For many retired Americans, Social Security is a crucial source of income. The extensive rules and regulations surrounding the program can make finding the right time to claim incredibly difficult. Our new white paper titled, Is Time Running Out on Social Security?, examines the complexity of the Social Security system and the program's future given the well-established funding problems. The paper outlines how advisors can add significant value by helping clients determine the optimal time to claim benefits for their unique situation.
"Most people have multiple sources of income in retirement, which can impact the decision about when to claim Social Security."
Spousal benefits, widow(er) benefits, longevity, age, and different types of retirement income can significantly impact a claiming decision. This white paper outlines the various factors you need to consider before determining Social Security benefits. Calculating the taxes on Social Security benefits is another crucial component to a sound claiming strategy. The white paper includes a helpful chart for navigating the provisional income formula. Case studies take a more in-depth look at the widow(er) benefit and the impact of potential Social Security benefit cuts.
Many experts have suggested that Social Security may run out of funds even faster than expected due to reduced income from fewer people working and the influx of new Social Security claimants.However, claiming early out of fear that "Social Security won't be there" can cause retirees to miss out on a more considerable benefit. The white paper explains why Social Security will continue to be an essential retirement income stream, and how, for many people, claiming early can have a lasting negative impact.
"The magnitude of the changes required are not trivial but also are not insurmountable. Even if no changes were made, the system would still be able to pay 76 cents of each promised benefit dollar based on then-current tax revenue. In short, people should not elect early out of fear that Social Security will not be there."
Learn how to alleviate your clients' concerns about Social Security, communicate the value of a sound claiming decision, and help optimize claiming strategies. Download Is Time Running Out on Social Security?