Does Conventional Wisdom on Social Security Fail Academics?
How to Maximize Benefits Alongside Your University Pension
by Chris Brown, Ph.D., CFP® and Ron A. Rhoades, JD, CFP®
Retirement planning for academics presents a unique financial puzzle that most conventional wisdom simply fails to address. Unlike many private sector retirees, professors often retire with a substantial defined benefit university pension – an income stream that fundamentally alters the role of Social Security in their overall retirement plan.
The common refrain – “always wait until age 70 to claim Social Security’”- may be sound advice for the average American, but does this one-size-fits-all strategy truly optimize wealth for the financially well-resourced academic? This article dissects the intersection of high earners, defined benefit plans, and spousal coordination to forge a truly optimized claiming strategy grounded in academic research and industry best practices.
In our latest downloadable PDF guide, “When to Claim Social Security: Does Conventional Wisdom Fail Academics?”, we take an in-depth look at how to maximize your Social Security benefits alongside your university pension.
But first, we look at the actual determinant of optimization – longevity. Your life expectancy is the critical variable in your Social Security decision. An individual who claims at 62 and lives to 95 will likely receive less in total lifetime benefits than if they had delayed claiming until age 70, whereas someone who claims at 70 but passes away at 75 will have received far less than if they had claimed at 62.
We’ll look at the factors in life expectancy, and review evidence-based tools to help you calculate your own life expectancy.
Next, we’ll ask a critical question:
What is the True Opportunity Cost of Delaying Benefits when Portfolio Assets are Substantial?
If you’ve managed to accumulate a substantial portfolio – through pension, IRAs, and other assets – Social Security may not be as necessary, thus prompting a delay in claiming in order to take advantage of the 8% annual increase in the Primary Insurance Amount from Full Retirement Age (FRA) up to age 70. But should you, an academic with more guaranteed lifetime income than most American workers, do this?
Conventional analyses favors delay in claiming benefits by assuming a near-zero discount rate on Social Security benefits (Tharp, 2025; Alleva, 2016). Applying the principles of finance, we analyze when delaying is optimal – and when it is not. We also look beyond the financial formulas, exploring scenarios where different types of risk apply.
Another key consideration is for married couples, who must assess which spouse should be the anchor for delay. Statistically, one spouse will outlive the other – and the claiming decisions made years earlier will determine whether the survivor enjoys financial security or faces a significant income reduction. By utilizing the survivor benefit maximization rule, coordinating the lower-earning spouse’s income, and analyzing joint longevity statistics, we can more effectively plan for survivor benefits and ensure that this transition is, at the very least, financially eased.
Finally, we look at tax considerations, including strategies like income smoothing and Roth conversions, as well as how your university pension impacts when you should claim Social Security benefits.
Ready to learn more?
About the Authors
Ron A. Rhoades, JD, CFP®
Ron Rhoades is an Associate Professor of Finance at the Gordon Ford College of Business, Western Kentucky University. He also serves as a financial advisor at Scholar Financial, a practice within XY Investment Solutions LLC. With a background as both an attorney and a CERTIFIED FINANCIAL PLANNER™ professional, Ron is a nationally recognized authority on the fiduciary duties of financial advisors.
Chris Brown, Ph.D., CFP®
Chris Brown is a faculty member in the Department of Finance at the Gordon Ford College of Business, Western Kentucky University, and a financial advisor at Scholar Financial, a practice within XY Investment Solutions, LLC. He holds the CERTIFIED FINANCIAL PLANNER™ designation and a Ph.D. in Finance. His research and teaching focus is on behavioral finance, retirement planning, and evidence-based investment strategies.
This article and the downloadable guide are for educational purposes only. Scenarios and references to client experiences are used solely to illustrate financial planning concepts. Dr. Eleanor Vance is a hypothetical client and is not directly representative of any current client of Scholar Financial of XYPN Sapphire. These examples may not apply to your individual circumstances. It should not be construed as financial, legal, tax, or investment advice, nor as a recommendation to implement any specific strategy, product, or investment. As a fiduciary, we provide advice tailored to each client’s goals and financial situation. Consult with a qualified financial professional before making investment decisions.
Advisory services are offered through XYPN Sapphire and its various IAR brands under which it operates. XYPN Sapphire is an SEC registered investment adviser. For additional disclosure and privacy information, please visit XYPNSapphire.com/disclosures.
