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Smart Ways to Get More Social Security Income

Learn smart ways to get more Social Security income with advisor John/Jane Smith. Choose wisely from hundreds of income combinations. Understand the basics, strategies, and optimal election methods for increasing your income. Discover the rules, terms, solvency, and benefit calculations related to Social Security income. Explore six strategies for maximizing your benefits and make informed decisions that align with your overall financial portfolio. Don't miss out on potential benefits by electing too early or selecting suboptimal claiming methods. Plan for your future and ensure you receive the maximum Social Security income you deserve.

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Smart Ways to Get More Social Security Income

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  1. Smart Ways to Get More Social Security Income John/Jane Smith, Advisor 111.111.1111 (office) j.smith@xyzadvisor.com www.xyzadvisor.com

  2. Choose Your Income Election Wisely! • Choose wisely • 100’s of combinations • More important than ever

  3. John Smith, Advisor NOTE: This Presentation is not endorsed by Social Security Administration, nor are we affiliated with Social Security

  4. We’ll Learn… • Why file correctly very first time • 6 strategies for more income • Your best-fit claiming method

  5. Basics… • The “Octopus” • Terms • Solvency • Benefit calculation • Life expectancy

  6. The Octopus

  7. Assumptions & Terms • Rules, case studies presented herein apply to those of us born between 1943 - 1954 • SS - Social Security • FRA - Full Retirement Age, age 66. You get 100% of PIA • PIA – Primary Insurance Amount, monthly SS income if begun at FRA

  8. Assumptions & Terms • COLA – Cost of Living Adjustments • Primary Wage Earner - Spouse with higher PIA • Secondary Wage Earner - Spouse with lower PIA • LE - Life Expectancy

  9. IS IT SOLVENT?

  10. How is Income Calculated? • SS takes your highest 35 years earnings (zeros included) and applies wage index factor to adjust forward and translates to current dollars • The sum of these index adjusted earnings are divided by the total months (12 X 35=420) which generates your AIME (Averaged Index Monthly Earnings)

  11. How is Income Calculated? For example, if your AIME is $6,000, your PIA is: 2013 bend point formula

  12. Life Expectancy 13

  13. Life Expectancy Statistics Age-80: per 1000 females born in 1927, 620 remain Source: Social Security, Actuarial Publications, 2007 Period Life Table

  14. Six Strategies • Claim & get it right the first time • Don’t elect too early • If married, use your living spousal income benefit

  15. Six Strategies • If married, leverage the survivor benefit income stream • Compute your optimal benefit • Align your election strategy with your overall portfolio

  16. Strategy #1: Claim Correctly the 1st Time

  17. Strategy #2: Don’t Elect too Early

  18. Strategy #2: Don’t Elect too Early

  19. Strategy #2: Don’t Elect too Early • Monthly benefit by age, adjusted for inflation - Wait to claim, no inflation - Wait to claim, with inflation 62 66 70

  20. Strategy #2: Don’t Elect too Early Life Expectancy: 50% Chance of Living to . . . One of a Couple 92 Women 88 Men 85 Break Even 79 Cumulative Lifetime Income 21

  21. Strategy #2: Don’t Elect too Early • Social Security best-fit discussion • Consider life expectancy, single, married, needs…

  22. Strategy #3: Spousal Income Benefit Harness the power of little-known spousal income benefit

  23. Strategy #3: Spousal Income Benefit

  24. Strategy #3: Spousal Income Benefit

  25. Strategy #3: Spousal Income Benefit Spousal Income Benefit Rules… • Spouse at FRA gets 50% of other spouse’s PIA • Benefit reduced pro-rata, between 62 & 66 • (35% at age 62) • One spouse must claim (or file and suspend @ FRA) • for other spouse to collect

  26. Strategy #4: Survivor Income Benefit Plan for your surviving partner’s income stream

  27. Strategy #4: Survivor Income Benefit Jim & Linda Heartland $2,300 $300

  28. Strategy #4: Survivor Income Benefit Jim passes on; Linda gets… $2,300

  29. Strategy #4: Survivor Income Benefit Jim dies at 77 and Linda collects for 16 years to age 93

  30. Strategy #5: Compute Your Optimal Benefit Compute your optimal benefit

  31. Strategy #5: Compute Your Optimal Benefit Timing… PIA, life expectancy, relationship history, financials

  32. Strategy #5: Compute Your Optimal Benefit

  33. Strategy #5: Compute Your Optimal Benefit

  34. Strategy #5: Compute Your Optimal Benefit Case Study 1: The Metros “Claim Some Now, More Later” Case Study 2: The Heartlands “File and Suspend”

  35. Strategy #5: Compute Your Optimal Benefit Case Study 1: The Metros

  36. Strategy #5: Compute Your Optimal Benefit Case Study 1: The Metros Claims age 68 $2307 for life (Bob’s PIA = $2000) Collects $1000 between 66-70, Full benefit at 70 $2904 for life

  37. Strategy #5: Compute Your Optimal Benefit Case Study 1: The Metros

  38. Strategy #5: Compute Your Optimal Benefit Case Study 2: The Heartlands

  39. Strategy #5: Compute Your Optimal Benefit Case Study 2: The Heartlands Age 66, files and suspends Age 70, collects $3,036 for life...Age 77, dies Age 63, collects $825 After Jim dies... Ages 73-92, Collects $3,036

  40. Strategy #5: Compute Your Optimal Benefit Case Study #2: The Heartlands

  41. Strategy #5: Compute Your Optimal Benefit Case 3a: Sally Solo, Single

  42. Strategy #5: Compute Your Optimal Benefit

  43. Strategy #5: Compute Your Optimal Benefit How Sally Single Maximizes Her Social Security Income LE = age 88, age 70 = $481,536, age 62 = $376,584 Cumulative Lifetime Income 44

  44. Strategy #5: Compute Your Optimal Benefit Case 3b: Sally Divorced • Married > 10 years • Ex-husband PIA = $2,000 • Takes ex-spousal income • benefit then switches • to own

  45. Strategy #5: Compute Your Optimal Benefit $1,000 monthly ex-spousal income Switch to own benefit at 70

  46. Strategy #5: Compute Your Optimal Benefit

  47. Strategy #5: Compute Your Optimal Benefit Case 3c: Sally Widowed • Married > 9 months • Deceased husband’s • PIA = $2,000 • Takes survivor benefit • then switches to own

  48. Strategy #5: Sally PIA = $1,600deceased spouse PIA = $2,000 Switch to own benefit at 70

  49. Strategy #5: Compute Your Optimal Benefit

  50. Strategy #5: Compute Your Optimal Benefit Case 3 Summary • Sally Single • Sally Divorced • Sally Widowed

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