Testing two software tools that calculate benefits and help users' wargame claiming strategies
Our test case: A married couple
Husband, Bob, DOB 1-15-1954 (age 59), PIA = $2,000 (FRA of 66)*
Wife, Mary, DOB 1-30-1960 (Age 53), PIA= $500 (FRA of 67)
With annual cost of living adjustments of 2% or 2.5%*
[*PIA= primary insurance amount; FRA= full retirement age]
The two tools compared were Social Security Analyzer (from Social Security Solutions Inc., ssanalyzer.com) and Social Security Explorer (from Impact Technologies Group Inc., impact-tech.com)
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SOCIAL SECURITY ANALYZER
(from Social Security Solutions Inc., ssanalyzer.com)
Total Benefits = $1,601,594 (to 2049, with Mary in her last year at age 90)
Maximum monthly benefits = $5,958
These results contingent on Bob living to Age 85 and Mary to Age 90
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Cumulative benefits year by year
2024 $63,817
2029 $335,481
2034 $653,062
2039 $985,887
2044 $1,278,523
2049 $1,601,594
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STEP BY STEP
Bob files a restricted application for spousal benefits only in February 2022 at age 68 and 1mos.
Mary begins benefits on her earnings record in February 2022 at age 62 and 1mos.
Bob switches to benefits based on his earnings record in January 2024 at age 70.
Mary adds spousal benefits in January 2027 at age 67.
In January 2039 Mary begins survivor benefits.
[Analyzer then provides additional charts by default, one displayed in line-graph format showing how cumulative benefits compare when taking the primary suggested strategy, early benefits or waiting to full retirement age. In addition there is a three-page detailed year-by-year chart showing benefit amounts for both spouses (COLA-adjusted), total before earnings and taxes, any earnings reductions (an adjustable field), estimated taxes paid (again an adjustable field), then total annual after earnings and taxes, NPV of total benefits and NPV of cumulative benefits.
[Two strategies can be compared side by side in Analyzer (not in Explorer) and many details edited.
This just shows the basic default data and results.
Other features that would see heavy use from an adviser are the Social Security Zone which uses rich Internet Technology to allow an adviser sitting with a client show results moving between cells within a table. Each cell presents a different age combination and claiming strategy along with benefit amount, a highly interactive tool. Advisers can also print out and share fully customized reports with clients].
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SOCIAL SECURITY EXPLORER
(from Impact Technologies Group Inc., impact-tech.com)
Cumulative lifetime benefits $1,730,805
Ages for Maximum benefits
You [Bob] start benefits at age 70
Spouse starts benefits at age 67
A monthly benefits by year bar chart is displayed that assumes annual cost of living adjustments but this can be difficult to interpret if printed out.
The tool lacks the detailed reporting capabilities of the Analyzer product and is meant more for in-person demonstrations with clients.
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*We set Social Security Analyzer at 2% to as closely as possible match the 2.5% default of Social Security Explorer. We could not set .5% increments in Analyzer.
