Silver. Social Security Visualizer TM. User Guide. moneytree.com Toll free

Transcription

1 Silver User Guide Social Security Visualizer TM 1

2 Introduction Social Security Visualizer TM in Silver Financial Planner evaluates the results of over three-hundred possible claiming combinations unique to each couples situation. The educational text, example benefit numbers, and comparison graphs provide the basis for an informed discussion of the reason and benefits for each claiming strategy. Six of the most likely benefit claiming choices are shown, including the mathematically optimal choice based on the client information and planning assumptions used: 1) Earliest Ages 2) Full Retirement Ages 3) Latest Ages 4) Restricted Filing* 5) File and Suspend* 6) Optimal The selected strategy is incorporated in the financial planning projections, such as the Cash Flow Illustration and the Retirement Capital Analysis. *As of November 2, 2015 the Bipartisan Budget Act (BBA) of 2015 has been signed into law. The rule changes move to simplify the system. File and Suspend" and "Restricted Application" options will only be available for the limited clients still eligible, based on age and marital status. Read more: moneytree.com/blog/silvers-social-security-visualizer-updated 2

3 Claiming Strategy Details 1) Earliest Ages This option will illustrate the earliest ages the client(s) may claim benefits. This is usually age 62, however, be aware if the client earning income at that age, benefits may be offset until they retire, or reach FRA. If the client is beyond age 62, current age will be used. 2) Full Retirement Ages When this option is selected the program will start benefits at FRA. 3) Late Ages This option calculates benefits for the client(s) if they delay filing until the maximum individual benefit is available. This is usually age 70. If a life expectancy has been set to less than 70, the program will not calculate a benefit for that individual under this option. 4) Restricted Filing LIMITED AVAILABILITY due to BBA To take advantage of this strategy, the spouse that is filing restricted must have been born on or before 1/1/1954. After reaching FRA, married individuals become eligible for both spousal and individual benefits. In this strategy, one spouse files for individual benefits, and the other spouse files "restricted for spousal benefits when reaching FRAs. This allows one individual to take a spousal benefit, and delay filing for his or her individual benefit until age 70. 5) File and Suspend - NO LONGER AVAILABLE due to BBA To have used this strategy the spouse suspending benefits must have done so by 4/29/2016 and have been born on or before 4/30/1950. This strategy has one individual file for benefits at FRA and immediately suspend them. This allows the other individual to file for spousal benefits, while letting the first spouse's benefit continue to grow until the maximum benefit at age 70. This strategy typically is preferred over restricted when one spouse has significantly higher earnings over the other. 6) Optimal The program will calculate the filing strategy that produces the highest lifetime benefits. 3

4 Social Security Input Navigate to the [Pension/S.S.] section to view the new Social Security input options 4

5 Social Security Input The selected option will be used for the Social Security optimization reports and the main planning projections including the Retirement Capital Analysis and Cash Flow Illustration 5

6 Social Security Input Manual Start Age The Social Security input will default to [Manual Start Ages] [Manual Start Ages] works the same as the Social Security input before the addition of the claiming strategies 6

7 Social Security Input Manual Start Age [Manual Start Ages] should be used for clients who are already receiving Social Security or if you want to set a specific start age 7

8 Social Security Input Manual Start Age The [Manual Start Ages] input asks for the age for S.S. benefits to start, the estimated benefit amount for the START AGE (if known) 8

9 Social Security Input Claiming Strategies When selecting a claiming strategy, the input will ask for the benefit amount for the FRA (if known). 9

10 Social Security Input Claiming Strategies Entering the FRA benefit allows the program to automatically adjust the benefit amount for earlier or later start ages 10

11 Social Security Input Claiming Strategies Your clients can view their statement using SSA s website if they do not have a recent statement to view their benefits: 11

12 Social Security Input Claiming Strategies If the Social Security benefit amount is unknown, entering a benefit of 0 will indicate to the program to estimate the benefit based on the current earned income entered above 12

13 Social Security Input Earliest Age [Earliest Ages] will start Social Security benefits as early as possible, typically age 62 13

14 Social Security Input Full Retirement Age [Full Retirement Ages] will start Social Security benefits when the client reaches FRA ranging between 65 and 67 Full Retirement Age chart from ssa.gov: 14

15 Social Security Input Latest Ages [Latest Ages] will start Social Security benefits at age 70, the latest filing age to gain delayed retirement credits 15

16 Social Security Input Restricted Filing [Restricted Filing] will evaluate a twostep claiming process where one spouse claims his or her own benefit and the second spouse files for a spousal benefits only, delaying claiming his or her own benefit at a maximum age of 70 (married couples) 16

17 Social Security Input File and Suspend [File and Suspend] will evaluate a twostep claiming process where one spouse files for benefits at FRA, and immediately suspends benefits allowing the second spouse to claim spousal benefits, while the first spouse s benefits grow until claimed at a maximum age of 70 (married couples) 17

18 Social Security Input Optimal [Optimal] will select the strategy that allows for the highest lifetime income from Social Security benefits. 18

19 Social Security What If? The Social Security claiming strategies are available on the What If? for instant, side-by-side comparisons 19

20 Social Security Reports Five new report pages are available for the Social Security claiming strategies 20

21 Social Security Visualizer The Social Security Visulizer compares the five primary Social Security claiming strategies on a single page The total lifetime benefit and the amount benefit is over (under) claiming benefits at FRA is listed for the five claiming strategies The sixth item highlights the claiming strategy that produces the highest lifetime social security benefit in today s dollars 21

22 Social Security Visualizer Details 1.) - 6.): The five included S.S. claiming strategies and the optimal claiming strategy Age: The S.S. filing age and action is listed per strategy Lifetime Benefits: The total of S.S. benefits in today s dollars Difference: The dollar amount gain or (loss) of the lifetime benefit of the strategy compared to filing at FRA Percent: The percentage gain or (loss) of the lifetime benefit of the strategy compared to filing at FRA 22

23 Social Security Options Compared The Social Security Options Compared graphically presents the Social Security claiming strategies outcomes on a single page The top graph display the lifetime Social Security benefits of each strategy The bottom graph displays percentage the lifetime benefit gained or lost for each claiming strategy compared to claiming benefits at FRA 23

24 Social Security Options Compared - Details The first graph illustrates the lifetime benefit amount and the second the percentage gain (loss) for each strategy, as shown on the Social Security Visualizer report The blue bars show the total S.S. benefit from start age until life expectancy in today s dollars Claiming at FRA shows no gain or loss as it is considered the baseline for comparison Percent gained in lifetime benefits compared to claiming benefits at FRA is shown in green and percent lost in red 24

25 Social Security Timeline The Social Security Timeline details the claiming strategy selected for the clients The top section displays when the benefits are claimed and the monthly amounts A timeline of the strategy listing filing actions, ages, and benefit amounts is included on the lower section of the report The strategy reflected on this report is incorporated in the financial planning projections 25

26 Social Security Optimal Timeline The Social Security Timeline details strategy the program determines to be the optimal claiming strategy based on total lifetime benefits The top section displays when the benefits are claimed and the monthly amounts A timeline of the strategy listing filing actions, ages, and benefit amounts is included on the lower section of the report 26

27 Social Security Application Options The Social Security Application Options describes each of the five claiming strategies A table showing the FRA by year of birth is available towards the top right The table below the descriptions shows the initial individual retirement monthly benefit amount for potential start ages of 62 through 70 27

28 Social Security Visualizer Getting the most out of Social Security, and combining it efficiently with clients individual financial situation is different for each planning engagement. Simplifying concepts and helping clients grasp their own unique choices, is a big step towards a more informed Social Security claiming strategy. Promote your Social Security conversation with the fully integrated Social Security Visualizer in Silver Financial Planner. 28

29 Social Security Visualizer Thank you for taking the time to review Silver s Social Security Visualizer guide. Questions? Ask Money Tree s Support Team Toll free support@moneytree.com 29