1. Presented by: Insert Name Here

2. AGENDA Social Security Basics Claiming Options SSI Maximization Strategies Real-Life Case Scenarios Maximizing Your SS Benefit Questions/Comments

3. INITIAL THOUGHTS This presentation is designed to assist you in exploring the available options you have to maximize your Social Security. This presentation is not intended to be a retirement, benefit, or estate plan nor is it a specific recommendation for a retirement, benefit, or estate plan. This material is for informational purposes only. Many of the topics presented may also involve legal, tax, accounting or other issues, which there is absolutely no intention of offering such advice, and this presentation and any other oral or written communication should not be construed as such. Maximization strategies can be complicated and vary depending on individual situations so individuals interested in this topic should consult a Social Security representative. As you explore your Social Security situation, we hope that you find this presentation useful.

4. THE SIGNIFICANCE OF SS For Americans age 65 and older with a household income of $57,957 or more, SS provides about 42% of incomeⁱ The four most important sources of retirement income for Seniors age 65 and olderⁱⁱ are: ⁱ Income of the Population 55 or Older, 2010, Social Security Administration, 2012 ⁱⁱ The 4 Most Important Sources of Retirement Income: US News, Emily Brandon, March 22, 2012

5. WHO IS ELIGIBLE? A worker who has accumulated a minimum of 40 work credits (approx. 10 years of work) Benefits based on average of the 35 highest years of earnings A spouse or someone married for at least 10 years to an eligible worker

6. WHEN CAN YOU CLAIM? The benefits are on the age when they are claimed Earliest age is 62 Latest age is 70 Full Retirement Age – an important concept also known as “FRA” Currently 66 to 67 - depending on your year of birth

7. HOW CAN YOU CLAIM? Create an Account on: http://www.ssa.gov/myaccount/

8. CLAIMING AGE AFFECTS MONTHLY BENEFITS Age 62 – monthly benefits will be reduced by 25%-30% depending on your year of birth FRA (66-67) – entitled to 100% of full benefit Age 70 – monthly benefit could be as much as 132% of full benefit

9. CLAIMING AGE AFFECTS MONTHLY BENEFITS

10. OPTIMIZING BENEFITS BY DELAYING START DATE Benefits at Age Start Benefit Age7075808590 62$144,000$234,000$324,000$414,000$504,000 64$124,776$228,756$332,736$436,716$540,696 66$96,000$216,000$336,000$456,000$576,000 68$55,680$194,880$334,080$473,280$612,480 70$0$158,400$316,800$475,2000$663,600 *FRA of 66 with full retirement benefits of $2,000/ month and no COLA. For Illustrative purposes only

11. WORKING IN RETIREMENT A portion of your Social Security benefits could be reduced if you claim before your FRA and continue to work For 2014, if you claim between age 62 and FRA, your benefits will be reduced by $1 for every $2 above $15,480 earned Example: If someone earns $20,480 ($5,000 over limit), their benefits would be reduced by $2,500

12. HOW IS SS TAXED? Depends on your “combined income” or “provisional income” Combined income is: Your adjusted gross income (AGI) Any tax-exempt interest you earned 50% of your SS benefits Taxable portion of Social Security is the minimum of three amounts 85% of Social Security benefits 50% of benefits plus 85% of combined income beyond second threshold amount 50% of combined income beyond first threshold plus 35% of combined income beyond the second threshold

13. THE TAX THRESHOLDS

14. SSI MAXIMIZATION STRATEGIES

15. SPOUSAL BENEFIT Spouse must be age 62 or older to qualify Worker must first file for Social Security benefits If spousal benefits are claimed at spouses FRA, the spousal benefit is half of the spouse’s primary insurance amount (PIA) Spousal benefits are permanently reduced if claimed before reaching FRA If you elect to take your spousal benefit at your FRA, you can delay receiving your worker based benefits on your work history and switch to your benefit later to increase the monthly benefit you will receive

16. “FILE AND SUSPEND” STRATEGY This strategy can be done when the higher earning – or older – worker reaches FRA You file for Social Security benefits to enable your spouse to receive the spousal benefits The higher earning – or older – worker immediately suspends their own benefits and they can continue to earn additional retirement credits until age 70

17. SOCIAL SECURITY BENEFITS AND DIVORCE As a divorced spouse, you may be entitled to Social Security benefits based on the ex’s work record if: You were married for at least 10 years You are unmarried (doesn’t matter whether ex has remarried) Your own worker benefit would be lower than your ex- spouse’s benefit

18. SURVIVOR BENEFIT The earliest a widow(er) can start to receive Social Security benefits is age 60 If you receive survivor benefits starting between age 60 and your FRA, the benefits are reduced by a percentage If your own benefits are more than your survivor benefits, you can select your own benefits instead, but not both

19. OTHER SOCIAL SECURITY TOPICS There are many other factors not discussed dealing with Social Security. Some include: If you work for a federal, state or local government agency you may be eligible for a pension based on earnings not covered by Social Security. This can affect the amount of your Social Security benefit Taxation of your Social Security benefits Disability benefits

20. REAL-LIFE CASE SCENARIOS

21. Example using file and suspend strategy EXAMPLE 1 - CLIENT SUMMARY

22. EXAMPLE 1 - SUGGESTED STRATEGY David files for his benefits at full retirement age 66 and 4 months and suspends until age 70 Julie files for spousal benefits at age 66 and 8 months (her FRA) Julie begins to take her benefits at age 70 Lastly, Julie receives survivor benefits

23. EXAMPLE 1 - STRATEGY COMPARISON 20% Increase!

24. Example with 8 year age difference EXAMPLE 2 - CLIENT SUMMARY

25. EXAMPLE 2 - SUGGESTED STRATEGY Ryan files at age 70 Heather files for benefits at age 67 (her FRA) Heather’s benefits are less than half of Ryan’s so she gets spousal benefits to make up the difference at her FRA 67 Lastly, Heather receives survivor benefits

26. EXAMPLE 2 - STRATEGY COMPARISON 112% Increase!

27. IMPORTANCE OF STARTING PLANNING EARLY You want to maximize the Social Security benefits that you receive Knowing your approximate Social Security income, you can plan so that your retirement savings lasts through your lifetime We can provide you a free Social Security and Retirement income analysis based on your situation

28. Social Security Maximization Calculator

29. SSI MAX - SIMPLE FORM

30. SSI MAX - SAMPLE REPORT

31. Questions/Comments?