Artificial intelligence is everywhere.
You can ask a chatbot almost any question and get an answer in seconds. Questions like:
- When should I take Social Security?
- Should I claim benefits at age 62?
- Will Social Security still be there when I retire?
- Is it better to wait until age 70?
The answers come quickly.
The question is: should you trust them?
The Fact Check
AI can provide information about Social Security rules. It can explain claiming ages, earnings limits, survivor benefits, and other retirement concepts.
What AI cannot do is understand your entire situation.
That’s important because Social Security decisions are rarely one-size-fits-all.
The best claiming strategy depends on factors such as:
- Whether you are married
- Your spouse’s retirement income
- Your health
- Whether you are still working
- Other retirement assets
- Your long-term retirement goals
The same recommendation may be appropriate for one person and completely wrong for another.
“I’m Taking Social Security at 62”
One of the most common statements retirees make is:
“I’m taking Social Security as soon as I’m eligible.”
For most people, that means age 62.
Can you do that?
Absolutely.
But before making that decision, it may be worth asking a few questions.
If you’re married, how could an earlier claiming decision affect your spouse?
Would a larger benefit later provide additional income protection for a surviving spouse?
Are you still working and earning income?
These factors can change the outcome significantly.
What If I’m Still Working?
Many people are surprised to learn that claiming Social Security before Full Retirement Age while continuing to work can affect benefits.
The Social Security Administration applies an earnings test for individuals who have not yet reached Full Retirement Age. If earnings exceed certain limits, a portion of benefits may be withheld.¹
This doesn’t mean benefits are lost forever, but it does mean your claiming strategy should account for your employment plans.
A chatbot may know the rule.
It may not know you’re planning to work another three years.
“It’s My Money and I Want It Now”
This is another common argument.
And it’s true.
You earned Social Security benefits through payroll taxes paid during your working years.
The challenge is deciding whether taking benefits earlier or later may better support your retirement goals.
The answer depends on your situation.
For some retirees, claiming earlier may make sense.
For others, delaying benefits could provide greater lifetime income or additional survivor protection.
There is no universal answer.
Will Social Security Be There?
Another question we hear frequently is:
“Will Social Security still exist when I retire?”
The Social Security program does face long-term funding challenges. According to the Social Security Trustees Report, changes may eventually be needed to address projected funding gaps.²
However, Congress has historically made adjustments to Social Security over time.
Future changes are possible.
Exactly what those changes will be remains uncertain.
That uncertainty alone should not drive a claiming decision.
Instead, retirees may benefit from evaluating multiple scenarios as part of a broader retirement plan.
Information vs. Planning
Artificial intelligence can be a useful tool for learning.
Articles, podcasts, calculators, and chatbots can help explain retirement concepts.
But there is a difference between information and planning.
Information is general.
Planning is personal.
A retirement decision that affects the rest of your life deserves more than a generic answer.
The question is not what most people should do.
The question is what makes sense for you.
Bottom Line
AI can help you understand Social Security.
It cannot understand your goals, your family, your income needs, or your retirement priorities.
Before making a Social Security claiming decision, consider how that choice fits into your overall retirement strategy.
Because retirement planning is not about what works for everyone else.
It’s about what works for you.
ABOUT THE AUTHOR
Micah Shilanski, CFP®, is a distinguished financial planner known for his deep commitment to providing exceptional advisory services to his clients. As the founder of Plan Your Federal Retirement, Micah has dedicated his career to helping federal employees understand and optimize their benefits to help ensure a secure and prosperous retirement. His experience is widely recognized in the industry, making him a sought-after speaker and educator on financial planning and retirement strategies.
Micah’s approach is client-centered, focusing on creating personalized strategies that address each individual’s unique needs. His work emphasizes the importance of comprehensive planning, incorporating aspects of tax strategy, investment management, and risk assessment to guide clients toward achieving their financial goals.Floyd Shilanski (00:25.437)
I don’t know about you, but I always thought artificial intelligence.
Floyd Shilanski (00:29.293)
Was a rather new thing to come around. However, do you know that AI, artificial intelligence go all the way back to 1980? I didn’t know that. So now we have AI, artificial intelligence, algorithms doing all kinds of crazy things for us. And I want to talk to you today about those algorithms.
Floyd Shilanski (00:51.629)
Hi, Floyd Shilanski with plan your federal retirement. The crazy things with AI and algorithms is that we put into Chat GPT or Perplexity or one of those other, you know, infamous AI bots, and we ask them the question: when should I take Social Security? Question mark. Will Social Security be there? Question mark. All these variants things. When’s the right time? And it’s amazing as I do my morning reads, whether it’s the Wall Street Journal, whether it’s
Floyd Shilanski (01:17.123)
The New York Times, whether it’s USA Today or any other mirrored information, everyone’s trying to tell me when to take Social Security. Now, interesting. You’d heard me say this an awful lot. The crazy thing about magazines or podcasts or bots or AI is sometimes we don’t know who they’re talking to. And one of the most challenging things I believe is when a client says, Floyd, tell me, how do I compare with people my own age, people getting ready to retire?
Floyd Shilanski (01:47.446)
And I always look at them and go, what does it matter about them? What it really and truly matters is about you. So when you think about that, I’m going to turn on my Social Security as soon as I am eligible. Well, currently that happens to be age 62. And okay, you can do that. But if you’re married and you have a spouse and you’re turning on Social Security earlier, you’re actually taking away from that spouse’s future earnings. Is that really what you want to do? I don’t know. Maybe it is.
Floyd Shilanski (02:16.268)
You’re still working. And as you’re working, you have these limitations with Social Security. If you make too much, we actually take some back. Is that what you want to do? And I love this one, Floyd. It’s my money and I want it now. It may not be there in the future. You’re right on both occasions. It is your money. You can have it now. But I don’t know if it’s going to be there in the future. So good question. So let’s talk about probabilities, right?
Floyd Shilanski (02:43.116)
Since Social Security was enacted so many years ago under the President Roosevelt, one of the things that he was looking for was giving some type of a security for the future. And that was done through Social Security. But unfortunately, over the years since this took place, it’s ran into shortfalls. And every time Congress, the Senate, or elected congressmen waited until almost the last minute to make some changes. All right. Now, most recently under the prior administration, Mr. Biden.
Floyd Shilanski (03:11.104)
Attempted to shore up Social Security by bringing in an additional tax for anyone that makes over $400,000 a year. You ever wonder why they choose these lofty numbers like let’s get millionaires, let’s get billionaires. If you’re making over $400,000 a year, let’s get them. And the answer is very simple. Most working people would say, yes, go tax the rich. All right. So I get that. But regrettably, there’s just not enough.
Floyd Shilanski (03:38.021)
database there for that to make a significant difference. Now they’re going to change Social Security, that I promise you. Are they going to take it away? I don’t think so, but they are going to make changes. Now, before we get into changes, and I’ve talked about those an awful lot before, let’s just come back to the first question. Who are you going to trust to provide information to you to make a decision that will affect the rest of your life? Artificial intelligence or intelligence? A chat box?
Floyd Shilanski (04:06.478)
Or a chat with a professional that understands Social Security. Hey, my name is Floyd, and I’ve said so many other times before. If you want to know that information, talk to someone that’s quote, impartial, and I do believe we are, log on to plan your federal retirement, log on, request a consultation with myself, with Micah, with Jamie, with John, with Christian, with Luke, someone and say, hey, I don’t know what to do. Help, and that’s what we’re here for. Our role is to try to help one million federal employees.
Floyd Shilanski (04:34.986)
One million additional federal employees make smart choices about the retirement. I’m Floyd. Until next time, happy planning.