• Find An Advisor
  • Home
  • About
    • About
    • Endorsements
  • Value of NSSA®
  • Class Schedule
  • Advisors
    • Code of Conduct
    • Become an Advisor
  • Directory
  • FAQ
  • Contact

Monthly Archives: June 2021

Situational Social Security

Situational Social Security – Spousal Benefits

June 4, 2021 admin Leave a comment

FOR ADDITIONAL TIPS AND CUTTING EDGE STRATEGIES PLEASE ATTEND THE NATIONAL SOCIAL SECURITY ADVISOR CERTIIFICATE PROGRAM EDUCATION.  WWW.PREMIERNSSA.COM.

We emphasize SITUATIONAL SOCIAL SECURITY in the NSSA® Certificate program, as all your clients are UNIQUE. Your clients may be single, married with wide age differences, married with narrow age differences, divorced, surviving spouses, eligible to file a Restricted Application, children, public employees, etc. Advisors, (YOU), must understand the issues and questions that relate to every unique client. You are your clients’ trusted advisor and must understand Social Security.

My partner, Jim Blair, worked for the Social Security Administration for 35 years and retired in January, 2010. Jim and I began our journey together at that time to help folks to understand and maximize their Social Security benefits. In January 2013, we created the National Social Security Advisor Certificate program. To date, 2,500 advisors across the country have earned the NSSA® certificate.

In this installment of Situational Social Security, (SSS), we are going to discuss spousal benefits.  In our class we spend significant time discussing spousal benefits as this is a key factor in deciding when spouses should begin benefits.  First, the rules for YOU to collect off YOUR spouse:

  1. You must be at least age 62
  2. Your spouse MUST be COLLECTING a RETIREMENT or DISABILITY benefit.
  3. Marriage duration – 12 continuous months
  4. Spousal benefit is equal to 50% of other spouse’s PIA (FRA benefit)

You can see that your spouse must be receiving a Social Security RETIREMENT or DISABILITY benefit.  Thus, a husband must be receiving a benefit so his wife can receive a spousal benefit.  The opposite is also true.  A wife must also be receiving a RETIREMENT or DISABILITY benefit so her husband can receive a spousal benefit.  Does a husband (or wife), turn on benefits at FRA so a spousal benefit can be paid?  Or does the husband/wife wait to age 70, thereby, maximizing DRCs, but delaying the payment of a spousal benefit?  You as the advisor will help your client make this decision.

How much is a spousal benefit?  Easy – 50% of spouse’s PIA.  PIA or Primary Insurance Amount is the amount of benefit that an individual receives at Full Retirement Age.  Assume that my PIA is $2,000 and that my FRA is June 2022.  I will receive $2,000 if I begin in June, 2022.  My benefit will be reduced if I begin prior to June, 2022 and will be increased if I begin after that month.  Half of PIA actually means half of PIA!  If I begin my benefits at age 62, my wife will still receive half of my PIA or $1,000 at her FRA.  If I begin my benefits after reaching FRA, my wife will still receive half of my PIA.

For example, assuming my FRA is age 66 and I begin at age 62, I will receive $1,500.  If I begin at age 70, I will receive $2,640.  In either situation, my wife will receive half of my PIA or $1,000 at her FRA.  If she begins the spousal benefit at age 62, the spousal benefit is reduced by 30% to $700. So, it does not matter if I begin benefits prior to FRA or after FRA, my wife still ONLY receives 50% of my Primary Benefit Amount (PIA).

Spousal benefits do not increase beyond Full Retirement Age, so there is no reason to begin a spousal benefit after FRA, unless not eligible.  Of course, to be eligible for a spousal benefit, the other spouse must be receiving a retirement or disability benefit.

Restricted Application – Tom and Barbara came in last week and met with Jim Blair. Tom and Barbara have been married for 25 years. Tom was born January 25, 1952. Tom asked if the strategy to collect a spousal benefit is still available.  Jim indicated that Tom is referring to the Restricted Application and that this strategy is available to folks born by the MAGIC birthday of January 1, 1954.  Jim indicated that when Barbara turns on her benefits, Tom can file a Restricted Application to collect a spousal benefit while at the same time his own retirement benefits are accruing the Delayed Retirement Credits.  The Restricted Application is a very valuable strategy – like having your cake and eating it too.  Tom is receiving a spousal benefit while accruing DRCs on his own work record.  Unfortunately, this strategy will be completely phased out by December 31, 2023. Advisors must be aware of client’s birthdates and take advantage of the Restricted Application when appropriate.

Surviving Spouse Benefit – Frequently, the main factor when to begin SS benefits is the impact on a surviving spouse benefit. Generally, the husband will pass away before the wife and is the higher income earner.  If he begins prior to his FRA, the reduction may last two lifetimes.  If he begins after FRA up to age 70, the increase may also last two lifetimes.  Should the husband begin at Full Retirement Age or should he begin at age 70? Be sure to factor in the importance of a surviving spouse benefit when deciding when to begin benefits.

Common Strategy – If the wife is also eligible for Social Security benefits, a strategy gaining in popularity is for the wife to file for her benefits at age 62.  Beginning benefits at age 62, might allow her husband to wait to FRA or even to age 70.  AND, if he was born by the MAGIC birthdate of January 1, 1954, he can file a Restricted Application to receive a spousal benefit while his benefits increase for the Delayed Retirement Credits.

FOR ADDITIONAL TIPS AND CUTTING EDGE STRATEGIES PLEASE ATTEND THE NATIONAL SOCIAL SECURITY ADVISOR CERTIIFICATE PROGRAM EDUCATION.  WWW.PREMIERNSSA.COM.

For additional information about the National Social Security Advisor Certificate program, please visit www.premiernssa.com or contact Marc Kiner at 513.218.8505 or by email at mkiner@mypremierplan.com.

Archives

  • November 2021
  • September 2021
  • June 2021
  • December 2020
  • November 2020
  • October 2020
  • July 2020
  • June 2020
  • April 2020
  • October 2019
  • September 2019
  • July 2019
  • September 2018
  • October 2016
  • November 2015
  • August 2015

Categories

  • General
  • Hey Marc
  • Situational Social Security
  • Uncategorized

Meta

  • Log in
  • Entries feed
  • Comments feed
  • WordPress.org

Recent Posts

  • Hello world!
  • Social Security Benefits: Surviving Spouse – Deemed Filing
  • Social Security Benefits: Delayed Retirement Credits
  • Social Security Online Account – Second Factor Authentication
  • Situational Social Security – Spousal Benefits

Recent Comments

  • A WordPress Commenter on Hello world!

Testimonials

Thank you and Jim for the incredible work and effort put into these webinars, videos etc. let alone this program. Really a blessing to have been directed to you. Karl W was absolutely right; you guys are class acts.
Alan K.
Just want to say it’s really great having you two to lean on when I’m uncertain. You’ve trained me well but sometimes I question myself. Thanks for doing what you do!
Barbara S. (Colorado)
I am very pleased that I came to the education... What I learned is what I came for and to know that the video will be available for backup is great.
Bob Z.
I hope all is well my friend. We filled up another 100 people last month and taught them all about social security, this is truly something special we have created to help out thousands of San Diegans and counting.
Brad W. (California)
I am enjoying the course and love the conversation between you guys on the videos, especially the trials and tribulations of party animal ”Harold”
Chris K. (Connecticut)
I appreciate that you are always there to support me. It means a lot!
Danielle A. (Kansas)
I thought the information was outstanding! I was anxious to get started and improve my foundation of knowledge surrounding social security as it has become a significant portion of our planning.
David G. (Florida)
Over the last 12 months since earning the NSSA certificate I have brought in 40 additional clients and $400,000 in additional revenues.
David S. (Washington State)
You guys' rock! Iam thoroughly enjoying your SS online course!
David T. (Florida)
Social Security is a complex program where the choices you make can mean thousands of dollars of extra earnings in retirement. Knowing these choices is important to my clients and NSSA [Certificate program] has increased my ability to guide them in the right direction.
James B.
I really appreciate your examples; they make it come alive more so than articles describing strategies.
John
I attended your class and passed the NSSA assessment 2 ½ years ago. The NSSA Certificate has been a career boost and my clientele is reflecting that.
Kimberly H. (Ohio)
Thanks for the SS training last week! Learned a lot and looking forward to further focus on this important part of the financial planning matrix!
Leslie C. (Kentucky)
You guys helped close a big case with that answer, really appreciate it. Thank you for the great work you both do.
Patrick C. (California)
Thanks for providing such valuable information and updates on a periodic basis. It really helps with conversations that I have with my clients. Excellent support.
Rayyan A.
Thanks again for the great training. I started using the information I learned with my clients immediately. It has really added to my credibility!
Rich M. (Texas)
This course has been very helpful to clients already, thanks again, Sam.
Sam D. (Connecticut)
Thanks again for the training you provided it has been invaluable for my practice.
Stacy A. (Tennessee)
It was so nice talking with you yesterday. I was super impressed how quickly you called me!
Susan C. (Florida)
I finished the on demand class today... I really enjoyed the class and learned a lot.
Adam H. (Illinois)
Previous
Next

Featured On

Marshall Heitzman
Martin J Dolph
Martin Kraft
Mary Atkinson
Maryann MacKnight

COPYRIGHT © 2021. National Social Security Association, LLC. ALL RIGHTS RESERVED | DISCLAIMER

Facebook-f Twitter Linkedin-in

Contact Info

National Social Security Association, LLC
7361 East Kemper Road Unit B
Cincinnati, Ohio 45249

513-218-8505 (Cell)
513-247-0526
1-800-518-0761