Social Security Timing Benefit Cuts Calculator
Market volatility and high unemployment caused by the pandemic has left many people nervous about the future of the Social Security system. In fact, the influx of new Social Security claimants, in addition to the reduced income from fewer people working, has some experts estimating that the Social Security system will run out of funds as early as 2029 –rather than 2035 as the last Social Security Trustees report indicated. To help you answer your clients’ biggest questions about benefit cuts, we’ve updated our Social Security Timing software.
You can now show clients how Social Security benefits cuts will impact their decision about when to claim with the Social Security Timing benefit cut feature. Illustrate the total lifetime Social Security benefit with and without benefit cuts.
- Click on the folder labeled "Social Security" on the client information page.
- The section labeled "Benefit Cut" allows you to add the year the benefit cuts occurs and the percentage that the benefit will be cut by. The default is the year (2034) and percentage (24%) outlined in The 2020 Annual Report of the Board of Trustees.
- Check the box next to "Include in Social Security Timing Report?" if you'd like to add the benefit cuts information to pdf.
- View the impact of the benefit cuts by select the benefit cuts option located to the right of the "Full Benefits Projection." Move back and forth between strategies.
The cashflows within the benefit cut illustration will show reduced benefits starting in the year you indicated on the client information page.
When it comes to retirement income, every dollar counts especially right now. A smart Social Security claiming decision can make a huge difference toward helping your clients meet their retirement goals. Don't forget to share our free consumer-facing Social Security benefit cut calculator with clients and prospects to start a conversation about the impact of potential benefit cuts.
See the how you can demonstrate the impact of benefit cut using Income InSight here.