Social security is one of the most essential aspects of retirement income for Physicians employees and retirees to understand. Social Security is typically thought of as an additional retirement income stream. It should never be the only source of income, but it can help in times of critical need. A family facing challenges such as the death of a spouse, disability, divorce, or dependent children/parents, should be aware of the benefits to which they dispose of to alleviate the financial pressure they may be under. So how exactly do family benefits work? Generally speaking, you will receive either a percentage of the Social Security benefit, the entire amount of the Social Security benefit, or a family maximum. To help illustrate the difference let’s run through some common questions that we receive from Physicians employees and retirees.

Answer: This is a question we often receive from Physicians employees and retirees, and understandably so. Yes, spousal benefits are available to a couple who has been married for one year or longer. The maximum they can collect is 50 percent of working spouses' Primary Insurance Amount, otherwise known as Full Retirement Age if they wait until their own Full Retirement Age, or they may collect a further reduced amount starting at age 62. 1

Answer:  Yes. If you were married to your ex-spouse for 10 years or longer, they are currently not married and is age 62 or older. The same benefits apply to you as they do to a current spouse. 1

Answer:  From working with a large amount of Physicians employees and retirees, there is a lot of concern about how death can affect the financial well-being of the family. As a result, this question comes up quite a bit. There are two parts to consider in the answer. Yes. Your unmarried dependent children under the age of 18, or 19 if attending a primary or secondary school, or disabled as long as disability occurred before the age of 22, are entitled to receive 75 percent of their deceased parent’s PIA up to a family maximum amount. If you are caring for a child under the age of 16 the spouse is entitled to also receive 75 percent of the PIA up to a family maximum. In this situation Social Security has become available immediately to the family to provide additional income. Secondly, a widower can access their deceased spouse’s Social Security benefit at age 60. This is two years earlier than the traditional spousal benefit. As with any situation of taking Social Security early, it will be subject to a percentage reduction of the full benefit. 1

Answer:  This is another concern for many Physicians employees and retirees who have children. Yes, the same eligibility rules apply as if you were deceased. The only change is that your children would only be able to collect 50 percent of your PIA. 1

Answer:  Yes. Your dependent parents may collect off your record presuming that you are deceased and that you were providing for more than 50 percent of their support prior to passing away. This is the least common family benefit that is available. 1 It is important to remember that a family member collecting a Social Security benefit off of your record will not reduce the benefit you are entitled to receive. Applying for the benefits you and your family are entitled to receive can add up to significant income for your family and help to relieve the pressure a life-changing event may have on your resources. We've spoken with many Physicians employees and retirees over the years, and we know that everyone’s situation is unique. There are complicated intricacies of Social Security benefits but luckily with the help of our professional financial advisors, we can help you determine when and how to apply for your benefits.

The Retirement Group is a nation-wide group of financial advisors who work together as a team.

We focus entirely on retirement planning and the design of retirement portfolios for transitioning corporate employees. Each representative of the group has been hand selected by The Retirement Group in select cities of the United States. Each advisor was selected based on their pension expertise, experience in financial planning, and portfolio construction knowledge.

TRG takes a teamwork approach in providing the best possible solutions for our clients’ concerns. The Team has a conservative investment philosophy and diversifies client portfolios with laddered bonds, CDs, mutual funds, ETFs, Annuities, Stocks and other investments to help achieve their goals. The team addresses Retirement, Pension, Tax, Asset Allocation, Estate, and Elder Care issues. This document utilizes various research tools and techniques. A variety of assumptions and judgmental elements are inevitably inherent in any attempt to estimate future results and, consequently, such results should be viewed as tentative estimations. Changes in the law, investment climate, interest rates, and personal circumstances will have profound effects on both the accuracy of our estimations and the suitability of our recommendations. The need for ongoing sensitivity to change and for constant re-examination and alteration of the plan is thus apparent.

Therefore, we encourage you to have your plan updated a few months before your potential retirement date as well as an annual review. It should be emphasized that neither The Retirement Group, LLC nor any of its employees can engage in the practice of law or accounting and that nothing in this document should be taken as an effort to do so. We look forward to working with tax and/or legal professionals you may select to discuss the relevant ramifications of our recommendations.

Throughout your retirement years we will continue to update you on issues affecting your retirement through our complimentary and proprietary newsletters, workshops and regular updates. You may always reach us at (800) 900-5867.

1. What to do with an Early Retirement Ebook

2. Social Security Ebook

3. Lump Sum vs. Annuity Ebook

4. 401(k) Rollover Strategies Ebook

5. Closing the Retirement Gap Ebook