In physics, Newton’s Third Law of Motion states that for every action, there is an equal and opposite reaction.
The principle applies not only to science, but to economics, public policy, and retirement planning as well.
Every decision has consequences, and when those consequences are ignored, the reaction usually comes later — and often with greater force than expected.
In 2024 at the tail end of the Biden Administration, Congress changed the rules affecting Social Security recipients who had been subject to the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO).
For many retirees — particularly teachers, police officers, firefighters, and other public employees — this change resulted in higher benefits and the removal of reductions that they long had viewed as unfair.
For those directly affected, the change feels like a correction.
But when viewed through the lens of Newton’s Law, the question becomes unavoidable:
What will the reaction be?
Social Security was already facing financial pressure.
According to the most recent Trustees projections, analysts still expect the trust fund will face depletion within the next decade unless meaningful changes take place.
Eliminating WEP and GPO increased benefit obligations without addressing the underlying funding problem.
In simple terms, the action increased costs without strengthening the system.
Recent analysis shows that removing these provisions added billions in future obligations to a program that was already under strain.
Instead of repairing the foundation first, Congress chose to expand the structure sitting on top of it.
It reminds me of driving down a mountain road and realizing your brakes are failing.
Instead of slowing down or shifting into a lower gear, you decide to step on the gas.
It may feel better in the moment, but it does not improve the outcome.
For partisan political purposes, Congress stepped on the gas.
None of this means Social Security is going away.
But it means the margin for error is getting smaller, and the reaction to today’s decisions will eventually have to occur in some form — higher taxes, reduced benefits, delayed retirement ages, or some combination of all three.
One of the biggest mistakes I continue to see is people claiming benefits as soon as they can simply because they are afraid the system will not be there later.
That fear is understandable — but fear is not a plan.
Claiming early permanently reduces your benefits.
For married couples, it can also reduce the surviving spouse’s lifetime income.
In many cases, the cost of claiming too soon is greater than any future change Congress might make.
Good planning looks at the entire picture —
life expectancy, survivor benefits, taxes, market risk, health care costs, and income needs —
not just the earliest date a check can begin.
Newton’s Law reminds us that actions always produce reactions, even if the reaction does not come immediately.
The recent changes to WEP and GPO are a perfect example.
The action has already occurred.
The reaction has not yet arrived.
You cannot control what Congress will do next.
You can control how prepared you are when the reaction comes.
After nearly 50 years in the retirement planning business, I have learned that the goal is not to get the most this year —
it is to make the best decision for the rest of your life.
And the people who do best are usually the ones who plan ahead,
not the ones who react out of fear.
I look forward to seeing many of you next month and the Dallas Convergence Conference.
Always here for you,
David P. Zander
CFP Emeritus Board ™
dzander@back9pro.com
260-615-0078
