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Concurrent Session Onsite and Online

PFP2305. Social Security Compared to Annuities - Income Streams

Social Security provides a unique form of inflation-adjusted income that protects against purchasing power and longevity risk. A retiree can buy more Social Security income by choosing to delay claiming until age 70. This requires spending down financial assets to bridge the delay period. This presentation discusses the value of delayed claiming by introducing the rules used to estimate lifetime income increases, evaluating bridging strategies, and comparing delayed claiming to the cost of private annuities. Some retirees will benefit more than others, and advisors should recognize when it is optimal to delay claiming and the unequal impact claiming at different ages has on retirement wealth.

Learning Objectives:

  • Understand how insurers price annuities to estimate the value of delayed Social Security claiming
  • Compare common deferred and immediate annuity pricing to the increased income from delayed Social Security
  • Evaluate tax efficient strategies for building a spending bridge to delay claiming after retirement
CPE Credits
NASBA Field of Study
3-4 years in the Profession
Advanced Preparation
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