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William Stark 12/13/2017 William Stark 12/13/2017

William Stark 12/13/2017 - PowerPoint Presentation

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William Stark 12/13/2017 - PPT Presentation

Exploring your best options Social Security What well cover today Things to consider before collecting Social Security retirement income Claiming strategies Taking action Unless otherwise noted the Social Security statistics and numbers presented are from ssagov and are current as ID: 794760

retirement benefits social benefit benefits retirement benefit social security age income fra strategy spouse spousal strategies claiming born collecting

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Presentation Transcript

Slide1

William Stark

12/13/2017

Exploring your best options

Social Security

Slide2

What we’ll cover today

Things to consider before collecting

Social Security – retirement income Claiming strategies

Taking action

Unless otherwise noted, the Social Security statistics and numbers presented are from ssa.gov, and are current as of December 2016.

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Slide3

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Consider these before collecting

Slide4

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Longevity

Chances of living beyond age 65

Assumes a person is in good health. 2015 Individual Annuity Mortality Basic Table projected for mortality improvement from base year 2015, American Academy of Actuaries.

Slide5

Marital status

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Slide6

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Will you work in retirement?

Slide7

Other retirement income sources

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Slide8

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Cornerstone of retirement income

Slide9

Social Security beginnings

Created in 1935

During the Great DepressionAmerican retirement safety net

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Slide10

Social Security today

Estimated 165 million workers covered

Important income source for recipients9 of 10 individuals over age 65 receive benefits

Provides

more than half of income

for elderly beneficiaries 3 out of 4 singles 1 of 2 couples

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Slide11

What Social Security Retirement Benefits provide

Lifetime retirement income

Cost of living adjustments for inflation

Spousal and survivor benefits

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Slide12

How to qualify

40 credits required to qualify

Credits earned during working yearsApproximately 10 consecutive years of work

$1,300

$5,200

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Slide13

Know the terms

Full Retirement Age (FRA)

Age at which a person becomes entitled to receive full Social Security Retirement benefits. Between 65 and 67 depending on birth year.

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Slide14

Know the terms

Primary Insurance Amount (PIA)

The full monthly Social Security benefit you are entitled to receive at FRA. Determined by your averaged indexed monthly earnings.

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Slide15

Know the terms

Delayed Retirement Credit (DRC)

If you delay collecting Social Security retirement benefits beyond FRA, benefits are increased annually for each year you delay claiming benefits until age 70 by 7-8%, depending on your FRA.

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Slide16

Collecting

early

Age 62 is earliest for individual or spousal benefits

Decreases monthly benefit by as much as 30%

Benefits remain reduced – future COLA based on lower benefit amount

Reduces survivor benefits

Potentially

more

payments at

lower

amounts

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Slide17

Early

claiming example

Born: 1953 FRA: 66 Monthly benefit:

$2,000

Reduction at 62: 25% Monthly benefit at 62:

$1,500

Hypothetical example for illustrative purposes only. Does not factor in cost of living adjustments.17

Slide18

Collecting

later

If past FRA, will receive DRC of 7-8% annually (depending on your FRA)Benefits increased up to age 70

Fewer

payments,

greater

payment amounts18

Slide19

Delayed claiming example

Born: 1953 FRA: 66 Monthly benefit:

$2,000

DRC: 8% Monthly benefit at 70:

$2,640

Hypothetical example for illustrative purposes only. Does not factor in cost of living adjustments.

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Slide20

The trade off

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Slide21

Impact of working

If collecting benefits prior to FRA

Some benefits may be withheld

Income limit changes each year

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Slide22

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Tax considerations

Step 1:

Calculate your

Combined Income

Combined = Adjusted + nontaxable + ½ of Social Security

Income Gross Income interest payments received

Step 2:

Determine how much is taxed

based on your Combined Income by using the table below

Slide23

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Claiming strategies

Slide24

Strategies for spouses…

If you are

married

you need not be eligible for individual benefits to claim a spousal benefit. A spousal benefit is up to 50% of your spouse’s PIA.

You can claim a spousal benefit if…

You are age 62 or olderYou have been married for at least one yearYour spouse has filed for benefits. If your spouse has suspended benefits, they must have suspended them prior to April 30, 2016.24

Slide25

Advanced strategies for spouses

One spouse collects and other defers

Possibly due to one spouse still working

Legislation passed in the 2015 Budget Act sought to “close loopholes” affecting two advanced claiming strategies you may have heard of:

File and suspend (voluntary suspension)

Restricted application

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Slide26

File and suspend strategy has changed

New rules

Rules depend on date of birth

Those who have already

filed and suspended

Benefits are unaffected.

Those born on or

before April 30, 1950

“File

and Suspend” strategy is available IF request for benefit suspension

submitted before April 30, 2016.

Those born after

April 30, 1950

No spousal or family benefits based on a filer’s earning record will be

paid to anyone else while benefits are suspended.

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Slide27

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This strategy changed for benefits suspended after 4-29-16

May voluntarily suspend retirement benefit payments up to age 70

May earn delayed retirement credits during suspension

Others will not be able to receive benefits during suspension

Exception: divorced spouse will be able to continue receiving benefits.

Part B Medicare premiums cannot be deducted from suspended benefits.

Claiming strategy

File and suspend

Slide28

Restricted application strategy has changed

New rules

Rules depend on age

Those who have already

filed a restricted application

Benefits are unaffected. (Unless the other spouse suspends after April 29, 2016.)

Those born on or before

January 1,

1954

“Restricted Application” strategy available when

Full Retirement Age is reached. (Unless the other spouse suspends after April 29, 2016.)

Those born after

January 1, 1954

“Restricted Application” strategy no longer available. Upon filing, will be “deemed” to have filed for ALL benefits to which entitled.

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Slide29

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Restricts your claim for Social Security retirement benefits to spousal benefits only

This strategy recently changed and may be unavailable for some retirees

If born on or before 1-1-54, only available at FRA

If born after 1-1-54, this strategy is not available

Claiming strategy

Restricted application

Slide30

Strategies for former spouses

If you are

divorced

you can claim a spousal benefit on your ex-spouse’s earnings if …

Your marriage lasted 10 years or more

You (the claimant) have not remarriedYou (the claimant) are not entitled to a higher individual benefitBoth you and your ex-spouse are age 62 or olderYour former spouse has already filed for benefits OR you have been divorced for at least two years. 30

Slide31

Strategies for widows / widowers

Surviving spouses can receive:

Reduced benefits as early as age 60 orFull benefits at FRA or older

If survivor qualifies for benefits on own earnings record, may switch from survivor to own retirement benefit

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Slide32

Social Security tomorrow

Much press about future of Social Security

Currently 2.8 workers for each beneficiaryBy 2035 it will be 2.1 workers

Tax and benefit changes most likely to affect younger workers

Bipartisan Budget Act of 2015 changed rules for couples

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Slide33

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Taking action

Slide34

Learn even more

Visit

ssa.gov for benefit and program info

Create an account to view your earnings and estimated retirement benefits

Access a benefits application form

Find an office near you

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Slide35

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Slide36

It helps to have a guide

Social Security is an important source of retirement income

Many options and additional strategies for collecting benefits

Your story and circumstances are unique to you

We can prepare a simple or comprehensive estimate for you

36

Slide37

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Slide38

Securian Financial Group, Inc.

www.securian.com

Insurance products are issued by Minnesota Life Insurance Company in all states except New York. In New York, products are issued by Securian Life Insurance Company, a New York authorized insurer. Minnesota Life is not an authorized New York insurer and does not do insurance business in New York. Both companies are headquartered in St. Paul, MN. Product availability and features may vary by state. Each insurer is solely responsible for the financial obligations under the policies or contracts it issues. Variable products offered through Securian Financial Services, Inc. Member FINRA/SIPC. 400 Robert Street North, St. Paul, MN 55101-2098 • 1-800-820-4205

©2016 Securian Financial Group, Inc. All rights reserved.

F80607-6 Rev 2-2017 DOFU 2-2017

(29163)

93590

This is a general communication for informational and educational purposes. The materials and the information are not designed, or intended, to be applicable to any person's individual circumstances. It should not be considered investment advice, nor does it constitute a recommendation that anyone engage in (or refrain from) a particular course of action. If you are seeking investment advice or recommendations, please contact your financial professional.

This information is a general discussion of the relevant federal tax laws provided to promote ideas that may benefit a taxpayer. It is not intended for, nor can it be used by any taxpayer for the purpose of avoiding federal tax penalties. Taxpayers should seek the advice of their own advisors regarding any tax and legal issues specific to their situation

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