There are many reasons clients might delay claiming Social Security benefits. At our firm, once we’ve cleared up common misconceptions with our clients, they’re often more open minded about hearing possible reasons for a delayed strategy. Many had never thought of these reasons before. Have you?
When and how your clients claim Social Security benefits is one of the bigger decisions they’ll face as they transition from their working years into post-working years. For many folks, Social Security will be one of their largest retirement resources, and it’s often the most mismanaged.
Whether your clients file their taxes with the assistance of an online preparation service or by working with you or a tax professional, they may have been advised to contribute to a qualified plan like an IRA in order to minimize their previous year’s taxes. Where clients have allocated their resources may increase their taxes in retirement and contribute to determining their Required Minimum Distributions (RMDs).
One of the most engaging topics that I cover in my Social Security education class is the impact of taxes. Most attendees at my workshops don't know that their Social Security benefits may be subject to tax. Of those few who do know, many are unsure as to how it is determined, and how much tax they are likely to pay.
FOR PRODUCER USE ONLY. NOT FOR USE WITH CLIENTS.
This content is for informational and educational purposes only and is not designed, or intended, to be applicable to any person's individual circumstances. It should not be considered as investment advice, nor does it constitute a recommendation that anyone engage in (or refrain from) a particular course of action.