Client Presentation with Medicare 2023

1. Social Security Planning
“Optimize Your Benefits”

2. Agenda
Why Social Security is Important
Social Security Basics
Mastering the Complexities
Getting to Know Medicare
Questions & Answers

3. Social Security Planning
“Why Social Security is Important”

4. Social Security Importance
Married
Divorced
Widows
Children
Disabled
Self-Employed
4 Important Social Security Facts
1. It is more than just a retirement program
2. It provides a guaranteed, progressive benefit
3. It provides a foundation of retirement
protection
4. Many rely on it for a majority of their
retirement income

5. How much would you need to invest in other retirement accounts such as (Annuities, CD’s, IRA’s, 401ks, Pensions, etc.) to
match the income you could receive from your Social Security income?
Cornerstone of Retirement Planning

6. Problems You Face
2,728 rules surround the Social
Security program & thousands
of claiming strategies
Many are uneducated which
is why 96% of claimants don’t
optimize
There are few reliable
resources for expert Social
Security help

7. Retirement Income Strategy
"Optimizing” your Social Security and Retirement Strategy is taking a holistic approach and understanding
your specific circumstances and how you can find a plan that matches your retirement goals
Fixed Expenses
Ø Mortgage
Ø Credit Cards
Ø Loans
Ø Insurance
Ø Food
Ø Utilities
Retirement Assets
Ø 401K
Ø Pension Plans
Ø IRA’s
Ø Roth IRA
Ø Annuities
Ø Stocks
Variable Expenses
Ø Travel
Ø Shopping
Ø Vacations
Ø Hobbies
Ø Entertainment
Ø Lifestyle

8. Social Security Planning
“Social Security Basics”

9. Full Retirement Age
Primary Insurance Amount
Average Indexed Monthly Earnings
Delayed Retirement Credits
Cost-of-Living Adjustment
Basic Social Security Terms

10. Full Retirement Age
Full Retirement Age:
1. Receive Primary Insurance Amount
2. Full unreduced benefit
3. No longer subject to the earnings limit
4. 6-month retro payment
5. Voluntary Suspension
Birth Year* Full Retirement Age
1943-54 66
1955 66, 2 months
1956 66, 4 months
1957 66, 6 months
1958 66, 8 months
1959 66, 10 months
1960 & higher 67

11. Social Security Calculations
Primary Insurance Amount Data
Full Retirement Age (FRA): 67 (04/2027)
Sum of highest 35 years of indexed earnings: $4,789,438
Average Indexed Monthly Earnings (AIME): $11,403
Bend Point Breakdown
Bend Point Portion Multiplier Amount
$0 - $1,024 $1,024 X 90% = $922
$1,025 - $6,172 $5,148 X 32% = $1,647
>$6,173 $5,231 X 15% = $785
Primary Insurance Amount (PIA): $3,354
Ø Earnings before age 59 are indexed for inflation
Ø Earnings from age 60 and after, are used at face value
Ø Highest 35 Year Indexed Sum
Ø Average Indexed Monthly Earnings

12. Social Security Reductions & Credits
Monthly Benefits Richard
2024 2025 2026 2027 2028 2029 2029 2030 2031 2032
62 63 64 65 66 FRA 67 68 69 70
$2,611 $2,781 $2,966 $3,213 $3,461 $3,708 $3,708 $4,004 $4,301 $4,598
Percentage of Primary Insurance Amount
2024 2025 2026 2027 2028 2029 2029 2030 2031 2032
62 63 64 65 66 FRA 67 68 69 70
70% 75% 80% 87% 93% 100% 100% 108% 116% 124%
*Images are examples used exclusively from RSSA Roadmap Software

13. Spousal Benefit Reductions
Monthly Benefits
Percentage of Primary Insurance Amount
2024 2025 2026 2027 2028 2029 2029 2030 2031 2032
62 63 64 65 66 FRA 67 68 69 70
$1,205 $1,334 $1,464 $1,594 $1,724 $1,854 $1,854 $1,854 $1,854 $1,854
2024 2025 2026 2027 2028 2029 2029 2030 2031 2032
62 63 64 65 66 FRA 67 68 69 70
32.5% 35% 37.5% 41.66% 45.83% 50% 50% 50% 50% 50%

14. Cost-of-Living Adjustment
Collecting Benefits:
Ø For those who are already collecting a
benefit when the COLA increase
begins each January, that benefit will
be adjusted to reflect that COLA
increase
Not collecting Benefits:
Ø For those aged 62 and older will
receive the COLA increase even if they
have not begun collecting benefits.
Clients who are not collecting, the
COLA increase adjusts their PIA
2.8
1.6 1.3
5.9
8.7
0
1
2
3
4
5
6
7
8
9
10
2019 2020 2021 2022 2023
Cost Of Living Increase Last 5 Years
Cost Of Living Increase

15. Social Security Planning
“Understand the Complexities”

16. Earnings Test
Collecting While Working
Ø $1 for every $2 earned above $21,240* - In all
years before reaching full retirement age year
Ø $1 for every $3 you earn above $56,520* - In the
year full retirement age will be reached
Ø No earnings limits at or after reaching full
retirement age
The “Earnings Test” limits how much can be earned while collecting Social Security benefits
Income That Does Not
Count
Income That Does
Count
Ø Pension Payments
Ø Annuity Payments
Ø IRA Distributions
Ø Dividends
Ø Interest Income
Ø Capital Gains
Ø Rental Income
Ø Employment
Income (W-2
Wages)
Ø Net Income from
Self-Employment
*2023 figures

17. “Non-Covered” Pension
A pension from work in which Social Security taxes were not withheld
• A Non-Covered Pension
• Retirement or Disability Benefit
• Over 2 million impacted in 2022
Windfall Elimination
Provision (WEP)
• A Non-Covered Pension
• Spousal or Survivor Benefit
• Over 724,000 impacted in 2022
Government Pension
Offset (GPO)

18. Dependent Benefits
Dependent Benefit Key Takeaways:
1. 50% of PIA while parent is alive
2. 75% of PIA if parent is deceased
3. Limited by family maximum benefit
3. Child In-Care Spousal Benefit (If Caring for One Above)
*Spouse must be collecting
benefits
Eligible to receive 50% of the
collecting spouse's PIA
2. Disabled Child (If Disabled Before Reaching Age 22)
*Parent must be collecting
benefits
Eligible to receive 50% of the
collecting parent's PIA
1. Minor Child Under Age 18 or 19 (If Still in High School)
*Parent must be collecting
benefits
Eligible to receive 50% of the
collecting parent's PIA
Family Maximum Benefit
Ø Limits the total benefits that can
be paid out on one worker's
earnings record

19. Survivor Benefits
Survivor Benefit Key Takeaways:
1. Survivor benefit has a “base amount”
2. Benefits determined by age of claim
3. Survivor FRA is 4 months less than normal FRA
Eligibility factors
Ø Married at least 9 months
Ø Collecting age starts at 60
Ø Collect at age 50+ if disabled
Ø Any age if caring for a child under age 16
Ø Any age if caring for a disabled adult child
Survivor Benefit
Claimant Age
Survivor Benefit
Reduction %
60 71.50
61 75.58
62 79.65
63 83.72
64 87.79
65 91.86
66 95.93
67 (FRA) 100
68 100
69 100
70 100

20. Future Earnings Impacts
Disability Benefits
Life Expectancy & Break-Even
Voluntary Suspension
Deemed Filing
Taxation on Social Security
Many Social Security Factors to Consider

21. Social Security Planning
“Get to Know Medicare”

22. What is Medicare & Who is Eligible?
You must meet the following requirements:
• U.S. citizen
• Legal resident: must live in the U.S. for at least 5 years in a row, including
the 5 years just before applying for Medicare
And one of the following…
• Age 65 or older
• Younger than 65 with a qualifying disability
• Any age with a diagnosis of end-stage renal disease or ALS
What is Medicare?
A federal health insurance program for eligible U.S. citizens and legal residents
Funded in part by taxes you pay while working
Individual health insurance

23. Working Past 65 & Medicare?
Medicare enrollment options when working past 65 may be different
You may be able to delay, or you may have to enroll at age 65
What if I’m covered by my spouse’s employer?
You may be able to delay if your employer-based health coverage is through your spouse. You may have to
enroll. It depends on the spouse’s employer and any rules the employer has around covered dependents.
Generally, you can delay Medicare
past age 65 without penalty if:
• The employer has 20 or more employees
• The employer health coverage is
considered “creditable”
You need to enroll at age 65 if:
• Your employer has fewer than 20 employees
• Your coverage is not considered “creditable”

24. Original Medicare Part A
Medicare Part A covers hospital stays and inpatient care, including:
Your hospital room and meals
Care in special units, such as
intensive care
Prescription drugs and medical
supplies used during an inpatient stay
Lab tests, X-rays and medical
equipment as an inpatient
Operating room and recovery
room services
Skilled nursing services
Some blood transfusions
Hospice care, including medications
to manage symptoms and pain
Part-time, skilled care for the homebound
after a qualified inpatient stay
Rehabilitation services after a qualified
inpatient stay

25. Original Medicare Part B
Medicare Part B covers doctor visits and outpatient care, including:
Doctor visits, including when you are
in the hospital
An annual Wellness Visit and
preventive services, like flu shots
Clinical laboratory services, like
blood and urine tests
X-rays, MRIs, CT scans, EKGs and
some other diagnostic tests
Some health programs, like smoking
cessation and obesity counseling
Physical therapy, occupational therapy
and speech-language pathology services
Diabetes screenings, education and
certain supplies
Mental health care
Durable medical equipment for use at
home, like wheelchairs and walkers
Ambulatory surgery center services,
ambulance and emergency room services

26. Medicare Doesn’t Cover Everything
Original Medicare (Parts A & B) does not cover:
All the cost of your care — you have out-
of-pocket costs, with no limit
Prescription drugs
Routine dental, vision or hearing care
Eyeglasses, contacts or hearing aids
Long-term or custodial care
(help bathing, eating, dressing)
Excess charges for services by doctors
who don’t accept Medicare assignment
Care received outside the U.S.,
except for certain circumstances

27. Additional Coverage Options
Option 1
Add one or both of the
following to Original Medicare:
Option 2
Choose a
Medicare Advantage plan:
OR
Medicare Part D Plan
Offered by private insurance companies
Helps pay for prescription drugs
Medicare Advantage (Part C) Plan
Offered by private insurance companies
Part C
Combines Part A (hospital insurance) and
Part B (medical insurance) in one plan
Part D
Usually includes prescription drug coverage
May offer additional benefits like vision
and dental coverage
Medicare Supplement Insurance (Medigap)
Offered by private insurance companies
Helps pay some or all of the out-of-pocket
costs not paid by Original Medicare

28. Medicare Costs
Medicare costs
Premium
A fixed amount that you pay for coverage,
usually is a monthly fee
Deductible
A set amount that you pay for covered
services before your plan begins to pay
Copay
A fixed amount you pay at the time you receive a covered service
Coinsurance
An amount you pay when the plan splits the cost of a covered service with you
by percentage, such as 80/20

29. Medicare Costs
Part C, Part D and Medigap costs
Costs you could pay may include:
Medicare Advantage (Part C) Part D prescription drug plans
Medicare supplement
insurance (Medigap) plans
• Low to $0 monthly premium
• Deductible
• Copay
• Coinsurance
• Monthly premium
• Deductible
• Copay
• Coinsurance
• Monthly premium
• Deductible
• Copays
Plans will vary in the costs they choose to include and how much
Medicare Advantage plans have an annual out-of-pocket maximum
for covered services.

30. Social Security Planning
“Questions”