Berks Barrister Fall 2018 - 11

Sounds Easy?

Just when you think you've got a good grasp on what you need
to do, your law partner says, "What if they change the rules?"
Public policy is a wildcard that cannot be discounted. Because
SS rules are this way today, does not mean they will remain in
place forever. In fact, the younger you are, the more they are apt to
change. A significant number of people collect benefits at age 62
simply because they know what they will get and are afraid things
might change in the future. It's always difficult to plan for what
"may" happen, yet this warrants consideration.

What if I'm Currently Married?

While the options are countless, you need to consider and
plan for your spouse. A surviving spouse can collect the higher of
their Social Security, or their deceased spouse's. This holds true,
even if the spouses collect at different ages. When looking at
deferring Social Security, a planning technique that may work is

to have one collect early, and the other defer. Then, if the surviving
spouse lives much longer than the deceased spouse, you will be
able to enjoy the higher (deferred) benefit.
The take-away here is the importance of reviewing your
specific situation, and how the different options can affect your
personal planning.

What if I was Previously Married?

While there are specific conditions, there are benefits for
widows and divorcees. You may be able to collect on your spouse
or ex-spouse's benefit as early as age 60. The most common
planning technique is to begin collecting the other's benefit, thus
deferring yours to age 70. Yes, the benefit seems illogical, but
that is the way SS was designed. You would still be subject to the
income limitations listed above.

Other SS Benefits

Although this article speaks to retirement, there are additional
benefits for disability and even for your family members under
certain circumstances.

RETIREMENT INCOME PL ANNING

Retirement income planning is a complicated subject. There
is an old phrase for retirement being a 3-legged stool. The first
leg is your pension plan (which few people have today) and is
being replaced by defined benefit plans (i.e. 401(k) Plan). SS is
the second leg and personal savings the third. For the purposes
of this article, we will focus on Qualified Retirement Plan/IRA

Continued on next page

Haggerty, Goldberg, Schleifer & Kupersmith

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Fall 2018 | 11

Retirement

Also, worth noting is the rule for those working between the
ages of 62 and FRA. There is a $17,040 (for 2018) income limit.
The more your income exceeds this limit, the more of your SS
you will have to return. Once you hit FRA, there is no income
limit. This is probably the most common reason people defer SS
benefits.
If you look at SS as providing a base income, you may want
to consider deferring collection. Remember, the longer you live,
the more sense it makes to defer. Think again about gearing your
planning from a longevity standpoint.

Planning

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Berks Barrister Fall 2018

Table of Contents for the Digital Edition of Berks Barrister Fall 2018
