Overall, financial advisors have done an excellent job helping clients maximize their Social Security benefits by waiting until 70 to claim. While not every client can — or is willing to — wait that long, it is an effective strategy.
As clients near age 70 and are ready to claim benefits, you may find these practical bits of advice helpful for you to connect the often forgotten dots.
Tip 1: Set expectations for how and when to apply for benefits.
The most common questions are around how and when to claim. Best option is to apply online at SSA.gov. Most find the application easy to fill out. It takes 5 to 10 minutes if clients already have their my Social Security account set up.
They should apply one to two months before their 70th birthday month. Importantly, they should make a note in the "Remarks" box on the application that they want benefits to start at age 70 to receive their maximum.
Connect these dots for your clients:
- By starting their benefit, any applicable spousal benefits or spousal top-up should also start. Advise the client to check on this additional payment and call the local SSA office if payments didn't begin.
- The client may get a call from the local SSA office asking if they want a 6-month retroactive lump-sum payment. It is tempting, but not advisable.
- The SSA may request a client to come into the office after an application has been received. It may simply be for an identification check. They should attend the appointment and bring any required documents.
Remind clients there is a tremendous amount of scamming going on toward seniors. Social Security communicates via regular USPS mail or puts information behind the login. Clients should read everything that comes in the mail and save all communications.
Tip 2: Share critical information for clients who are still working.
For clients who continued to work and remained in their large employer group health plan, make the Social Security to Medicare Part A connection clear.
