Client Presentation Pres 2023

1. Social Security Planning
“Optimize Your Benefits”

2. Agenda
Why Social Security is Important
Social Security Basics
Mastering the Complexities
Case Examples Included
Questions

3. Social Security Planning
“Why Social Security is Important”

4. Social Security Importance
Married
Divorced
Widows
Children
Disabled
Self-Employed
4 Important Social Security Facts
1. It is more than just a retirement program
2. It provides a guaranteed, progressive benefit
3. It provides a foundation of retirement
protection
4. Many rely on it for a majority of their
retirement income

5. How much would you need to invest in other retirement accounts such as (Annuities, CD’s, IRA’s, 401ks, Pensions, etc.) to
match the income you could receive from your Social Security income?
Cornerstone of Retirement Planning
*Heatmap is an example used exclusively from RSSA Roadmap Software

6. Problems You Face
2,728 rules surround the Social
Security program & thousands
of claiming strategies
Many are uneducated which
is why 96% of claimants don’t
optimize
There are few reliable
resources for expert Social
Security help

7. Retirement Income Strategy
"Optimizing” your Social Security and Retirement Strategy is taking a holistic approach and understanding
your specific circumstances and how you can find a plan that matches your retirement goals
Fixed Expenses
Ø Mortgage
Ø Credit Cards
Ø Loans
Ø Insurance
Ø Food
Ø Utilities
Retirement Assets
Ø 401K
Ø Pension Plans
Ø IRA’s
Ø Roth IRA
Ø Annuities
Ø Stocks
Variable Expenses
Ø Travel
Ø Shopping
Ø Vacations
Ø Hobbies
Ø Entertainment
Ø Lifestyle

8. Social Security Planning
“Social Security Basics”

9. Full Retirement Age
Primary Insurance Amount
Average Indexed Monthly Earnings
Delayed Retirement Credits
Cost-of-Living Adjustment
Basic Social Security Terms

10. Full Retirement Age
Full Retirement Age:
1. Receive Primary Insurance Amount
2. Full unreduced benefit
3. No longer subject to the earnings limit
4. 6-month retro payment
5. Voluntary Suspension
Birth Year* Full Retirement Age
1943-54 66
1955 66, 2 months
1956 66, 4 months
1957 66, 6 months
1958 66, 8 months
1959 66, 10 months
1960 & higher 67

11. Social Security Calculations
Primary Insurance Amount Data
Full Retirement Age (FRA): 67 (04/2027)
Sum of highest 35 years of indexed earnings: $4,789,438
Average Indexed Monthly Earnings (AIME): $11,403
Bend Point Breakdown
Bend Point Portion Multiplier Amount
$0 - $1,024 $1,024 X 90% = $922
$1,025 - $6,172 $5,148 X 32% = $1,647
>$6,173 $5,231 X 15% = $785
Primary Insurance Amount (PIA): $3,354
Ø Earnings before age 59 are indexed for inflation
Ø Earnings from age 60 and after, are used at face value
*PIA calculator is an example used exclusively from RSSA Roadmap Software
Ø Highest 35 Year Indexed Sum
Ø Average Indexed Monthly Earnings

12. Social Security Reductions & Credits
Monthly Benefits Richard
2024 2025 2026 2027 2028 2029 2029 2030 2031 2032
62 63 64 65 66 FRA 67 68 69 70
$2,611 $2,781 $2,966 $3,213 $3,461 $3,708 $3,708 $4,004 $4,301 $4,598
Percentage of Primary Insurance Amount
2024 2025 2026 2027 2028 2029 2029 2030 2031 2032
62 63 64 65 66 FRA 67 68 69 70
70% 75% 80% 87% 93% 100% 100% 108% 116% 124%
*Images are examples used exclusively from RSSA Roadmap Software

13. Spousal Benefit Reductions
Monthly Benefits
Percentage of Primary Insurance Amount
2024 2025 2026 2027 2028 2029 2029 2030 2031 2032
62 63 64 65 66 FRA 67 68 69 70
$1,205 $1,334 $1,464 $1,594 $1,724 $1,854 $1,854 $1,854 $1,854 $1,854
2024 2025 2026 2027 2028 2029 2029 2030 2031 2032
62 63 64 65 66 FRA 67 68 69 70
32.5% 35% 37.5% 41.66% 45.83% 50% 50% 50% 50% 50%
*Images are examples used exclusively from RSSA Roadmap Software

14. Cost-of-Living Adjustment
Collecting Benefits:
Ø For those who are already collecting a
benefit when the COLA increase
begins each January, that benefit will
be adjusted to reflect that COLA
increase
Not collecting Benefits:
Ø For those aged 62 and older will
receive the COLA increase even if they
have not begun collecting benefits.
Clients who are not collecting, the
COLA increase adjusts their PIA
2.8
1.6 1.3
5.9
8.7
0
1
2
3
4
5
6
7
8
9
10
2019 2020 2021 2022 2023
Cost Of Living Increase Last 5 Years
Cost Of Living Increase

15. Social Security Planning
“Understand the Complexities”

16. Earnings Test
Collecting While Working
Ø $1 for every $2 earned above $21,240* - In all
years before reaching full retirement age year
Ø $1 for every $3 you earn above $56,520* - In the
year full retirement age will be reached
Ø No earnings limits at or after reaching full
retirement age
The “Earnings Test” limits how much can be earned while collecting Social Security benefits
Income That Does Not
Count
Income That Does
Count
Ø Pension Payments
Ø Annuity Payments
Ø IRA Distributions
Ø Dividends
Ø Interest Income
Ø Capital Gains
Ø Rental Income
Ø Employment
Income (W-2
Wages)
Ø Net Income from
Self-Employment
*2023 figures

17. “Non-Covered” Pension
A pension from work in which Social Security taxes were not withheld
• A Non-Covered Pension
• Retirement or Disability Benefit
• Over 2 million impacted in 2022
Windfall Elimination
Provision (WEP)
• A Non-Covered Pension
• Spousal or Survivor Benefit
• Over 724,000 impacted in 2022
Government Pension
Offset (GPO)

18. Dependent Benefits
Dependent Benefit Key Takeaways:
1. 50% of PIA while parent is alive
2. 75% of PIA if parent is deceased
3. Limited by family maximum benefit
3. Child In-Care Spousal Benefit (If Caring for One Above)
*Spouse must be collecting
benefits
Eligible to receive 50% of the
collecting spouse's PIA
2. Disabled Child (If Disabled Before Reaching Age 22)
*Parent must be collecting
benefits
Eligible to receive 50% of the
collecting parent's PIA
1. Minor Child Under Age 18 or 19 (If Still in High School)
*Parent must be collecting
benefits
Eligible to receive 50% of the
collecting parent's PIA
Family Maximum Benefit
Ø Limits the total benefits that can
be paid out on one worker's
earnings record

19. Survivor Benefits
Survivor Benefit Key Takeaways:
1. Survivor benefit has a “base amount”
2. Benefits determined by age of claim
3. Survivor FRA is 4 months less than normal FRA
Eligibility factors
Ø Married at least 9 months
Ø Collecting age starts at 60
Ø Collect at age 50+ if disabled
Ø Any age if caring for a child under age 16
Ø Any age if caring for a disabled adult child
Survivor Benefit
Claimant Age
Survivor Benefit
Reduction %
60 71.50
61 75.58
62 79.65
63 83.72
64 87.79
65 91.86
66 95.93
67 (FRA) 100
68 100
69 100
70 100

20. Future Earnings Impacts
Disability Benefits
Life Expectancy & Break-Even
Voluntary Suspension
Deemed Filing
Taxation on Social Security
Many Social Security Factors to Consider

21. Social Security Planning
“Questions”