Social Security and the Income Gap

Saturday, October 24, 2026

On this My Money is Safe show, Greg Elie and Patti Janes discuss how Social Security—originally intended as supplemental income—has become the primary or sole income source for many retirees, with nearly 70% facing poverty without it, creating an “income gap” relative to pre-retirement lifestyles. Using a $120,000-earning couple with $1 million in a 401(k) and about $78,000 in combined Social Security as an example, they illustrate the risk of a market crash widening that gap and recommend protecting assets via in-service rollovers into accounts with bonuses or guaranteed lifetime income riders.

Strategies include allocating a portion of savings (e.g., $500,000–$700,000) to safe vehicles that can generate 5–6.5% withdrawals or guaranteed income to close most or all of the shortfall while preserving principal. They also advise against automatically delaying Social Security to age 70, instead favoring earlier claims in many cases so the difference can be directed into protected, potentially tax-advantaged accounts that build living and death benefits for the surviving spouse—outperforming pure delay in longevity and survivor scenarios.

The hosts stress personalized planning around claiming age, earnings tests, divorce/survivor rules, inflation, and market risk, and invite listeners to call 1-800-297-5755 or visit mymoneyissafe.com for reviews and upcoming Social Security seminars.