Some financial advisers enjoy the challenge of delving into the weeds of Social Security rules and claiming strategies by incorporating sophisticated software programs into their retirement income practice. Others do not.
Now that Congress has eliminated some of the key Social Security claiming strategies for all but a select group of near and current retirees who are grandfathered under existing rules based on their birth dates, some advisers wonder whether it is worth investing their time and money to learn about Social Security options that are disappearing.
Now there is a service designed especially for them.
Social Security Advisors plans to unveil its new concierge service by year-end. Think of it as the Uber of Social Security claiming strategies.
“Our Social Security Concierge service is geared towards financial advisers who want to help their clients make the best Social Security decision possible and maximize their benefits while also making it convenient, easy and cost-effective for the financial adviser,” said Matthew Allen, chief executive New York City-based Social Security Advisors.
“It is the perfect solution for advisers who don't want to spend the time or money learning new software, marketing programs or undergoing Social Security training, but who still want a trusted resource and experts that can handle their clients' Social Security questions,” Mr. Allen said.
As part of the service, clients receive a customized Maximum Social Security Strategy report which details exactly when and how to file to maximize their Social Security Benefits. One of the members of the Social Security Advisors network will review the report with the client over the phone or during a conference call with the client and you, their financial adviser. Telephone consultations are available during the weekday, evenings and on weekends.
The Social Security Concierge Services carries a one-time fee of $124.95 per client case with discounts available for volume.
ONLINE APPLICATIONS
Identifying a Social Security claiming strategy is just the first step. Implementation is key. Most clients — and advisers — would sooner volunteer for a root canal rather than camp out in their local Social Security office waiting to apply for benefits.
The company can also file for your client's Social Security benefits on their behalf, saving them significant time and hassle dealing with the Social Security Administration while ensuring the accuracy of their application. An additional fee of $99.95 per filing applies.
Or, if you'd rather not get involved in your clients Social Security claiming decisions, the company offers standalone Social Security filing assistance through its consumer-facing site
ApplyForSocialSecurity.com.
For a $99.95 fee, a member of the Social Security Advisors network will consult with your client via phone and internet and ask to take over their screen like a typical computer diagnostic consultant. Together they will complete the online Social Security application. The consultant will turn the screen back over to the client for their electronic signature and so they can hit the send button, fulfilling the requirement that the applicant sign and send the online form.
Your clients have only a brief window to take advantage of certain Social Security claiming options under existing rules.
CLAIMING STRATEGIES
Clients who are 66 or older can file and suspend their Social Security benefits before the April 30, 2016, deadline and still trigger auxiliary benefits for a spouse or minor dependent child while their own benefits continue to earn delayed retirement credits of 8% per year up to age 70. Those who claim Social Security after the deadline will still be able to earn delayed retirement credits, but no family members will be able to collect any benefits on their earnings record during the suspension period.
Clients who file and suspend benefits before the April 30, 2016, deadline also reserve the right to request a lump sum payout of suspended benefits instead of the 8% per year delayed retirement credit. This option disappears for clients who file and suspend after the deadline.
There is a second group of clients who can benefit from a different disappearing claiming strategy. Anyone who is 62 or older by the end of 2015 retains the right to claim only spousal benefits when they turn 66, allowing their own Social Security retirement benefits to continue to grow by 8% per year up to age 70 when they can switch to their own maximum benefits.
This applies to both currently married spouses and divorced spouses who were married at least 10 years and are currently single.
But in order to claim spousal benefits only, the other spouse must already be collecting his or her Social Security benefits or old enough to be grandfathered under the file-and-suspend rules. Divorced spouses can collect on an ex's earnings record, regardless of whether the former spouse has claimed benefits, as long as both former spouses are at least 62 years old and they have been divorced at least two year.
Clients who are younger than 62 by the end of 2015 will no longer be able to claim spousal benefits only when they turn 66.
Mary Beth Franklin is a certified financial planner.
