Just learning the basic rules of Social Security is complicated. But it's even more complex when you have really tough questions that the rules alone may not address.
Here are four questions we often hear from clients
1. I've heard about a rule that allows me to get a free loan from Social Security. How does that work?
This question is likely referring to a "Withdrawal of Application," or more commonly called the "Do-Over." There was a time when consumers could collect Social Security for a number of years, withdraw their application, pay back the benefits received, and start benefits again later at a higher payment. Unfortunately, that rule was severely curtailed in 2010. The limit placed on the "Do-Over" is that you can only withdraw an application within 12 months of receiving benefits. So if you've been collecting a Social Security check for longer than that, you can't withdraw the application and start again. On the other hand, if you are within the 12 month window, you can indeed withdraw your application, repay benefits (including spousal and other benefits paid from your work record), and restart at a later date with a higher payment.
2. I think I made a mistake by claiming benefits early. Is there anything I can do to get more money?
The answer is maybe. If the client is within the 12 month window discussed in question one, the "Do-Over" is a possibility. Another option is to voluntarily suspend (or stop) payments at full retirement age. The benefit payment will earn delayed retirement credits for each month benefits are not collected. Finally, if working is feasible, it's possible to raise the benefit amount by continuing to work and pay into Social Security.
3. I'm worried that Social Security won't last long. Should I take early and invest?
While it doesn't make the news, the reality is that Social Security is too important of a retirement program for something not to be done to restore it. Consumers can have faith that changes will be made to sustain the program for decades to come. As for taking early and investing, that's not a good idea. Social Security is inflation protected and the guaranteed return of 8% per year from full retirement age until 70 is hard to beat in today's low interest rate environment. In fact, you'd have to earn over 9% in guaranteed interest net of fees to break even.
4. My spouse and I want to take spousal benefits off of each other. Why is the Social Security office telling me that's not possible?
The rule for spousal benefits is that only one spouse can collect a spousal benefit at a time. Further, if you've already begun collecting your benefit and it's higher than the spousal benefit on your spouse's earnings record, you won't be able to collect one at all.
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SOCIAL SECURITY MAXIMIZATION
As many of you know we launched our new Social Security Maximization Service on November 21st. This service will allow our clients to obtain the highest amount of retirement dollars from Social Security. Depending on your age, marital status and life expectancy, it could be from tens of thousands of dollars to as much as a hundred fifty thousand dollars or more.
With our new Social Security Maximization Service...
- We will show you how to get your Social Security Benefits Statement directly from Social Security
- We will compile the necessary information for the Social Security Analyzer Programs
- We will input all necessary information for your customized analysis
- Using the software, we will analyze thousands of possible election strategies and identify the ones that offer the highest lifetime value at various ages.
- We will examine your Social Security Election Strategy in light of your assets, income streams and goals to identify potential conflicts. We'll help you match your Social Security decision to your overall retirement plan.
- When conflicts exist due to asset structure or income needs, we will identify alternative Social Security Strategies.
- Your detailed analysis will compare best, earliest and alternative strategies based on your goals.
- We will personally present and review your customized report and answer any questions you may have.
- We will rerun your Social Security Maximization Report every 2 years until you retire at no additional charge if you provide us with an updated Social Security Statement.
The cost of this service will be a one-time charge of $250.00. This will help us off-set the annual cost of the analyzer programs, printing, and the ongoing education that will be needed to give you up to date information.
At Bay State Insurance Agency Limited
we are ready to help you solve the Social Security Mystery.
And learn how a wise Social Security Strategy will help you
increase your Social Security Benefit for life.
Or give us a call at 410-758-1680
