Social Security & PVP – Make it Wow not Bow-Wow

1) PVP & Life Insurance

• Refer to Social Security statements for examples. This couple has 2 children age 2 and 5. They each have Roth IRA’s and a Joint account. They would like $90,000 in Retirement.

• A limited amount of PVP information to explain the impact of Social Security when determining Life Insurance need.

1) PVP & Life Insurance cont.

• The resulting numbers show a lower amount of Life Insurance need and potential savings to the client for less premium.

• I included 2 years of Social Security to show how the numbers can change year to year, therefore the importance of your annual review of all information including Social Security.

2) Medicare and your tax return

• The handout includes a chart of Part B Monthly Premium.

• The Tax return example shows how taking money from other sources can prevent you from hitting the next level of what you pay in premium.

3) Bonus Info you may not know

• Requests for corrections to SS must be made 3 years, 3 months, and 15 days following the year in which wages were paid.

• As of May 2012 Social Security is no longer sending out statements if you are under 60yrs. Important to get on and review.

• Use SS statement to help when determining Disability Insurance.

3) Bonus info cont.

• The divorced spouse must have been married for at least 10 years and must not be remarried. A divorced spouse who is at least age 62 and has been divorced from the worker for at least two years can receive retirement benefits based on the worker’s earnings even if the worker continues to be employed.

Bonus info cont.

• The good news: Help is available. Start with the “Social Security Claiming Guide,” published by the Center for Retirement Research at Boston College. This 24-page look at (in the center’s words) “your most important financial decision” starts with a discussion of how much income you might need in retirement. The guide then reviews how much money you can collect from Social Security and provides answers to frequently asked questions.

Bonus info cont.

• Next, try the National Academy of Social Insurance and its “When to Take Social Security Benefits: Questions to Consider.” Here, the academy, a nonprofit research and educational group, uses a question-and-answer format to guide you through key issues.

Bonus info cont.

• Finally, if you’re looking for more personal help, some firms – for a fee – will walk you through specific claiming strategies. For example, Social Security Solutions offers two services. Its “Social Security Snapshot,” runs your numbers through three typical claiming situations. The company’s “Social Security Strategy Analyzer” – for $125 – runs multiple scenarios, recommends a best course of action in a report, and gives you a one-hour session with a retirement specialist to discuss the report and ask questions.