Deciding when and how to take Social Security is a critical aspect of any retirement plan and may be different for each client. Learn how to become Social Security savvy. Also, learn how: -Determine your clients' full retirement age -Estimate their SS income -Weigh the trade-offs between early income & delayed higher income -How to supplement SS benefits -Understand new SS changes for 2016

1. Social Security
What You Need to Know to Help Maximize
Your Retirement Income

2. Choosing when to start Social Security
payments may be one of the most
important decisions you make in the
retirement income planning process
It can have a significant impact on
how much guaranteed income you
and your spouse receive for life!

3. For example, if you were 60 years old with
maximum career earnings and started
benefits at age 66:
You could receive more than $630,000 over
the next 20 years
Source: www.socialsecurity.gov
And that’s not even including annual cost of
living adjustments or spousal benefits if
you’re married!

4.  Understanding Your Choices
 How to Decide When to Start
 Strategies to Help Maximize
Your Retirement Income

5. Understanding Your Choices
1. Take early payments (age 62-64)
2. Start benefits at Full Retirement
Age (age 65-67 depending on your
year of birth)
3. Delay and get even more (from
Full Retirement Age to age 70)
4. Capitalize on spousal benefits
5. Enhance survivor income
The later you claim, the more you can receive!
Year of
Birth
Full Retirement
Age
1943-54 66
1955 66 + 2 months
1956 66 + 4 months
1957 66 + 6 months
1958 66 + 8 months
1959 66 + 10 months
1960 and later 67
Source: Social Security Administration

6. Option 1: Take It Early
If you begin benefits at age 62 and
your Full Retirement Age is:
Your $1,000 benefit will
be reduced to:
That’s a percentage
decline of:
66 $750 -25%
66 and 2 months $741 -26%
66 and 4 months $733 -27%
66 and 6 months $725 -27%
66 and 8 months $716 -28%
66 and 10 months $708 -29%
67 $700 -30%
Social Security can begin as early as age 62, but benefits will
be reduced by as much as 30%
Source: Social Security Administration

7. Option 2: Start at
Full Retirement Age
You’ll receive at least 100% of your Social Security benefits if
you claim at Full Retirement Age or later
Plus, you’ll have the opportunity to add
more earnings to your work record
Social Security
benefits are based
on the average of
your 35 highest
years of earnings
Work longer and
potentially increase
your average earnings

8. Option 3: Delay and
Get Even More
Year of Birth
Yearly Rate
of Increase
1935-1936 +6.0%
1937-1938 +6.5%
1939-1940 +7.0%
1941-1942 +7.5%
1943 or later +8.0%
Waiting until after your Full Retirement Age to begin payments
can increase your benefits by up to 8% a year
 The yearly rate of increase
depends on your year of
birth
 Increases end after you
reach age 70, even if you
continue to delay taking
benefits
Source: Social Security Administration

9. Option 4: Capitalize on
Spousal Benefits
 Married individuals can claim the greater of
their own benefit or 50% of their spouse’s
benefit at Full Retirement Age (FRA)
 Spousal benefit is reduced up to 35% if
claimed prior to the recipient’s FRA
 Divorced spouses can receive spousal
benefits if marriage lasted at least 10 years
and recipient is currently unmarried

10. Option 5: Enhance Survivor Income
 Widow(er)s can keep their own benefit or switch
to the deceased spouse’s benefit if it is higher
 Survivor benefits are available as early as age
60 (age 50 if disabled) but they will be reduced
by up to 28.5% if claimed before the recipient’s
Full Retirement Age

11.  Understanding Your Choices
 How to Decide When to Start
 Strategies to Help Maximize
Your Retirement Income

12. 5 Keys to Deciding When to Start
1. Estimate your Social Security benefits
2. Consider how long your retirement will last
3. Determine if you want to continue working
4. Look at the tax consequences
5. Evaluate spousal opportunities

13. Estimate Your Benefits
 Determine how much income you’ll need to retire
 Use the online calculator at www.ssa.gov/estimator to see
how much you’ll receive from Social Security
PLANNING TIP: Use the results to help you determine if
it makes sense to delay or start right away
[ ]

14. Age Begin at Age 62 Begin at FRA of 66 Begin at Age 70
62 $9,000 $0 $0
66 $45,000 $12,000 $0
70 $81,000 $60,000 $15,840
75 $126,000 $120,000 $95,040
78 $153,000 $156,000 $142,560
80 $171,000 $180,000 $174,240
82 $189,000 $204,000 $205,920
Consider How Long Your
Retirement Will Last
PLANNING TIP: Investors who expect a shorter retirement
may want to claim early, even with reduced benefits
Longevity plays a key role in determining which option is best
Total Benefits by Age and Start Time
Note: This illustration assumes a monthly benefit of $1,000 at Full Retirement Age.
◄ Breakeven
[ ]
◄ Breakeven

15. Benefits are
reduced $1 for
every
Earned
over
$2 $15,720 In calendar years before FRA is reached
$3 $41,880
In the calendar year in which FRA is reached
(until the month of FRA)
Determine If You Want to
Continue Working
If you work and take benefits prior to your Full Retirement Age
(FRA), some of your benefits may be withheld
Note: The income threshold in this table is for 2015. Source: Social Security Administration Fact Sheet.
PLANNING TIP: Any amounts withheld are only temporary.
They’re added back to your benefits after you reach Full
Retirement Age, so there’s no penalty for working longer.[ ]

16. Look at the Tax Consequences
Depending on how much you earn, you could pay tax on up
to 85% of your Social Security benefits!
PLANNING TIP: To help minimize taxes, make sure your
total income does not exceed the threshold amounts.
[ ]

17. Evaluate Spousal Opportunities
 Coordinate benefits between both spouses to help increase
overall income
 Each spouse has the opportunity to receive both spousal
benefits AND their own benefits at different times. For example:
PLANNING TIP: Combine early and delayed benefits to help
maximize retirement income for married couples.
Age 66:
Claim spousal
benefit
Ages 67-69:
Delay own benefits
to maximize future
payments
Age 70:
Take own benefits
for higher income
[ ]
Keep in mind, in light of the Bipartisan Budget Act of 2015, these Social Security
filing strategies may no longer be available to everyone.

18. Don’t Overlook Survivor Benefits
 When you begin Social Security payments can
increase the survivor benefit for your spouse
 A surviving spouse should consider which option would
provide a higher benefit—their own earnings or the
survivor benefit
PLANNING TIP: If the survivor benefit is higher, avoid taking it prior to your
Full Retirement Age or your benefit will be reduced by up to 28.5%.
[ ]

19.  Understanding Your Choices
 How to Decide When to Start
 Strategies to Help Maximize
Your Retirement Income

20. Important notice concerning changes
to Social Security for future recipients
The Bipartisan Budget Act of 2015 resulted in a
number of major changes to Social Security,
including the availability of certain filing strategies
for future recipients
Important Note: This material about Social Security is provided for educational purposes only and does not
constitute tax, legal, or other individualized advice. It is based on currently available information and subject
to change once final rules are published by the Social Security Administration.
While the information about Social Security contained herein has been obtained from sources deemed reliable,
American International Group, Inc. (including its subsidiaries, distributors and representatives) cannot be held
responsible for any direct or indirect loss resulting from the application of the information provided here. Individuals
should consult a qualified tax professional or attorney regarding their specific situation.

21. Changes to Spousal Benefits
Filing a Restricted Application
 If you are younger than age 62 on 1/1/16, you will no longer
be able to claim just the spousal benefit by filing a restricted
application. If you are entitled to both your own individual
benefit (based on your own earnings record) and a spousal
benefit, you will automatically receive the greater of the two
benefits to which you are eligible.
 As a result, you will no longer be able to claim a spousal
benefit only and switch to your individual benefit later.
 If you are currently age 62 or older (or will reach age 62 by
12/31/15), you continue to have the option to file a restricted
application for a spousal benefit only provided you do not file
for benefits before your Full Retirement Age and your spouse
has either filed for and is receiving benefits or filed and
suspended prior to 5/1/16.

22. 1. Start Now and Get More Later
Combine early and delayed benefits for married
couples to generate more income
 With this strategy, the low-earning spouse starts
income right away at age 62
 The high earner takes spousal benefits at Full
Retirement Age (age 66), delaying his or her own
benefits for maximum income
 At age 70, the high earner takes his or her own
benefits and the low earner switches to spousal
benefits to generate higher income

23. Monthly
Income at
Age 62
$750
Monthly
Income at
Age 66
$1,250
Monthly
Income at
Age 70
$4,118
Total Benefits
Paid at Age
90
$1,133,736
Example: Generate $215,016 More
Income Over 28 Years!
Note: Illustration does not reflect any cost of living increases.
Start Now and Get More Later
Assumptions: Fred and Jane are married; they are 62 years old with Full Retirement Age
(FRA) at 66; and their Social Security benefit at FRA is $2,400 for Fred and $1,000 for Jane
That’s $215,016
more than if Fred
and Jane had both
elected early
benefits at age 62
 Fred takes his
full delayed
benefit ($3,168)
 Jane elects
spousal benefits
to generate more
income ($950)
 Jane takes a
reduced early
benefit ($750)
 Fred elects spousal
benefits and receives
half of Jane’s benefit
($500)
 Jane continues her
own benefit ($750)

24. Change to “File & Suspend” Strategy
 After 5/1/16, this filing option will no longer be available for
purposes of triggering benefits for a spouse or dependents,
such as a minor child.
 If you are currently age 66 (or will reach age 66 prior to
5/1/16), you may elect the “File & Suspend” option provided
you do so prior to 5/1/16.
 Please keep these changes in mind when reviewing the
following example.

25. 2. File and Suspend
 This strategy allows the low-earning spouse to receive
payments equal to 50% of the high earner’s benefit
 Plus, the high earner continues to delay payments,
accruing credits for more guaranteed income at age 70
Help maximize income by filing for benefits at Full
Retirement Age and then suspending receipt until age 70

26. Example: Generate $78,336 More
Income Over 24 Years
Note: Illustration does not reflect any cost of living increases
File and Suspend
Assumptions: Charlie and Mary are married; their Full Retirement Age (FRA) is 66; and
their Social Security benefit at FRA is $2,400 for Charlie and $1,000 for Mary
Monthly Income at
Age 66
$1,200
Monthly Income at
Age 70
$4,368
Total Benefits Paid
at Age 90
$1,158,336
That’s $78,336
more than if
Charlie had not
suspended his
benefit at age 66!
 Charlie takes his own
benefit ($3,168)
 Mary continues
spousal benefits
($1,200)
 Charlie files and suspends
his benefit ($0)
 Mary elects spousal
benefits and receives half
of Charlie’s benefit
($1,200)

27. 3. Claim Survivor Benefits Early
 This strategy provides the surviving spouse with
additional income from age 60 to 69
 Plus, by delaying payments until after Full Retirement
Age, the high earner can receive the maximum
amount of Social Security benefits based on his or
her own earnings at age 70!
For high-earning widow(er)s, consider starting survivor
benefits at age 60 to help increase overall income

28. Example: Receive an Additional
$85,800 in Survivor Benefits
Survivor Benefits Strategy
Assumptions: Bob and Cindy are married; they are 60 years old with Full Retirement Age
(FRA) of 66; their Social Security benefit at FRA is $2,400 for Bob and $1,000 for Cindy; and
Cindy dies at age 60.
Monthly Income at
Age 60
$715
Total Benefits Paid
from Ages 60-69
$85,800
Total Benefits Paid
from Ages 70-90
$760,320
That’s $85,800 in
survivor benefits that
would have been lost
if Bob did not take
advantage of these
benefits!
 Bob claims survivor
benefits and receives
71.5% of Cindy’s
benefit ($715)
 Bob takes his own
benefit from age 70-90
($3,168)
Note: Illustration does not reflect any cost of living increases

29. 4. Build an Income Bridge to Help
Increase Future Benefits
 If you decide to retire later, you may need to bridge the
potential income gap with retirement sources other than
Social Security
 Possible solutions:
• Fixed annuities
• Variable annuities with optional income benefits
• Retirement accounts like IRAs or 401(k)s
• Mutual funds
• Earnings from work

30. Choosing the Right Option for You
 Carefully think through your Social Security strategy before
submitting your benefit claims
 Be sure to ask yourself:
• When do I really want to retire?
• How do I want to spend my retirement?
• Do I have the right strategy to achieve my goals?
I am always available to answer questions and to make
sure your retirement income strategy remains consistent
with your long-term financial goals.

31. Make the Most of Your Social
Security Benefits Today!
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Thank you for attending!