Will You Maximize Your Social Security Income? Or Choose Poorly? | Julia Lembcke

August 13, 2026

AI Summary

5 min read

In 1935, when Social Security was created, the average life expectancy was 61. Today, a 65-year-old man can expect to live to about 82 or 83, and a woman to 84 or 85. The system was never designed to pay benefits for two decades or more, yet that is exactly what it now does for millions of retirees. Certified financial planner Julia Lembcke, managing director of URS Advisory, joined Adam Taggart on Thoughtful Money to walk through the mechanics, the psychology, and the practical strategies for deciding when to claim—a decision with 96 possible starting months and enormous financial consequences.

How Social Security Actually Works

Social Security is a pay-as-you-go system funded primarily by payroll taxes: employees pay 6.2% of wages up to an annual cap ($184,500 in 2026), employers match that, and the self-employed pay the full 12.4%. The money goes into trust funds invested in U.S. Treasury securities, which then pay current retirees. Your benefit is calculated from your highest 35 years of earnings, and you need 40 work credits (roughly 10 years) to qualify on your own record. If you never worked, you can claim a spousal benefit equal to up to 50% of your partner's benefit at full retirement age.

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What you'll learn

1 (00:31) **Introduction & The 96-Month Decision** - Host Adam Taggart introduces CFP Julia Lembcke to discuss the complexity of Social Security claiming strategies.
2 (03:38) **Social Security Basics: How the System Works** - Julia explains the core mechanics of the program, including funding, eligibility, and benefit calculation.
3 (08:17) **The Insolvency Question: Should You Worry?** - Julia addresses the common fear that Social Security will run out before you can collect.
4 (15:52) **Working While Collecting: The Earnings Test** - Julia explains the rules and penalties for earning income before reaching full retirement age.
5 (19:50) **When to Take It: The Marshmallow Test** - The host and Julia discuss the general philosophy behind the decision to claim early or delay.
6 (25:48) **Case Study #1: The Split Strategy (High & Low Earner)** - Julia walks through a scenario with Joe ($3,500 benefit) and Lynn ($1,500 benefit) to show the power of a split strategy.
7 (32:35) **Case Study #2: The Non-Working Spouse** - Julia uses a couple (Bruce and Debbie) where Debbie has no earnings record to illustrate spousal benefits.

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Guests on this episode

Adam Taggart

Show Notes

WANT HELP WITH RETIREMENT PLANNING? SCHEDULE YOUR FREE PORTFOLIO REVIEW with Thoughtful Money's endorsed financial advisors at https://www.thoughtfulmoney.comWhen to take Social Security is more important, and more complicated, than most realize.There are plenty of ways to make a bad choice and miss out on $tens of thousands (or more) of income you could otherwise receive in retirement,.Julia Lembcke returns to explain how Social Security works and the most important considerations you need to take into account in determining when to take it.For a very practically useful breakdown of all things Social Security, watch this video.#socialsecurity #retirement #retirementincome _____________________________________________ Thoughtful Money LLC is a Registered Investment Advisor Promoter.We produce educational content geared for the individual investor. It’s important to note that this content is NOT investment advice, individual or otherwise, nor should be construed as such.We recommend that most investors, especially if inexperienced, should consider benefiting from the direction and guidance of a qualified financial advisor registered with the U.S. Securities and Exchange Commission (SEC) or state securities regulators who can develop & implement a personalized financial plan based on a customer’s unique goals, needs & risk tolerance.All the details on Thoughtful Money's relationship with the financial advisors it endorses, many of whom regularly appear on this program, can be found in the following documents. We highly recommend you review these documents as they cover the terms that will apply should you choose to work with one of these firms at any time after watching this video.Thoughtful Money Disclosure Document: https://thoughtfulmoney.com/disclosureThoughtful Money Agreement: https://thoughtfulmoney.com/agreementIMPORTANT NOTE: There are risks associated with investing in securities.Investing in stocks, bonds, exchange traded funds, mutual funds, money market funds, and other types of securities involve risk of loss. Loss of principal is possible. Some high risk investments may use leverage, which will accentuate gains & losses. Foreign investing involves special risks, including a greater volatility and political, economic and currency risks and differences in accounting methods.A security’s or a firm’s past investment performance is not a guarantee or predictor of future investment performance.Thoughtful Money and the Thoughtful Money logo are trademarks of Thoughtful Money LLC.Copyright © 2026 Thoughtful Money LLC. All rights reserved.