and never underestimate the power of real planning over guesswork.

Intended for educational purposes only. Opinions expressed are not intended as investment advice or to predict future performance. Past performance does not guarantee future results. Neither the information presented, nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Consult your financial professional before making any investment decisions. Opinions expressed are subject to change without notice.

IMPORTANT DISCLOSURES:

• Investment Advisory and Financial Planning Services are offered through Pure Financial Advisors, LLC. A Registered Investment Advisor.

• Pure Financial Advisors, LLC. does not offer tax or legal advice. Consult with a tax advisor or attorney regarding specific situations.

• Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

• Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

• All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy.

• Intended for educational purposes only and are not intended as individualized advice or a guarantee that you will achieve a desired result. Before implementing any strategies discussed you should consult your tax and financial advisors.