GDA Action September 2019

September 2019 • 39 Now offering Medicare Supplements Are you or someone you love thinking about Medicare? Stop here and let us answer your questions to 50% of the higher-earning spouse’s full benefit. Spousal benefits can be reduced if the lower-earning spouse elects to take them before reaching FRA. Survivor benefits A spouse can receive reduced survivor benefits at age 60 (or age 50 if disabled). When that spouse reaches FRA, he or she can step up to the greater of full survivor benefits or his or her full benefits. Note that survivor benefits increase if the higher-earning spouse delays taking benefits. Important limitations and rule changes Restricted application Restricted applications (collecting spousal benefits while letting your own retirement benefits grow) are only available to people born before January 2, 1954. Earning income If you work, but start receiving benefits before FRA, one dollar is deducted for each two dollars in earnings you make above the annual limit. In 2019, the limit is $17,640. In the year you reach your FRA, one dollar is deducted for every three dollars you earn over a different annual limit of $46,920 until the month you reach FRA. 1 Taxable benefits You may have to pay taxes on your benefits if you file a federal tax return as an individual and your total income is more than $25,000. If you file a joint return, you may have to pay taxes if you and your spouse have a total income that is more than $32,000. 1 File and suspend Starting May 1, 2016, the file and suspend feature was phased out for people born after April 30, 1950. Printed with permission. This material is provided for informational and educational purposes only. The information is current as of March 26, 2019 and is subject to change without notice. There are multiple factors that can impact a decision on when to claim Social Security, which should be carefully considered. You must make your own determination whether any particular Social Security filing strategy is appropriate; consult with your legal or tax advisor regarding your particular circumstances. Visit ssa.gov for additional information on Social Security benefits eligibility and rules. As a firm providing wealth management services to clients, UBS Financial Services Inc. offers both investment advisory and brokerage services, which are separate and distinct, differ in material ways and are governed by different laws and separate arrangements. It is important that clients understand the ways in which we conduct business and that they carefully read the agreements and disclosures that we provide to them about the products or services we offer. For more information visit our website at ubs. com/workingwithus. In providing financial planning services, we may act as a broker-dealer or investment adviser, depending on whether we charge a fee for the service. The nature and scope of the services are detailed in the documents and reports provided to you as part of the service. © UBS 2019. All rights reserved. The key symbol and UBS are among the registered and unregistered trademarks of UBS. UBS Financial Services Inc. is a subsidiary of UBS AG. Member FINRA/SIPC. D-UBS- 997D944A 2019-118638 WHAT SHOULD YOUR NEXT STEPS BE? There are a number of sophisticated Social Security strategies you may want to explore. Consider taking the following steps: • Retrieve a copy of your Social Security benefit statement from ssa.gov. • Think about what other income sources you might have throughout retirement. • Have a discussion with your loved ones about Be prepared to talk with your financial advisor about incorporating Social Security into your financial plan. Figure 1: Full Retirement Age (FRA) YEAR BORN FRA 1937 or earlier 65 1938–1942 65 + 2 months for every year after 1937 until 1943 1943–1954 66 1955–1959 66 + 2 months for every year after 1954 until 1960 1960 and later 67