Almost one-half of respondents in a recent AARP study with seniors said that they are delaying retirement by five years or more because of financial issues.
Conversely, many pre-retirement seniors greatly underestimate or, worse, ignore the importance of their Social Security income in their overall financial plan. That from our expert on Social Security, Mike Granbois, who counsels seniors to view Social Security income as an asset to be planned just like an investment account. And, he makes a great point: Social Security income for most families will exceed $1 million over their remaining lifetime.
And, speaking of lifetimes, did you know:
- 50% of 65 year olds will live another 20-23 years.
- For married couples in that same age range, there’s a 25% likelihood one of them will live to age 97.
We believe Social Security is a great door opener for agents to generate new discussions with clients and prospects.
Earlier this week Redbird met with a group of agents in the Midwest who plan to conduct Social Security seminars next year. These seminars have helped Mike generate hundreds of new clients, many of whom purchase annuities as part of their overall financial plan.
The great content that we’ve developed for agents to lead seminars can just as easily be used in a small group or one-on-one session. The agent’s responsibility is to become an expert. While complex, it is by no means impossible and there are many good resources (see below for a website we like).
Here are some interesting “did you know” facts about Social Security that your clients likely do not know:
- Age 66 is the magic age for Social Security, called the full retirement age. For example, not only do you receive your full benefits, but you are eligible for more flexible rules on continuing to work versus if you choose to start taking benefits before age 66.
- Many seniors elect to start receiving Social Security benefits at age 62, totally unaware that their benefits will be permanently reduced by 25% if they had waited to receive them at age 66. Permanently!
- If you wait until age 70 to take benefits, you will be given what are called “delayed credits” which increase your benefits by 8% annually. So, by electing to wait and take benefits at age 70 your total benefits will be 132% of your full retirement amount.
- Today, for every 2.8 people paying into the Social Security system, one is taking benefits. By the year 2040, for every person taking benefits there will be only 2.1 people paying into the system. Now you know the problem!
- By 2033 the Social Security Trust Fund will be able to pay only 75% of its scheduled benefits. Good news: most seniors preparing to retire today will not be faced with dramatic changes to the system.
The moral to our story is to urge you to capitalize on a hot subject and start meeting with pre-retirement age clients, whether in a group or individually, and help them make good decisions to fit their situations.
Take a look at this website from the National Social Security Association: www.nationalsocialsecurityassociation.com. Several agents have taken its crash course on Social Security. Give Drew a call today and let’s get you into the flow of this great opportunity to generate leads.
Call 866-547-8780 and talk to Drew Gurley, ext. 102.
Product of the Week: Allianz 365i fixed index annuity
Working with Allianz has a lot of advantages. Not only does it provide some of the greatest insurance and financial services training, it also has a strong line of financially-secure products. The 365i fixed indexed annuity offers many benefits for the client including:
- Indexed interest growth opportunity
- A 5% premium bonus on every premium payment in the first three contract years
- Full accumulation value available after a 10-year surrender charge period
- A potential death benefit enhancement for beneficiaries equal to 25% of all interest credits
- Income Maximizer Rider
- LTC liquidity
- Increasing income
Allianz 365i is a preferred product which means agents have to qualify by meeting minimum standards to offer the preferred product line. Redbird Advisors is an Allianz Preferred member and can help you become qualified for the Allianz Preferred product line. Please contact us today if you are interested in becoming an Allianz Preferred broker. Email Drew Gurley, drew@redbirdadvisors.com or call 866-547-8780, ext 102.
Redbird Chirps
- Be productive and inspire over the holidays. Whether it’s by giving back in a new way or finally getting to the end of your to-do list, the holiday season is a great time to be both creative and productive. StartupCollective brings you a few ideas for putting your inspiration to good use.
- Management: 5 Cs to build a great team. If you’re contemplating building a team of agents, check out Jon Gordon’s advice on how great teams are built and sustained. It’s not magic, but it’s easier said than done.
- Fact Finder: End of year means planning. Get prepared to help your clients get prepared. Our Fact Finder provides an excellent platform to better understand client needs, plans and concerns. Click here to download the Redbird Fact Finder.
