We help people retire with dignity, without risk of losing principal or gains, and create an income that our clients can't outlive. Yes, we address the issue that... "life is too long.” So, what's the point of this commentary? Give me a couple more minutes and please read on...
I just read an article in "Market Watch" that had the title, "Claiming Social Security early could lead to poverty later in life.” The article went on to say that, yes you can get the reduced amount early, but if you died early you would beat the system. Problem is, prices go up and most are sorry that they took Social Security as early as age 62.
Try this one on: in 2015, 33% of men and 40% of women took Social Security at age 62. Why? Simple, they needed the money to get by. So, is there something we can do to help? You bet, read on for just a bit longer.
If your client needs income now, take some of his cash and buy a short SPIA that will provide income until your client is age 66 plus for full benefits (maybe even age 70). Then, if possible, have him purchase an FIA with an income rider that will begin payout when the SPIA ends and tie the amount into the Social Security check the client will receive at age 70.
Remember that the Social security payout grows by 8% compound interest all the way to age 70 (that is from age 66). Plus, by waiting, the surviving spouse would get a much larger survivors check if the spouse dies.
Bottom line: we have the tools, the presentation, the script for the Personal Pension Plan. Why don't you give us a call and we will give you a Personal Pension tour. Who knows, this might increase your retirement income .
Until next time... good selling!