This family have been clients for many years and fortunately for the widow we had already run her Social Security projections. This dedicated software program is designed to help decide which option to choose and is especially helpful in unusual situations.
We had made the suggestion for her filing option. She contacted the Social Security Administration (SSA) to start the process at what we thought was the ideal time. The representative was only available between the hours of 9 am and 3 pm Eastern on Tuesdays via telephone.
The SSA representative was adamant that the filing strategy we suggested was NOT possible. I reached out to our technical experts who said--"They are wrong. Have your client ask for the supervisor." The following Tuesday the client calls the SSA rep and asks for the supervisor to which the SSA rep says--"They will say the same thing I am saying."
All the while a letter was received by the client from the SSA suggesting that they needed confirmation of her election and that her decision might not result in the best benefit for her. The following Tuesday she spoke with the SSA rep again who said--"Oh yes you can make that election that way."
We had estimated the difference in the filing choices could mean as much as $125,000 more income to the client over her lifetime. Now I am not suggesting the SSA rep was intending to mislead the widow but the results would have been the same either way.
The SSA laws have changed again recently and it is understandable how anyone could be confused. However, most of these decisions are irrevocable and significant in the financial plans of most people. If you or anyone you know is at the age where filing for Social Security is soon to come it would make sense for them to get an independent opinion to support the final election decision.
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