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Social Security benefits have been the cornerstone of American retirement for over 70 years. For most people, Social Security retirement income is the single source of income that collectively protects against inflation risk, market risk and longevity risk. Therefore, when it comes to figuring out how to successfully transition your clients from the asset accumulation to the asset distribution phase of their financial plan, Social Security benefits are an integral piece of the puzzle that cannot be downplayed, regardless of your clients’ wealth.

After years of amendments and tax law changes, the process of filing for Social Security benefits and, more importantly, when to begin receiving them, can be an intimidating task full of variables unknown by even the savviest client. Factors such as income, total assets, asset liquidity, health status and life expectancy expectations, family dynamics and life goals should all be considered in the determination of how and when to receive Social Security benefits. Consider that 90 percent of Americans aged 65 and above receive Social Security benefits.¹

The question isn’t if Social Security benefits will impact your clients’ retirement goals but when. As you can see, the decisions surrounding selecting Social Security benefits can get quite complex, and making uneducated decisions about how and when to pull the benefit “trigger” can have unanticipated financial repercussions for your clients’ ultimate retirement goals. Simply put, Social Security represents a huge opportunity for you, the agent, to gain credibility and add value to your clients by bringing knowledge on a subject that will affect virtually all of them. Bundling Social Security into your message of helping your clients achieve a secure, comfortable retirement will put you a step ahead of other financial professionals, and you may be able to identify potential income gaps where you could offer a fixed annuity as a potential solution. To that end, you will be an indispensible resource to your clients, colleagues, friends and family.

¹Social Security Administration: Social Security Basic Facts (www.ssa.gov)

Please note that GamePlan Financial Marketing, LLC, its affiliated companies, and their representatives and employees do not give legal or tax advice. Not affiliated with the U.S. Government or any governmental agency.