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Social Security Income Planner

Prepared Especi al l y for:


Mr. & Mrs. John Doe


May 22, 2014


Prepared By:

Thomas R. Hager, CPA, CGMA, NSSA
A Certified National Social Security Advisor







TABLE OF CONTENTS

Report on Analysis ...................................................................................................................................... 1

Choosing When to Collect Benefits for Married Couples ........................................................................... 2

Demographics ............................................................................................................................................. 3

Social Security Statements .......................................................................................................................... 4

Top Strategies Summary ........................................................................................................................... 10

Alternative Strategies Summary ............................................................................................................... 11

Top Strategy Timeline .............................................................................................................................. 12

Cash Flow Graph ....................................................................................................................................... 13

Top Strategy Analysis
Top Strategy #1 70/62 with Primary Spousal ...................................................................... 14
Top Strategy #2 70/62 .......................................................................................................... 16
Top Strategy #3 70/66 .......................................................................................................... 18
Top Strategy #4 70/70 with Primary Spousal ...................................................................... 20











REPORT ON ANALYSIS
May 22, 2014

Mr. & Mrs. John Doe
456 Anywhere Avenue
Maintown, USA 11111-111

Dear Mr. & Mrs. Doe

We have prepared and enclosed our Social Security Income Planner dated May 22, 2014. The purpose of
the report is to assist you in making an informed decision regarding your options for filing Social Security.
Social Security is a very important part of your retirement income. When to start taking benefits should be
as carefully considered as any other financial decision that affects your future. It is a decision that will
affect your family as long as you live. You paid your taxes, you earned it. It makes sense to make a careful,
thoughtful decision.
Determining when to claim your Social Security benefits is not only an important decision, but also a
complicated one for most people. Because the Social Security program is designed to handle many
different situations, the regulations covering who can get which benefits and at what age are numerous
and complex. Even if someone is familiar with all of the provisions that might affect their choice, it can be
extremely difficult to determine the optimal strategy. Schlabig & Associates, Ltd. examined your selected
benefit dates and 23,277 additional date combinations to find the highest value for your lifetime benefits.
Our report is based on information you provided to us during our initial meeting. Schlabig & Associates,
Ltd uses educational calculators designed to give you some input in mapping out your financial future, but
should not be acted upon as a complete financial plan. Our options are a tool for helping you think
through your economic future.
Our "suggestions" should be viewed as informative inputs into your own decision-making process. The
estimates provided here may differ from the actual amounts due to legislated changes in Social Security
provisions of which we are unaware. These projections do not take into consideration an inflation rate. All
amounts are in todays dollars.
On the following pages we will discuss the options available to you and, assist you in deciding which
scenario best fits you and your lifestyle.



Thomas R. Hager, CPA, CGMA, NSSA
Managing Partner


Choosing When to Collect Benefits for Married Couples

If you are married, you or your spouse, but not both, at least not simultaneously, can potentially collect a spousal
benefit based on your partner's work history. If you apply for your retirement benefit early (before full
retirement age) you will be deemed to be applying of your spousal benefit as well provided your spouse is either
collecting his/her retirement benefit or has filed for his/her retirement and suspended its collection.
If you are married and apply for your spousal benefit early and are eligible to receive it because your spouse is
either collecting a retirement benefit or has filed for his/her retirement benefit and suspended its collection, you
will be deemed to be also applying for your retirement benefit early as well. In this case, both benefits will be
subject to separate reduction factors.
The deeming provisions only apply at the time of initial application. Hence, if you apply for an early retirement
benefit and want to wait to full retirement to take your spousal benefit, you can do so if, as mentioned above,
your spouse is not collecting a retirement benefit at the time you apply for your retirement benefit. Furthermore,
if your spouse starts collecting his/her retirement benefit before you reach full retirement age, you still won't be
deemed to be applying for a spousal benefit. I.e., you are free to wait to retirement age to collect an unreduced
spousal benefit.
Once you reach full retirement age, if you have not yet applied for a spousal benefit and your spouse is at or
beyond full retirement age, you can apply for your unreduced spousal benefit and defer collecting your
retirement benefit until age 70. To collect your spousal benefit, your partner must either be collecting his/her
retirement benefit or have filed to collect his/her retirement benefit, but suspended its collection. By filing and
suspending his/her retirement benefit collection, your partner can defer taking his retirement benefit until age
70 and receive a higher benefit when he/she does begin collecting thanks to the delayed retirement credit.
Since Social Security's benefit calculations preclude both spouses filing and suspending and both collecting
spousal benefits on their partner's record, this tool asks you, if you are married, whether you or your spouse will
file and suspend collection benefit collection at full retirement age or whether neither spouse will do so. The tool
will find the collection dates for spousal and retirement benefits for each spouse conditional on the choice you
entered with respect to filing and suspending. Hence, you should try both choices for which spouse files and
suspends and see how the maximum present value of benefits compares in the two cases.
The ability to file and suspend and, thereby, let one spouse receive a "free" spousal benefit and let both spouses
delay taking their retirement benefits and take advantage of the Delayed Retirement Credit can make a
significant. difference to the total present value of benefits received by the household.
The total benefit you'll collect as a spouse is your own retirement benefit plus your excess spousal benefit. Your
excess spousal benefit is the difference between one half of your spouse's full retirement benefit and your full
retirement benefit IF you filed for or were forced (via deeming) to apply for your retirement benefit. Otherwise,
the excess spousal benefit is simply equal to half of your spouse's full retirement benefit. The full retirement
benefit is called the Primary Insurance Amount (PIA). So the formula for the excess spousal benefit (before any
reduction for taking spousal benefits early) is .5 x your spouse's PIA less your PIA, except that if you have never
filed for (or been forced via deeming to file for) your retirement benefit, Social Security views you as not having a
PIA for purposes of computing the excess spousal benefit. As one of the chief actuaries put it, "Your PIA doesn't
exist until you apply for it (your retirement benefit)."The bottom line here is that to get your largest possible
spousal benefit, you need to wait until full retirement to apply for any benefit and at that point apply only for
your spousal benefit.



Demographics

Husbands Information

Husbands
Name:
John Doe
Date of Birth: February 26, 1948
Heath: Good Current Age: 65
Disabled: No Date at Full Retirement Age: February 26, 2014
Actively
Working:
Yes, 3 more years
Date at age 62: February 26, 2010
Social Security
Statement
Date:
November 12, 2013
Personal Life Expectancy: 82 years (2030)
Pensions Under:
WEP:
GPO:

No
No Full Retirement
Age Benefit:
$2,069
Divorced? Yes, Not married more
than 10 Years

Wifes Information

Wifes Name: Jane Doe Date of Birth: September 20, 1955
Heath: Good Current Age: 58
Disabled: No Date at Full Retirement Age: September 20, 2021
Actively
Working:
Yes, 4 more years Date at age 62: September 20, 2017
Social Security
Statement
Date:
December 9, 2013
Personal Life Expectancy: 83 Years (2038)
Pensions Under:
WEP:
GPO:

No
No Full Retirement
Age Benefit:
$1,983
Divorced? Yes, Not married more
than 10 Years

Family Information

Eligible Children Under 19: No
Personal Financial Condition: Good



Mr. John Does Social Security Statement




Mr. John Does Social Security Statement Continued



Mr. John Does Social Security Statement Continued



Mrs. Jane Does Social Security Statement




Mrs. Jane Does Social Security Statement Continued




Mrs. Jane Does Social Security Statement Continued




Top Strategies Summary

Strategy John Jane Total
1
70/62
with
Primary
Spousal
Oct, 2017: Jane files for worker benefits ($1,478) at
age 62, 1 months for 74.58% of PIA (49 Months
Reduction).
Oct, 2017: John files for a 'restricted application' at
age 69, 8 months for 100.00% of Spousal Benefit.
($991)
Feb, 2018: Jane files for worker benefits ($2,731) at
age 70 for 132.00% of PIA (48 Months Delayed
Retirement Credit).
Widows Benefit: $2,731
$402,690 $519,379 $922,069
2 70/62
Oct, 2017: Jane files for worker benefits ($1,478) at
age 62, 1 months for 74.58% of PIA (49 Months
Reduction).
Feb, 2018: John files for worker benefits ($2,731) at
age 70 for 132.00% of PIA (48 Months Delayed
Retirement Credit).
Widows Benefit: $2,731
$398,726 $519,379 $918,105
3 70/66
Feb, 2018: Jane files for worker benefits ($2,731) at
age 70 for 132.00% of PIA (48 Months Delayed
Retirement Credit).
Nov, 2021: John files for worker benefits ($1,983) at
age 66, 2 months for 100.00% of PIA.
Widows Benefit: $2,731
$398,726 $487,748 $896,688
4
70/70
With
Spouse
Spousal
Feb, 2014: John 'claims and suspends' benefits at
age 66.
Feb, 2018: John files for worker benefits ($2,731) at
age 70 for 132.00% of PIA (48 Months Delayed
Retirement Credit).
Nov, 2021: Jane files for a 'restricted application' at
age 66, 2 months for 100.00% of Spousal Benefit.
($1,034)
Sep, 2025: Jane files for worker benefits ($2,591) at
age 70 for 130.67% of PIA (46 Months Delayed
Credit).
Widows Benefit: $2,731
$398,726 $487,748 $886,474



Alternative Strategies Summary

Strategy John Jane Total
5 65/62
Jan, 2014: John files for worker benefits ($2,057) at
age 65, 11 months for 99.44% of PIA (1 Months
Reduction).
Oct, 2017: Jane files for worker benefits ($1,478) at
age 62, 1 months for 74.58% of PIA (49 Months
Reduction).
Widows Benefit: $2,057
$401,115 $445,913 $847,028
6 70/70
Feb, 2018: John files for worker benefits ($2,731) at
age 70 for 132.00% of PIA (48 Months Delayed
Retirement Credit).
Sep, 2025: Jane files for worker benefits ($2,591) at
age 70 for 130.67% of PIA (46 Months Delayed
Credit).
Widows Benefit: $2,731
$398,726 $440,184 $838,910
7 66/66
Feb, 2014: John files for worker benefits ($2,069) at
age 66 for 100.00% of PIA.
Nov, 2021: Jane files for worker benefits ($1,983) at
age 66, 2 months for 100.00% of PIA.
Widows Benefit: $2,069
$401,386 $425,804 $827,190





Timeline of Top Strategies



Paul's Age
Susan's Age
John 2,731 $
Jane 1,478 $
4,209 $ 922,069 $
John 2,731 $
Jane 1,478 $
4,209 $ 918,105 $
John 2,731 $
Jane 1,983 $
4,714 $ 896,688 $
John 2,731 $
Jane 2,591 $
5,322 $ 886,474 $
Nov, 2021 - $1,034 Sept, 2025 - $2,591 2030 - $2,731
Claim &Suspend Worker's Benefits
Retricted Application for
Spousal Benefits
Widow's Benefits
Feb, 2018 - $2,731
Nov, 2021 - $1,983 2030 - $2,731
80
2035
Oct, 2017 - $1,478
72 73 83
2037
2030 - $2,731
Oct, 2017 - $1,478 2030 - $2,731
Feb, 2018 - $2,731
Feb, 2018 - $2,731
81
2036
82
2037
Top Strategy #2
Top Strategy #3
67
Feb, 2014 - Claim& Suspend Feb, 2018 - $2,731
68
Top Strategy #4
Top Strategy #1
63
2023 2014 2020 2015 2016 2017 2018 2019
71 72 66
59 74 69 70 64 60 61 66
2030 2031 2032 2033
78 79
82
75 76 77
79 78
71
73
2022
74
67
75
68
77 76
Total
Cummulative
over Lifetime
69
62
70 Total Worker
Benefit
Monthly at
Maximum 2034 2024 2025 2026 2027 2028 2029
80 81
65
2021
FRA
John's PIA$2,069
FRA
Jane's PIA$1,983
FRA
FRA
Oct, 2017 - $991



Cash Flow of Top Strategies
-
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
1,000,000
20142015201620172018201920202021202220232024202520262027202820292030203120322033203420352036203720382039
70/62 with Primary Spousal 70/62 70/66 70/70 with Primary Spousal


Top Strategy #1
70/62 with Primary Spousal
Summary:
Delay PRIMARY to 70, take PRIMARY spousal in meantime if possible, start SPOUSE worker ASAP.
1. SPOUSE takes SS at earliest eligibility.
2. PRIMARY takes spousal benefit if/when eligible (turns off at age 70).
3. PRIMARY delays worker benefit to age 70.
Approach:
1. With this strategy, you are delaying the initial receipt of Social Security benefits for Primary, the
higher earner until the maximum age of 70. With this approach, you create the largest SS benefit
for Primary and also the largest potential survivor benefit for Spouse. The survivor benefit payable
to Spouse would result from her inheriting Primary's benefit upon his death and her then-current
benefit would drop off. Therefore, because Spouse's benefit would drop off whether she dies first
or Primary dies first, this strategy starts Spouse's initial benefits at her earliest eligibility date.
Under this strategy, Spouse may be entitled to both a worker benefit, a spousal benefit or both.
The illustration attached will provide those benefits for you.
2. The final piece to this strategy may include a spousal benefit payable to Primary, based on
Spouse's work record. Spouse must have filed for worker benefits for Primary to become entitled
to the spousal benefit. If you are eligible for this benefit, the software indicates a spousal benefit
payable until age 70 for Primary. Primary can do this under current SS rules as he has the option of
filing a 'restricted application' for a spousal benefit once he reaches his Full Retirement Age. At
age 70, he files for his worker benefit and he flips over to that higher amount that has been
earning Delayed Retirement Credits.
Pros:
1. Creates highest SS benefit possible for (Primary) (which also maximizes COLAs since they
compound over time)
2. Creates highest SS survivor benefit possible for (Spouse) (which also maximizes COLAs since they
compound over time)
3. May become a more tax efficient strategy then taking SS early since SS income is treated more
favorably under current federal and state tax law.
4. Depending on the ages involved, may create an income stream from SS payable to (Primary), even
when is delaying own worker benefit.
5. May create higher lifetime SS income (compared to other strategies) if an additional spousal
benefit is being paid to (Primary) for a short time.
6. (Spouse) is able to generate income from SS as soon as she is eligible (or retires) which helps ease
the pain of delaying (Primary)'s worker benefit.
Cons:
1. If both Primary and Spouse die prior to their mid to late 70's, they will likely have collected more
SS income if they would have started their benefits sooner.
2. Primary and Spouse may have less financial flexibility in the event of a financial emergency since
they may be spending down their other retirement wealth sources to generate income while they
delay Primary's SS.



Top Strategy #1
70/62 with Primary Spousal - Continued
Additional Notes:
1. When Primary files for a 'restricted application' for spousal benefits, he should mention the
availability of this option to the Social Security Office under the Procedure Operations Manual
reference # RS 00202.025 and RS 00202.020

Cash Flow

Year Monthly Total Yearly Total Yearly Cumulative

2017 $ 2,469 $ 4,938 $ 4,938
2018 4,209 47,028 51,966
2019 4,209 50,508 102,474
2020 4,209 50,508 152,982
2021 4,209 50,508 203,490
2022 4,209 50,508 253,998
2023 4,209 50,508 304,506
2024 4,209 50,508 355,014
2025 4,209 50,508 405,522
2026 4,209 50,508 456,030
2027 4,209 50,508 506,538
2028 4,209 50,508 557,046
2029 4,209 50,508 607,554
2030 2,731 38,684 646,238
2031 2,731 32,772 679,010
2032 2,731 32,772 711,782
2033 2,731 32,772 744,554
2034 2,731 32,772 777,326
2035 2,731 32,772 810,098
2036 2,731 32,772 842,870
2037 2,731 32,772 875,642
2038 2,731 32,772 908,414
2039 2,731 13,655 922,069





Top Strategy #2
70/62
Summary:
Delay PRIMARY to 70. SPOUSE takes any worker and spousal benefits as soon as eligible. PRIMARY 'claims
and suspends' benefit as needed.
1. SPOUSE takes SS at earliest eligibility.
2. PRIMARY 'claims and suspends' at Full Retirement Age.
3. SPOUSE files for spousal at point PRIMARY 'claims and suspends'.
4. PRIMARY delays worker benefit to age 70.
Approach:
1. With this strategy, you are delaying the initial receipt of Social Security benefits for Primary, the
higher earner until the maximum age of 70. With this approach, you create the largest SS benefit
for Primary and also the largest potential survivor benefit for Spouse. The survivor benefit payable
to Spouse would result from her inheriting Primary's benefit upon his death and her then-current
benefit would drop off. Therefore, because Spouse's benefit would drop off whether she dies first
or Primary dies first, this strategy starts Spouse's initial spousal benefits as soon as she is eligible.
2. Under this strategy, Spouse may be entitled to both a worker benefit, a spousal benefit or both.
The illustration attached will provide those benefits for you. Depending on the ages involved, to
generate a spousal benefit payable to Spouse, Primary may need to file for his worker benefits.
Fortunately, at his Full Retirement Age, he can file for those benefits and immediately suspend
them. This way, he continues to create a larger benefit, but allows Spouse to start her spousal
benefits based on Primary's work record. This cannot be done prior to Primary reaching Full
Retirement Age so the software solves for when this can be done at the earliest. Spouse has to be
at least age 62 as well. It is important to note that if Spouse is under her Full Retirement Age
(usually 66), she cannot file for 'only' spousal benefits as any application prior to Full Retirement
Age will be deemed an application for all eligible benefits. The act of applying for worker benefits
and immediately suspending them has been coined 'claiming and suspending' but this term is not
one used commonly at the Social Security Administration.
3. It is also important to note that if Primary has 'claimed and suspended' his benefits, he cannot
apply for spousal benefits based on Spouse's work record as his 'suspended' benefits are still
active.
Pros:
1. Creates highest SS benefit possible for Primary (which also maximizes COLAs since they compound
over time).
2. Creates highest SS survivor benefit possible for Spouse (which also maximizes COLAs since they
compound over time).
3. May become a more tax efficient strategy then taking SS early since SS income is treated more
favorably under current federal and state tax law.
4. Creates an income stream from SS payable to Spouse based on Primary's work record, even when
Primary is delaying his own worker benefit.
5. Takes advantage of the fact that spousal benefits do not receive Delayed Retirement Credits if
delayed past Full Retirement Age of Spouse.



Top Strategy #2
70/62- Continued
Cons:
1. If both Primary and Spouse die prior to their mid to late 70's, they will likely have collected more
SS income if they have started their benefits sooner.
2. Primary and Spouse may have less financial flexibility in the event of a financial emergency since
they may be spending down their other retirement wealth sources to generate income while they
delay Primary's SS.
Additional Notes:
1. IF Primary 'claims and suspends' benefits, he should mention the availability of this option to the
Social Security Office under the Procedure Operations Manual reference #GN 02409.100 and GN
02409.110
Basically, the rules state that a suspended benefit for the worker does not affect benefits payable
to beneficiaries receiving SS income on that same record.
2. This cannot be done when filing on-line for benefits.
3. This illustration does not consider any benefits that you may also be payable if you have a minor
child when you file for Social Security retirement benefits.
Cash Flow

Year Monthly Total Yearly Total Yearly Cumulative
2017 $ 1,478 $ 2,956 $ 2,956
2018 4,209 45,046 48,002
2019 4,209 50,508 98,510
2020 4,209 50,508 149,018
2021 4,209 50,508 199,526
2022 4,209 50,508 250,034
2023 4,209 50,508 300,542
2024 4,209 50,508 351,050
2025 4,209 50,508 401,558
2026 4,209 50,508 452,066
2027 4,209 50,508 502,574
2028 4,209 50,508 553,082
2029 4,209 50,508 603,590
2030 2,731 38,684 642,274
2031 2,731 32,772 675,046
2032 2,731 32,772 707,818
2033 2,731 32,772 740,590
2034 2,731 32,772 773,362
2035 2,731 32,772 806,134
2036 2,731 32,772 838,906
2037 2,731 32,772 871,678
2038 2,731 32,772 904,450
2039 2,731 13,655 918,105


Top Strategy #3
70/66

Summary:
Delay PRIMARY to 70. SPOUSE takes any worker and spousal benefits at Full Retirement Age (or as soon as
benefits are available after reaching that age). PRIMARY 'claims and suspends' benefit as needed.
1. SPOUSE takes SS at Full Retirement Age.
2. PRIMARY 'claims and suspends' at Full Retirement Age.
3. SPOUSE files for spousal at point PRIMARY 'claims and suspends'.
4. PRIMARY delays worker benefit to age 70.
Approach:
1. With this strategy, you are delaying the initial receipt of Social Security benefits for Primary, the
higher earner until the maximum age of 70. With this approach, you create the largest SS benefit
for Primary and also the largest potential survivor benefit for Spouse. The survivor benefit payable
to Spouse would result from her inheriting Primary's benefit upon his death and her then-current
benefit would drop off. Therefore, because Spouse's benefit would drop off whether she dies first
or Primary dies first, this strategy starts Spouse's initial spousal benefits as soon as she is eligible to
receive the full, unreduced amount of spousal benefits. If Spouse is eligible for worker benefits
based on her own work record, these benefits would also start at her Full Retirement Age so that
she receives the full, unreduced amount.
2. Under this strategy, Spouse may be entitled to both a worker benefit, a spousal benefit or both.
The illustration attached will provide those benefits for you. To generate a spousal benefit payable
to Spouse, Primary needs to file for his worker benefits. Fortunately, at his Full Retirement Age, he
can file for those benefits and immediately suspend them. This way, he continues to create a
larger benefit, but allows Spouse to start her spousal benefits based on Primary's work record. This
cannot be done prior to Primary reaching Full Retirement Age so the software solves for when this
can be done at the earliest. And since, the goal is to provide Spouse with full, unreduced spousal
benefits, Spouse should have reached Full Retirement Age under this strategy. Therefore, to take
advantage of this strategy, both Primary and Spouse must have reached Full Retirement Age to
take advantage of the 'claim and suspend' strategy. The act of applying for worker benefits and
immediately suspending them has been coined 'claiming and suspending' but this term is not one
used commonly at the Social Security Administration.
3. It is also important to note that if Primary has 'claimed and suspended' his benefits, he cannot
apply for spousal benefits based on Spouse's work record as his 'suspended' benefits are still
active and therefore he would only get a spousal benefit in addition to his own, if that benefit was
higher than the benefit that is suspended.
Pros:
1. Creates highest SS benefit possible for Primary (which also maximizes COLAs since they compound
over time).
2. Creates highest SS survivor benefit possible for Spouse (which also maximizes COLAs since they
compound over time).
3. May become a more tax efficient strategy then taking SS early since SS income is treated more
favorably under current federal and state tax law.


Top Strategy #3
70/66 Continued
4. Creates an income stream from SS payable to Spouse based on Primary's work record, even when
Primary is delaying his own worker benefit.
5. Spouse likely receives highest available initial spousal benefit amount.
6. Takes advantage of the fact that spousal benefits do not receive Delayed Retirement Credits if
delayed past Full Retirement Age of Spouse.
Cons:
1. If both Primary and Spouse die prior to their mid to late 70's, they will likely have collected more
SS income if they have started their benefits sooner.
2. Primary and Spouse may have less financial flexibility in the event of a financial emergency since
they may be spending down their other retirement wealth sources to generate income while they
delay Primary's SS.
Additional Notes:
1. If and when Primary 'claims and suspends' benefits, he should mention the availability of this
option to the Social Security Office under the Procedure Operations Manual reference #GN
02409.100 and GN 02409.110
Basically, the rules state that a suspended benefit for the worker does not affect benefits payable
to beneficiaries receiving SS income on that same record.
Cash Flow
Year Monthly Total Yearly Total Yearly Cumulative
2018 $ 2,731 $ 27,310 $ 27,310
2019 2,731 32,772 60,082
2020 2,731 32,772 92,854
2021 4,714 34,755 127,609
2022 4,714 56,568 184,177
2023 4,714 56,568 240,745
2024 4,714 56,568 297,313
2025 4,714 56,568 353,881
2026 4,714 56,568 410,449
2027 4,714 56,568 467,017
2028 4,714 56,568 523,585
2029 4,714 56,568 580,153
2030 2,731 40,704 620,857
2031 2,731 32,772 653,629
2032 2,731 32,772 686,401
2033 2,731 32,772 719,173
2034 2,731 32,772 751,945
2035 2,731 32,772 784,717
2036 2,731 32,772 817,489
2037 2,731 32,772 850,261
2038 2,731 32,772 883,033
2039 2,731 13,655 896,688


Top Strategy #4
70/70 with Primary Spousal

Summary:
Delay both PRIMARY and SPOUSE worker benefits to age 70 and create spousal benefit payable to
SPOUSE, if possible during the meantime.
1. PRIMARY 'claims and suspends' when both reach Full Retirement Age.
2. SPOUSE files for spousal at point PRIMARY 'claims and suspends' (must also be FRA).
3. Both PRIMARY and SPOUSE file for worker benefit at age 70.
Approach:
1. With this strategy, you are delaying the initial receipt of Social Security benefits for both Primary
and Spouse until the maximum age of 70. With this approach, you create the largest SS benefit for
both Primary and Spouse. If Spouse is living when Primary dies, it is likely that she will also inherit
a larger survivor benefit and her benefit would drop off. Since both spouses are delaying their SS
worker benefits, a goal of this strategy is to generate spousal benefits in the meantime, if possible.
2. Under this strategy, the focus is on generating spousal benefits for Spouse while she is delaying
her own worker benefits. To do this, Primary may need to 'claim and suspend' his benefits to make
Spouse entitled to a spousal benefit. Spouse can choose to take only spousal benefits when she
has reached Full Retirement Age. Primary must also have reached Full Retirement Age to 'claim
and suspend' his benefits. The act of applying for worker benefits and immediately suspending
them has been coined 'claiming and suspending' but this term is not one used commonly at the
Social Security Administration. Spouse would file a 'restricted application' to have only spousal
benefits paid. The software is designed to provide the date that this option is first available. When
Spouse reaches age 70, the spousal benefit will drop off and she will step up to her higher, delayed
worker retirement benefit.
3. It is also important to note that if Primary has 'claimed and suspended' his benefits, he cannot
apply for spousal benefits based on Spouse's work record as his 'suspended' benefits are still
active and therefore he would only get a spousal benefit in addition to his own, if that benefit was
higher than the benefit that is suspended (and Spouse has filed for worker benefits -which is not
the case).
Pros:
1. Creates highest SS benefit possible for Primary (which also maximizes COLAs since they compound
over time).
2. Creates highest SS benefit possible for Spouse(which also maximizes COLAs since they compound
over time).
3. Creates highest SS survivor benefit possible for Spouse (which also maximizes COLAs since they
compound over time).
4. May become a more tax efficient strategy then taking SS early since SS income is treated more
favorably under current federal and state tax law and both earners are maximizing their benefits.
5. Creates an income stream from SS payable to Spouse based on Primary's work record, even when
Spouse is delaying her own worker benefit.



Top Strategy #4
70/70 with Primary Spousal Continued
Cons:
1. If both Primary and Spouse die prior to their mid to late 70's, they will likely have collected more
SS income if they have started their benefits earlier.
2. Primary and Spouse may have less financial flexibility in the event of a financial emergency since
they may be spending down their other retirement wealth sources to generate income while they
delay Primary's SS.
3. Actuarially speaking, if either spouse die around the average life expectancy or earlier, it may have
made more economic sense to start Spouse's benefit earlier since that lower benefit is eliminated
at the time of the first death.
Additional Notes:
1. When Primary 'claims and suspends' benefits, he should mention the availability of this option to
the Social Security Office under the Procedure Operations Manual reference #GN 02409.100 and
GN 02409.110
Basically, the rules state that a suspended benefit for the worker does not affect benefits payable
to beneficiaries receiving SS income on that same record.
2. When Spouse files for a 'restricted application' for spousal benefits, she should mention the
availability of this option to the Social Security Office under the Procedure Operations Manual
reference # RS 00202.025 and RS 00202.020
Cash Flow
2018 $ 2,731 $ 27,310 $ 27,310
2019 2,731 32,772 60,082
2020 2,731 32,772 92,854
2021 3,765 33,806 126,660
2022 3,765 45,180 171,840
2023 3,765 45,180 217,020
2024 3,765 45,180 262,200
2025 5,322 49,851 312,051
2026 5,322 63,864 375,915
2027 5,322 63,864 439,779
2028 5,322 63,864 503,643
2029 5,322 63,864 567,507
2030 2,731 43,136 610,643
2031 2,731 32,772 643,415
2032 2,731 32,772 676,187
2033 2,731 32,772 708,959
2034 2,731 32,772 741,731
2035 2,731 32,772 774,503
2036 2,731 32,772 807,275
2037 2,731 32,772 840,047
2038 2,731 32,772 872,819
2039 2,731 13,655 886,474

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