The Perfect RIA The Real Risks of Retirement With Derek Tharp
Apr 2, 2026
Derek Tharp, a financial planner and researcher with a PhD who writes on Social Security and retirement strategy, questions common rules about claiming benefits. He explores how assumptions and personal preferences shift the math. He argues for flexible claiming, clear client communication, and practical guardrails for real-world retirement risks.
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Delaying Social Security Is Not Always Best
- Delaying Social Security until 70 is not always the clear best choice for every retiree.
- Derek Tharp shows real-world risks and individual preferences can materially change the optimal claiming decision.
Opportunity Cost Requires Portfolio Returns Not Just TIPS
- Using a 0% real discount (TIPS-like) understates the opportunity cost for many retirees who draw from a 60/40 portfolio.
- A 4–5% historical real return on retirement assets can flip the math toward claiming earlier for some clients.
People Often Prefer Spending Early In Retirement
- Human preferences (utility) matter: many retirees prefer front-loaded consumption and value spending early over maximizing late-life checks.
- Survey data and client reactions show people light up at the idea of spending more when they're younger and healthy.