Slide 16: 

• Now that we’ve covered some basic information, let’s move on to the now-current Social Security claiming rules, and most importantly, some of the common mistakes we see. 

• Some individuals and couples claim too early, meaning they are left living on less than optimal benefits later in life. Some claim too late, meaning they could have enjoyed more income earlier in retirement without sacrificing later retirement income. 

• Some retirees leave “free money” on the table because they fail to take advantage of, or optimize, their spousal or survivor benefits. 

• Perhaps the most common pitfall we see is not re-evaluating your claiming decision each year. Your decision either to take or defer your Social Security benefits is not always irreversible. In some instances, you can make an alternative decision down the road that may help improve your retirement income situation. These types of situations are best addressed on a case-by-case basis. 

 

Slide 17: 

• In general, we see two broad approaches taken when individuals and couples consider the Social Security decision. 

 

 

• The first is a more conservative approach which is best described by the cliché: “a bird in the hand.” Which means take Social Security benefits as soon as you are eligible or as soon as you retire because it’s available and it continues a stream of income. In some instances, this may be a good decision. But it often locks the recipient into a lower income stream and lower lifetime benefits overall. 

• In many cases, a more strategic approach serves the retiree better. You would identify what is unique about your situation, your retirement income needs, and your family’s needs and health concerns. Armed with those facts, develop a comprehensive claiming strategy that helps meet those critical objectives. 

 

Slide 18: 

• As you begin thinking about your benefit decision, here are some key issues to be discussed both initially and in your annual review of your Social Security strategy: 

• Health. What is your outlook for your health through your retirement? Has your health situation changed? This can affect whether you accelerate or defer your decision to claim benefits. 

• Longevity. What is your family history in terms of life expectancy? Have your parents and grandparents enjoyed lengthy, active, healthy lives? Or is the opposite true? Again, this will affect your claiming strategy. 

• Genuine need. Based on your investment portfolio and expected retirement expenses, how much will you be relying on Social Security benefits to meet your everyday needs? Would you be better served by a delay in claiming your benefits and allowing them to grow for some years? 

• Current investment climate. Your Social Security benefits grow at a stated percent per month. You’ll want to compare that rate with the potential returns your investment portfolio can provide. You’ll find we have a handy tool to help guide this decision. 

• Quality of life. You want to optimize your quality of life, especially during retirement. You’ll need to weigh whether having the extra income from Social Security benefits now is more important or allowing those benefits to increase by waiting to claim until later better suits your needs. 

• The overarching theme here is this: Let’s discuss what goals you (and your spouse, if married) are trying to achieve for both your Social Security benefits and your overall retirement income plan. 

 

Slide 19: 

• You may have heard of some common Social Security claiming techniques, such as “file and suspend,” sometimes referred to as “claim and suspend” And you have probably heard that these techniques were changed in 2015. 

• So let’s take a closer look at how those changes affected some of the more common claiming techniques, and the strategies that are still available for you. 

 

Slide 20: 

• Two key areas of change focus on the restricted application and file-and-suspend strategies. Let’s take a look at each of these. 

• The first key fact about the changes is that when you reach age 62 and when you reach full retirement age will affect which claiming alternatives are available. You’ll see that there are four key groups of affected persons: 

• Those who reached age 66 by April 2016 (and did or did not elect to file and suspend) 

• Those who were age 62 in 2015 or earlier ― so are already age 62 

• Those who turn age 62 in 2016 or after 

• Let’s first at look at whether a person in each of those three groups can file a restricted application for Social Security benefits. What is a restricted application and what would be its benefit? 

• A restricted application allows you to restrict your application for benefits to only a spousal benefit (we discussed those earlier) based on someone else’s earnings record. While you would receive that spousal benefit, your own retirement benefit could earn delayed retirement credits and grow over several more years 

 

Slide 21: 

• I have access to a Social Security Calculator to help illustrate the various scenarios available to you. Once we’ve identified the appropriate facts, we can create a personalized illustration for you and your spouse. The report illustrates several potential strategies you can consider and suggests one that seems most appropriate for your specific situation. We’ll then factor these results into your overall retirement income plan. I encourage you to schedule an appointment with me soon to review these strategies. 

 

Slide 22: 

• Looking at these scenarios can help individuals and couples maximize their expected benefits. These strategies should be reviewed annually to make sure it is still optimal as the market and your situation evolve. 

 

Slide 24: 

I want to remind you to schedule an appointment soon to discuss what you’ve learned here today and begin developing your specific Social Security strategy. 

We always want to talk with you. 

As always stay happy, safe, and healthy and hopefully we will see you very soon.