social security planning what about the retiree?

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Social Security PlanningSocial Security Planning

What about the Retiree?What about the Retiree?

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Presented By: Presented By:

Marcia L. Miller, MBA, EA Marcia L. Miller, MBA, EA Financial Horizons, Inc. Financial Horizons, Inc. Weston, Florida Weston, Florida [email protected]@aol.com

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Planning For Social SecurityPlanning For Social Security

Is A Growing NicheIs A Growing Niche

It Fits In Nicely With General It Fits In Nicely With General Retirement PlanningRetirement Planning

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But With Longer And Longer But With Longer And Longer Life Expectancies The Value Life Expectancies The Value

Of Planning GrowsOf Planning Grows

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Social Security PlanningSocial Security Planning

A. Social Security adjustmentsA. Social Security adjustments

B. Spousal benefitsB. Spousal benefits

C. Widow & Widower’s insurance C. Widow & Widower’s insurance benefitsbenefits

D. Early versus normal retirementD. Early versus normal retirement

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A. Social Security adjustmentsA. Social Security adjustments

Wage baseWage base

• Taxable wage base was Taxable wage base was

increased to $102,000 in increased to $102,000 in 2008, 2008, $106,800 in 2009$106,800 in 2009

Full retirement age Full retirement age

Basic benefits of a worker Basic benefits of a worker or survivors are reduced by or survivors are reduced by 5/9 of one percent for each 5/9 of one percent for each month the worker receives month the worker receives benefits before normal benefits before normal retirement age.retirement age.

Year of BirthYear of Birth Full Retirement AgeFull Retirement Age

<= 1937<= 1937 6565

19381938 65 and 2 months65 and 2 months





1943-19541943-1954 6666






=< 1960=< 1960 6767

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B. Spousal benefitsB. Spousal benefits

1. Spouses or divorced spouses that meet four requirements are entitled 1. Spouses or divorced spouses that meet four requirements are entitled to old-age or disability insurance benefits: to old-age or disability insurance benefits:

The spouse has filed an application for spousal benefits,The spouse has filed an application for spousal benefits, The spouse has attained age 62,The spouse has attained age 62, In the case of a divorced spouse , the ex-spouse is not married.In the case of a divorced spouse , the ex-spouse is not married. The spouse is not entitled to old-age or disability insurance The spouse is not entitled to old-age or disability insurance

benefits.benefits.2. Spousal benefits begin with the first month in which the spouse meets 2. Spousal benefits begin with the first month in which the spouse meets

the four above criteriathe four above criteria3. Spousal benefits end the month proceeding: 3. Spousal benefits end the month proceeding:

the spouse dies, the individual dies, or the spouse dies, the individual dies, or

if they are divorced, has not been married to such individual if they are divorced, has not been married to such individual for a for a period of 10 years and the the spouse has not attained age period of 10 years and the the spouse has not attained age 62 or62 or

the spousal benefit for each month is ½ the primary insurance the spousal benefit for each month is ½ the primary insurance amount.amount.

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C. Widow and widower’s insurance C. Widow and widower’s insurance benefitsbenefits

Widow or widower and every surviving divorced Widow or widower and every surviving divorced spouse of an individual who died a fully insured spouse of an individual who died a fully insured individual is entitled to their benefit and isindividual is entitled to their benefit and is

- Not married- Not married

- Meets age requirement- Meets age requirement

- Meets one of the following- Meets one of the followingHas filed an application for widow’s or widower’s benefits Has filed an application for widow’s or widower’s benefits

and is entitled to spousal benefits, or isand is entitled to spousal benefits, or is

NotNot entitled to old-age insurance benefits or is entitled to entitled to old-age insurance benefits or is entitled to

benefits which is less than the primary insurance amountbenefits which is less than the primary insurance amount

of the deceased.of the deceased.

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C. Widow and widower’s insurance C. Widow and widower’s insurance benefitsbenefits

What is the amount of the benefits ?What is the amount of the benefits ?

Generally equal to the primary insurance amount Generally equal to the primary insurance amount

(also referred to as PIA) of the deceased individual.(also referred to as PIA) of the deceased individual.

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D.D. Early versus normal Early versus normal retirementretirement

1. Remember that the FICA/SE tax 1. Remember that the FICA/SE tax base is base is $106,800 in 2009.$106,800 in 2009.

2. Excess earnings2. Excess earnings before Full Retirement before Full Retirement$1 per $3 > $36,120$1 per $3 > $36,120 in 2007 (65 Yrs + 8 in 2007 (65 Yrs + 8 mos)mos)

$1 per $2 > $13,560$1 per $2 > $13,560 age 62 to 65 Yrs, 8 age 62 to 65 Yrs, 8 mos)mos)

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D. Early versus normal D. Early versus normal retirementretirement

When to retire?When to retire?Retirement prior to normal retirement age is reduced by Retirement prior to normal retirement age is reduced by a percentage for each month. Working full-time beyond a percentage for each month. Working full-time beyond retirement age can increase their benefit.retirement age can increase their benefit.

• Each additional year adds another year of earning to their Each additional year adds another year of earning to their Social Security recordSocial Security record

• Higher lifetime earning may result in higher benefits when one Higher lifetime earning may result in higher benefits when one retiresretires

• Delayed retirement credits will be added in automatically from Delayed retirement credits will be added in automatically from the time one reaches full retirement agethe time one reaches full retirement age

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ASSET PROTECTION ASSET PROTECTION

Asset Protection Asset Protection refers to a set of legal refers to a set of legal techniques and a body of statutory and common techniques and a body of statutory and common law dealing with protecting assets of individuals law dealing with protecting assets of individuals and business entities from civil money and business entities from civil money judgments.judgments.

Medicare and Medicaid recipients need to plan Medicare and Medicaid recipients need to plan for the transfer of their assets prior to their for the transfer of their assets prior to their needing extensive care or living arrangements. needing extensive care or living arrangements.

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REVERSE MORTGAGES REVERSE MORTGAGES

Why do they have a bad reputation?Why do they have a bad reputation?

Should you consider if over age 62?Should you consider if over age 62?

What about your heirs?What about your heirs?

Who can you trust? Who can you trust?

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LONG-TERM CARE INSURANCELONG-TERM CARE INSURANCE

When to start funding for possible assisted When to start funding for possible assisted

living programs or LTC.living programs or LTC.

BEWARE !!!BEWARE !!!Long – Term Care is not just for the elderly!Long – Term Care is not just for the elderly!

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LEGAL DOCUMENTATION LEGAL DOCUMENTATION

Estate Planning, Wills & TrustsEstate Planning, Wills & Trusts

Probate Issues Probate Issues

Appointing a Health Care SurrogateAppointing a Health Care Surrogate

Durable Power of Attorney designationsDurable Power of Attorney designations

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Thank you for attending today. Thank you for attending today.

Be well and protect the assets of your Be well and protect the assets of your family and clientele by being informed and family and clientele by being informed and be prepared to calmly face whatever life be prepared to calmly face whatever life throws our way. throws our way.

social security planning what about the retiree?

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