10 ways to maximize your social security...and ways to file for social security than ever before....
TRANSCRIPT
1 10 Ways To Maximize Your Social Security. © 2016 Weiss Educational Services. All Rights Reserved.
10 Ways to Maximize Your Social Security Little-Known Filing Strategies to Help You Get Every Penny You Are Entitled to
By Matthew Allen,
Co-Founder, Social Security Advisors
Most Americans haven’t heard of Ida May Fuller, the first person to receive a monthly Social
Security check, but she is likely a good role-model for those nearing retirement.
After paying just $24.75 in Social Security taxes during the
first three years of the Social Security program, Fuller retired
at 65, lived to 100, and received a total of $22,888.92 in Social
Security benefits during her lifetime.
That’s quite an impressive rate of return; and regardless of
how you slice it, Ms. Fuller certainly maximized her Social
Security benefits. Of course, since the days of Ida May Fuller,
the Social Security program has changed substantially and Americans now have more options
and ways to file for Social Security than ever before.
This makes planning and knowing
when and how to claim your Social
Security extremely important. Those
nearing retirement can choose to
claim Social Security at 62, 66, 70, or
any age in-between; and the longer
you wait, the higher your benefits.
Also, you have to make a choice as to
who’s record are you going to claim
on and when: your own record, your
spouse’s, a combination of the two?
It easily gets confusing and despite
one’s best intentions, making the
smartest decision possible is
complicated.
2 10 Ways To Maximize Your Social Security. © 2016 Weiss Educational Services. All Rights Reserved.
In this special report, we will cover:
Why Claiming Social Security is Complicated
How Are My Benefits Calculated?
What Benefits Am I Entitled To?
Factors to Consider When Claiming Social Security
Some Strategies to Maximize Your Social Security & How They’re Changing
Avoid These Common Mistakes
I Made a Mistake, Can I Undo My Decision?
Tips & Tricks
Where Can I Turn for Expert and Unbiased Advice?
Why Claiming Social Security is Complicated
While claiming Social Security should be simple, it is anything but
that. To start, there are 2,728 rules and for the typical American
couple over 9,200 different claiming options.
Making an optimal Social Security decision and maximizing your
benefits depends on so many variables, including a primary
obstacle of not knowing how long you are going to live.
While Social Security payments continue for life, the amount that you receive will depend on
important decisions that you make; and the amount you receive will critically depend on when
you claim your benefit and on which record (i.e., yours, your spouse’s, or a combination of the
two at different times).
For most people, when asked when they think they
should claim their Social Security, they immediately
respond, “as soon as possible.” Unfortunately, this is
what approximately 70% of Americans mistakenly do.
And in doing so, they leave $120,000 on average per
couple on the table in lost benefits because they didn’t
plan and certainly didn’t understand their options prior to
claiming.
In total, there is roughly $25 Billion per year in Social Security benefits left on the table
because Americans are not optimizing their Social Security claiming decisions.
3 10 Ways To Maximize Your Social Security. © 2016 Weiss Educational Services. All Rights Reserved.
Figuring out when and how best to claim Social Security is basically one big math problem and
there are right ways and wrong ways of going about it.
How Are My Benefits Calculated?
Your Social Security benefit is based on your highest 35 years of earnings. In general, the more
you contribute over your lifetime, the higher the benefit that you’ll be eligible for.
Knowing your Full Retirement Age is critical because nearly everything that pertains to Social
Security depends on it. Your Full Retirement Age varies depending on your birthday. If you
were born between 1943 and 1954, your Full Retirement Age is 66. This is the bulk of the Baby
Boom. For every year after 1954, Full Retirement Age increases by two months and reaches 67
for those born in 1960 or later.
In general, the longer you wait to collect your Social Security, the higher your monthly benefit
will be.
At Full Retirement Age, you receive 100% of your Primary Insurance Amount; at 62 (the
earliest you can collect a retirement benefit), you receive 75% of your Primary Insurance
Amount, and if you wait and collect at 70 years old, you receive 132% of your Social Security
Benefits due to Delayed Retirement Credits.
4 10 Ways To Maximize Your Social Security. © 2016 Weiss Educational Services. All Rights Reserved.
Delayed Retirement Credits are extra credits you earn on your account in
exchange for waiting longer to collect your benefit; and they accumulate
at an attractive rate of 8% per year…hence the 132% at 70 vs. 100% at 66.
This 132% will last for the rest of your lifetime; and if you’re the higher
earner in a couple, it will also be the survivor benefit amount that your
lower earning spouse inherits as a survivor benefit. Because of this, it’s
especially important that the higher earner in a couple accumulate as
many Delayed Retirement Credits as possible.
To put some numbers to the above example, if your Primary Insurance Amount at Full
Retirement Age is $2,000 per month, if you take benefits at 62, you’ll receive $1,500 per
month (75% of your PIA) and if you take benefits at 70, you’ll receive $2,640. So there’s a 76%
difference between what you can receive at 70 vs. 62. Also, however and very important to
know, is that there are ways to do both; start receiving some benefits, while also accumulating
Delayed Retirement Credits. This is the one reason that having a Social Security strategy is so
critical.
A reduced benefit is not the only penalty for filing too early; you’ll also reduce and in some
cases eliminate your ability to implement some valuable Social Security strategies because
they are dependent on your original filing date.
For these reasons, claiming benefits at 62 is generally the wrong approach for most people
according to Matthew Allen, Co-Founder and CEO of Social Security Advisors, a company that
provides personalized Social Security claiming recommendations and helps clients maximize
their Social Security.
Cash Fatter Social Security Checks…
As Much as $1,505 or More Each Month
Did you know that changing just ONE Social Security filing strategy can increase your retirement
benefits by as much as $1,505 every month?
In fact, the average couple is leaving approximately $120,000 in lifetime benefits on
the table.
The good news is that you can simply and easily maximize your Social Security benefits thanks
to a handful little-known strategies that can help you get EVERY penny you're owed.
Even if you've already filed, you may be able to get a "do-over" and collect more money every
month...as much as $1,505 extra per month or more.
Watch this brief video to see how.
5 10 Ways To Maximize Your Social Security. © 2016 Weiss Educational Services. All Rights Reserved.
What Benefits Am I Entitled To?
You: If you have worked at least 10 years, you are generally eligible to receive benefits.
Technically, you need 40 credits to qualify for a benefit on your own record and your amount
of credits can easily be found on your Social Security statement or by creating an account on
the Social Security Administration website at http://socialsecurity.gov/myaccount.
Your Spouse: Spouses can claim a benefit worth as much as half of what Social Security pays
you… even if he/she has enough credits to qualify for his/her own benefit.
Your Ex-Spouse: Your ex-spouse can qualify for a benefit of up to half
of what Social Security pays you as well. Not to worry though, any
benefits paid to an ex-spouse will have no impact on the level of your
own benefit. To claim, your ex spouse must be 62 or older, unmarried,
and your marriage must have lasted at least 10 years.
Your Kids: Minor children of some retirees can receive benefits.
A Survivor Benefit: A survivor benefit is available for those who were
married or divorced and the amount of the survivor benefit depends on
the following:
1) Benefits currently being received, and on which record
they are being paid
2) The age at which you claim the survivor benefit
3) The amount of the benefit the deceased was eligible for or receiving, at the time
of death.
Factors to Consider When Claiming Social Security
Marital Status: This is generally the most significant factor in considering when and how best
to file for Social Security, mainly because your marital status greatly impacts the Social
Security strategies that are available to you. Whether you’re single, married, divorced, or a
survivor, there are smart ways to claim your benefits. For some rules of thumb and points to
consider based on your marital status, you can learn more by clicking here!
Life Expectancy & Family Longevity: Life expectancy is a critical factor as well when
determining your optimal Social Security strategy, but it is naturally also the most difficult to
quantify. A good place to start to obtain an estimate of your life expectancy, is by using the
Social Security Administrations Life Expectancy Calculator which can be found here:
https://www.ssa.gov/planners/lifeexpectancy.html
6 10 Ways To Maximize Your Social Security. © 2016 Weiss Educational Services. All Rights Reserved.
Also, it is important to take into consider your family history
and current health status or known health issues. If your
parents both lived to 95 years old, and you are in good
health, then obviously you should be adjusting higher;
whereas, if you have a known health condition at 65, you
should be more conservative in your estimate.
Because Social Security benefits are a lifetime benefit
however, it is generally wise to use a slightly higher life
expectancy than usual; after all, one of your biggest risks is taking benefits too early and
receiving a lower monthly benefit later in life when you may need the money most.
Overall Financial Circumstances: Sometimes you need the money immediately and you have
no choice but to file for Social Security early…even if it means forgoing higher benefits or
implementing a smarter strategy. However, for those who can wait, are still working, or can
draw on savings and investments elsewhere, claiming later and optimizing your benefits will
be well worth it.
Work Status: If you desire to keep working (whether out of pleasure or
necessity), the good news is that you can claim benefits and continue to
work at the same time under certain circumstances. After you reach Full
Retirement Age, there is no penalty for receiving benefits while continuing
to work; however, if you claim before your Full Retirement Age, there is a
limit to what you can earn from work ($15,720 in 2016) before benefits start
to be withheld.
Lifestyle Objectives: Obviously, there are also quality of life issues to
consider. Perhaps you’ve been wanting to take that special vacation or spend more time with
your grandkids. These are all very valid and worthwhile considerations. Just be sure to balance
these considerations with the financial benefits of making a strategic decision.
Some Strategies to Maximize Your Social Security & How They Are Changing
Although there will be many valuable Social Security
strategies that remain, a new law as part of the Bi-Partisan
Budget Bill of 2015 that passed November 2nd, 2015 means
that two popular Social Security strategies will be eliminated,
and this may change the way that you need to be thinking
about how and when to claim your Social Security. Even
those who have already claimed can be impacted.
7 10 Ways To Maximize Your Social Security. © 2016 Weiss Educational Services. All Rights Reserved.
File and Suspend Strategy
The Strategy: Using the File and Suspend
strategy, one member of a couple claims
benefits and the other spouse suspends
them. This gives his or her spouse the
ability to start claiming a spousal benefit
at the appropriate time, while the
benefit of the spouse who filed and suspended continues to grow at 8% per year until
age 70. This increases not only the benefit payable when it is resumed, but also
increases the eventual survivor benefit payable.
The Change: Under the new law, when an individual suspends his or her own benefits,
all benefits payable, including those payable to a spouse or other dependents, will ALSO
be suspended. The new law also eliminates the ability to request a lump-sum benefit
back to the date of when benefits were suspended.
Why This is Important & What’s Happening: Basically, if you don’t take advantage of
this strategy by the deadline, the ability to have a spouse claim a spousal benefit while
the primary filer also receives Delayed Retirement Credits is going away. Failing to take
advantage of this strategy can cost many couples $50k to $60k in lifetime benefits or
more than $120k when combined with a Restricted Application strategy.
Important Deadlines: Those who are receiving benefits already under this strategy will
continue to receive them. For those that are not, they must be at least 66 and must file
by April 29th, 2016. You should consult with an Advisor before deciding whether this is
right for you and your spouse because it's not the best strategy for everyone. Those
either already implementing this strategy or filing and suspending before April 29th,
2016 will continue to fall under the old rules until they reach 70 or resume benefits.
Those who request to suspend after the April 29th, 2016 deadline will be subject to the
new rules.
What You Should Do: Talk with a Social Security Advisor and obtain expert advice on
who should File and Suspend and when. Especially if you or your spouse are going to be
66 or older by April 29th, 2016 you need to pay very close attention and carefully
consider your options. The File and Suspend strategy is very valuable and it is important
to obtain expert advice prior to proceeding.
8 10 Ways To Maximize Your Social Security. © 2016 Weiss Educational Services. All Rights Reserved.
Here are specific tips for different types of people:
Singles: By April 29th, 2016, all singles 66 and over should highly consider and
evaluate filing and suspending in order to preserve the option to receive a lump-
sum benefit at a later date. This will no longer be possible after the April 29th,
2016 deadline.
Married Couples: All married couples with at least one spouse age 66 to 70, need
to consider whether it would be beneficial to file and suspend by the April 29th,
2016 deadline in order to preserve their options and Social Security strategies
available to them in order to maximize their benefits. Married couples have the
most to lose by failing to consider these strategies prior to the deadline.
Divorced: By April 29th, 2016, all divorced individuals 66 and over should highly
consider and evaluate filing and suspending in order to preserve the option to
receive a lump-sum benefit at a later date. This will no longer be possible after
the April 29th, 2016 deadline.
Survivors: Interestingly, survivors are unaffected by this new legislation and will
continue to have the same options available to them going forward. Survivors
should carefully consider their Social Security options however, because they can
be eligible for benefits on one record… while continuing to accrue Delayed
Retirement Credits and claim on the other record at a later date.
Restricted Application Strategy
The Strategy: Filing a Restricted Application at Full
Retirement Age or later allows the filer to file only for
spousal benefits (worth up to 50% of their spouse’s Full
Retirement Age benefit) while letting their own
benefits continue to grow and accumulate Delayed
Retirement Credits at the rate of 8% per year until they
claim their own benefits at a later date.
The Change: With the exception of those filing for
survivor benefits, anyone born in 1954 or later will no longer be able to file a Restricted
Application for spousal benefits only. Those attempting to do so will be subject to the
“Deemed Filing” rule which requires that Social Security consider your eligibility for all
benefits for which you are eligible.
9 10 Ways To Maximize Your Social Security. © 2016 Weiss Educational Services. All Rights Reserved.
Why This is Important & What’s Happening: Filing a Restricted Application is being
eliminated for those born in 1954 or later (with the exception of those filing for a
survivor benefit).
Important Deadlines: You must be at least 62 by December 31st, 2015.
What You Should Do: Talk with a Social Security Advisor and obtain expert advice on
who should file a Restricted Application and when. The Restricted Application strategy is
very valuable and it is important to obtain expert advice prior to proceeding. Here are
specific tips for different types of people:
Singles: Because a Restricted Application is only valuable to those that are or have
been married, singles will be unaffected by this change.
Married Couples: All married couples with a spouse that is at least age 62 but
under 70 years old, and who has not already claimed benefits on his/her own
record, need to consider whether it would be beneficial to file a Restricted
Application to help them maximize their benefits. Married couples have the most
to lose by failing to consider these strategies. Failing to take advantage of this
strategy can often cost couples $50k to $60k in lifetime benefits or more than
$120k in lifetime benefits when combined with a File and Suspend strategy.
Divorced: All divorced individuals born prior to 1954 who have not already
claimed benefits on their own record should highly consider and evaluate filing a
Restricted Application in order to preserve the option to receive ex-spousal
benefits…while also obtaining Delayed Retirement Credits. This is often worth
$50k to $60k in benefits.
Survivors: Survivors are unaffected by this new legislation and will continue to
have the same options available to them going forward. However, Survivors
should carefully consider their Social Security options because they can be eligible
for benefits on one record while continuing to accrue Delayed Retirement Credits
and claim on the other record at a later date.
In addition to the above two strategies, there are many others available whether you’re single,
married, divorced, or a survivor. It’s of the utmost importance to figure out which strategy is
best for you and your unique circumstances.
Learn How to Maximize Your Social Security in My New online course.
10 10 Ways To Maximize Your Social Security. © 2016 Weiss Educational Services. All Rights Reserved.
Avoid These Common Mistakes
Failing to Coordinate Spousal Benefits
Often, married couples don’t realize that they should be
working together as a team when thinking about when to
take their Social Security. Too often couples focus on only
their own Social Security benefit, and fail to recognize that
they may be eligible for a spousal benefit of up to 50% of
their spouse’s benefit…while waiting to claim their own
benefits. Missing these benefits often costs a couple $40K to
$50k in lost Social Security benefits.
Not Maximizing Survivor Benefits
Again, teamwork is important. Generally, the higher-earning spouse should be especially
careful about when to claim Social Security benefits on his or her own record. As mentioned
above, this is because the Social Security benefit of the higher-earning spouse is going to be
the benefit that lasts the longest for the couple, or in other words, is “inherited” by the
surviving spouse. For this reason, pursuing a strategy that increases the survivor benefit as
much as possible can make a significant difference. Most couples miss another $70k to $80k
by failing to maximize the survivor benefit.
Not Working for At Least 35 Years
Continuing to work in retirement can be one of the best ways to increase your Social Security
benefits; especially for married couples. Each additional year of current earnings from work
that replace a lower earning year, will increase your (and potentially your spouse’s) Social
Security. If you have less than 35 years of earnings, the non-working years will be counted as
“0” and will lower your overall Social Security benefit vs. having worked at least 35 years.
Claiming Early
Just turned 62? Thinking of running to the Social Security Administration to
claim your benefits? Hold on. This is by far the single biggest mistake that
most Americans make. Many believe that Social Security is almost an
“automatic” benefit; turn 62, collect, and don’t think about it again. This
couldn’t be further from the truth if you want to maximize your benefits. If
you want an expert to help you apply for your benefits and save you the
time and hassle of applying on your own, you can find more information in
my brand new course, Maximizing Your Social Security.
11 10 Ways To Maximize Your Social Security. © 2016 Weiss Educational Services. All Rights Reserved.
Missing Out on Delayed Retirement Credits
So you were wise and decided against claiming Social Security immediately at 62. What’s the
upside? Well, the Delayed Retirement Credits (DRCs) mentioned above. They accumulate at a
substantial rate; 8% per year up until age 70. Remember that claiming at 70 vs. 62 means
you’ll receive 176% of what you would have received at age 62 for the rest of your life and
your spouse can benefit from your DRCs as well.
Earning Too Much While Collecting Benefits
Another frequent stumbling block is the Earnings Test. The
Earnings Test applies to those who claim Social Security
benefits prior to their Full Retirement Age (66 for most
people) and are still working and earning an income. Earning
more than $15,720 in 2016 while collecting a Social Security
benefit will cause the Social Security Administration to
withhold $1 for every $2 in earnings over the Earnings Limit.
While this money is not technically lost (the Social Security Administration credits it to your
account at your Full Retirement Age), claiming early and having benefits withheld can present
two major problems:
Benefits will be withheld so you will not receive all the benefits (if any)
anticipated as the result of claiming
Claiming early (even if you’re not receiving a benefit because it’s being withheld)
will still lock you into the early claim date, which means a suboptimal Social
Security strategy and less money.
Ignoring the Impact of Taxes
As Ben Franklin has said, there are only two things that
are certain in life: death and taxes. Well, unfortunately,
Social Security benefits are taxable as well depending on
your income. This can be harmful because without proper
planning, taxation can reduce Social Security benefits by
up to 30% in some cases! This is called the Social Security
Tax Torpedo and should be avoided whenever possible.
Whether or not your Social Security income is subject to
taxation depends on the level of your Provisional Income.
12 10 Ways To Maximize Your Social Security. © 2016 Weiss Educational Services. All Rights Reserved.
Provisional Income is defined as follows:
Provisional Income = Modified Adjusted Gross Income + Tax-Exempt Interest + 50% of Your
Social Security Benefits
For more information about the taxation thresholds for Social Security and how much of your
Social Security may be subject to tax, check out my brand new course, Maximizing Your Social
Security.
Having Errors in Your Social Security Earnings Record
You want to get credit for all your hard work, right? Well, make sure that you check your
earnings record with the Social Security Administration on your Social Security statement. It’s
important because if there are errors in your earnings record, you won’t receive all of the
Social Security benefits that you have earned. If there are errors, you have 3 years, 3 months,
and 15 days to correct them. After that, it’s too late.
I Made a Mistake, Can I Undo My Decision?
Yes, the good news is if you catch it early enough, you can. You have up to one year from the
date of entitlement (i.e., when you first received benefits) to undo your decision. You can file a
special application to withdraw your application and start over. You will have to repay any
benefits that you’ve received in that year, but for those who make a mistake, this can be a
fresh start.
Even if you’ve missed the one-year deadline, if you’re under 70 years old, all is not lost. Among
other options available to you, suspending the receipt of benefits once Full Retirement Age is
attained can minimize the damage as a result of claiming too early.
Tips & Tricks
Reserve Your Filing Date by Filing a Protective Filing Statement: If you’re thinking that you
may be getting close to filing for your Social Security, file a Protective Filing Statement first.
This can give you the ability (if desired) of using the date of the Protective Filing Statement as
the date of your application and can give you the ability to obtain retroactive benefits that you
would otherwise not be eligible to claim.
Get a Lump Sum Benefit: As mentioned, you can use the File and Suspend strategy to suspend
your benefits after Full Retirement Age and if you decide to resume them let’s say two years
later, you can elect to receive the suspended benefits as a lump sum. A word of caution
however; if you do this, you will forfeit the accumulated Delayed Retirement Credits during
that timeframe.
13 10 Ways To Maximize Your Social Security. © 2016 Weiss Educational Services. All Rights Reserved.
Where Can I Turn for Expert and Unbiased Advice?
Well, this is a good question. The Social Security Administration is prohibited by law from
providing advice and most financial advisors are not familiar enough with the Social Security
claiming strategies available to help their clients in an effective manner.
Making the optimal Social Security claiming decision and maximizing your benefits is
complicated. That’s why I strongly recommend taking a look at my brand new course,
Maximizing Your Social Security.
With no Social Security Cost of Living Expenses (COLA) for 2016 and with Medicare premiums
projected to rise for many, making the right Social Security decision for you and your family is
more important than ever.
Get an EXTRA $120,000
From Social Security
It's shocking, but true. Seven out of ten Americans are missing out on their full Social Security benefits.
In fact, the average couple is leaving approximately $120,000 in lifetime retirement benefits on
the table.
The good news is changing just one filing strategy can make a huge difference — as much as an
extra $415, $845, even $1,505 every month.
In his new course Maximizing Your Social Security, Matthew Allen of Social Security Advisors
gives reveals little-known strategies that can help you get every penny you're owed.
Watch this brief video to learn more!