Social Security: Unlock Its Potential - Hartford Funds...Social Security Trivia Mr. Ernest Ackerman First recipient of Social Security retirement benefits Received $0.17 Miss Ida May

© 2020 by Hartford Funds

Social Security:

Unlock Its Potential



Social Security Trivia

Mr. Ernest Ackerman

First recipient of Social Security retirement benefits

Received $0.17

Miss Ida May Fuller

Contributed $24.75 to Social Security

Received $22,888.92

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Source: Historical Background And Development Of Social Security, www.ssa.gov/history

© 2020 by Hartford Funds© 2020 by Hartford Funds

Social Security Snapshot

Maximum monthly Social Security retirement payment to someone retiring at age 66: $3,0111

For 2020:1

1Reflects average monthly payment at full retirement age, 2020 Social Security Changes, ssa.gov/news/press/factsheets/colafacts2020.pdf

Estimated Average Monthly Payments

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Timing

Work

Taxes

Awareness

Agenda

4© 2020 by Hartford Funds


Timing



Timing

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Birth Year FRA

1943-1954 66

1955 66 + 2 mos.

1956 66 + 4 mos.

1957 66 + 6 mos.

1958 66 + 8 mos.

1959 66 + 10 mos.

1960-Later 67

Eligible for 100% of Benefits

What’s Your Full Retirement Age (FRA)?

Source: Retirement Planner: Benefits By Year Of Birth, ssa.gov, 2020


Early vs. Delayed Filing: How It Affects Your Social Security Benefit

Amount of full Social Security benefit received (2020)1

Timing

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1ssa.gov, 2020


How Delaying Benefits May Reduce Your Tax Burden

Timing

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This chart is hypothetical and for illustrative purposes only.

Age 62 Age 70


Work



Work

How Will Working Impact My Benefit?1

At FRA

Before FRA

After FRA

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1How Work Affects Your Benefits, ssa.gov, 1/2020


© 2020 by Hartford Funds11

Work

How Will Working Impact My Benefit?


Taxes



Taxes

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How Will My Social Security Benefits Be Taxed?

Benefits may be taxable based on “Combined Income”

*Modified Adjusted Gross Income is also referred to as “MAGI.”


Taxes

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How Will My Social Security Benefits Be Taxed?1

If Combined Income is…

Less than or equal to $25,000 if you file as an

individual ($32,000 if married, filing jointly)

$25,001 - $34,000 ($32,001 - $44,000

if married, filing jointly)

More than $34,000

$34,001($44,001 if married,

filing jointly)

% of Social Security that’s taxable

1Benefits Planner: Income Taxes And Your Social Security Benefits, ssa.gov, 1/2019


Roth IRAs & Roth 401(k)s

Possible Ways to Reduce Combined Income

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Tax-freeretirement income

Taxes


Awareness



Awareness

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What You Don’t Know Can Cost You

1Retirement Benefits, Publication No. 05-10035, ssa.gov, 1/182Information For Kids And Families, ssa.gov, retrieved 1/28/193Your Retirement Benefit: How It's Figured, Publication No. 05-10070, ssa.gov, 1/184Windfall Elimination Provision, Publication No. 05-10045, ssa.gov, 1/185Benefits Planner: Retirement, Government Pension Offset (GPO), ssa.gov, retrieved 10/16/18

Can increase retirement benefits paid: Being a divorced or widowed spouse,1 or

Having a child younger than 19, or over 18 but disabled before age 22,2 or

Caring for a child who’s younger than 16 or disabled and receiving benefits2

Can decrease retirement benefits paid: Having less than 35 years of earnings history3

Windfall Elimination Provision4

Government Pension Offset5


Awareness

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Spousal Benefits: Eligibility1

Married Individuals Can Claim Benefits Based On: Their own earnings record, or

Their spouse’s earnings record

If Claiming On A Spouse’s Earnings Record: The maximum spousal benefit can be as much as 50% of the earning

spouse’s Social Security benefit

The spousal benefit cannot be claimed until the earning spouse files for benefits

Spousal benefits will be reduced if earning spouse claim’s benefits early

1How to Maximize Social Security With Spousal Benefits, money.usnews.com, 7/10/19


Awareness

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Spousal Benefits: How They’re Calculated

Benefit at FRA:

John $2,500

Angela $800

Angela is entitled to the greater of:

50% of John’s benefit

Angela’s ownbenefit ($800)

Angela’s benefit has increased from $800 to $1,250

1How to Maximize Social Security With Spousal Benefits, money.usnews.com, 7/10/19


Awareness

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Your Social Security SnapshotUse this worksheet to assess your individual situation

MAI035


Questions to ask before taking benefits:

Awareness

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Will I have to pay taxes on my income?

Do I need this extra income?

How long will I live?

When do I plan to stop working?


Main Idea

To make the most of your Social Security benefits, consider all the factors.

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Social Security

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Timing

Work

Taxes

Awareness



Next Steps

Next Steps

Download your social security statement by logging on to ssa.gov/myaccount

Estimate what your monthly income needs will be in retirement using the client worksheet.

Meet with your financial professional & tax professionalto evaluate youroverall portfolio and create an income plan.

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© 2020 by Hartford Funds© 2020 by Hartford Funds

Disclosures

This material is general marketing material, and provides only general plan and retirement information. This material is not intended to provide tax, accounting or legal advice. As with all matters of a tax or legal nature, investors should consult a tax or legal counsel for advice. Hartford Funds is not providing any investment advice of any kind (impartial or otherwise) in this material and is not acting as a fiduciary in connection with the preparation or distribution of this material. Investors should consult their own financial professional for advice or recommendations with respect to the information addressed in this material.

Hartford Funds Distributors, LLC, Member FINRA.

SEM_SS_0920 219581

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Documents

Social Security: Unlock Its Potential - Hartford Funds...Social Security Trivia Mr. Ernest Ackerman First recipient of Social Security retirement benefits Received $0.17 Miss Ida May