Expert Commentary

New Research Released By Meyer and Reichenstein on Strategies for Singles

New research on Social Security strategies for singles was released today in the Retirement Management Journal. This report complements Meyer and Reichenstein’s research on Social Security strategies and illustrates the knowledge and expertise that is the foundation of Social Security Solutions’ advice.

The research extends previous knowledge that singles should only consider “breakeven” analysis. The work illustrates important filing dates and ranges where a single person should never claim benefits.

Our New Research is Out!

The Journal of Financial Planning just published our research in the April edition.

I’m very proud of this work and want to give you some of my thoughts. I see this research as a large “breakthrough” for retirees and improving financial advice. Overall, the premise of the research is so simple it makes sense! If you get more Social Security, your money will last longer.

1. Deciding when to take Social Security is the largest decision you will make in your life. We showed that this decision adds 2 to 10 years to the length of how long your savings will last depending on your affluence.
2. The amont you have saved doesn’t matter. You should consider a strategy that maximes because it will have a huge impact on your financial situation. Note, the greatest impact is for families that haven’t saved as much. For example, someone who has $200,000 of savings can add +10 years of longevity to their money by maximizing Social Security.
3. This is the first study that addresses Social Security and taxation in the retirement income literature about the “4% rule.” It is crazy to me that there are all these “rules of thumb” that exclude the biggest elements that will impact your retirement strategy…taxes and Social Security.

I’ll post more about the research over time. But, here is the bottom line: 1) if you haven’t started Social Security, definitely spend time learning about creating a smart strategy to get more money, and 2) if you have started Social Security, make sure you withdrawal other saving you have to minimize the taxation of Social Security. We’ve developed tools to help you with this. Also, we can give you some educational pieces or guide you.

People, by carefully integrating Social Security into your financial plan every year can add thousands of dollars back into your pocket.

So, I’m proud to share our research with you and the financial services industry. We worked on this for a long time. I’m hopeful other institutions can use these ideas to help more Americans live better in retirement.

http://www.fpanet.org/journal/HowtheSSClaimingDecisionAffectsPortfolioLongevity/