The month of April is designated as both Financial Literacy Month and Social Security Month. We’ve combined the two topics and spotlight key points to consider when helping clients plan for retirement.
Financial literacy is having the skills, knowledge, and experience to make financial decisions that can aid in meeting financial goals. The Financial Literacy and Education Commission notes that there are five key components of financial literacy: earn, spend, save/invest, borrow, and protect. We’ve focused on the save/invest component to help you have meaningful conversations about this topic with clients as it applies to financial planning and Social Security claiming strategies for retirement benefits.
First, let’s understand some basics about Social Security benefits.
With all the moving parts, the sooner your clients consider their options, the better financially prepared they’ll be for retirement. Here are a few questions to ask:
Financial literacy can be defined and used in a variety of ways: from budgeting to spending, understanding each component is important. It is key to evaluate the client’s essential and discretionary expenses and guide him or her to plan early. Talk to your clients now to help them be literate about their Social Security benefit options so they can optimize their retirement income. Client education results in advanced planning, building trust, and happy clients who want friends and family to know about the value their financial professionals provide.
For more information about retirement-planning, please contact our Retirement Strategies Group at RSG@PacificLife.com or (800) 722-2333, ext. 3939. PacificLife.com
1Social Security Administration. “Snapshot of the Month: June 2021 Beneficiary Data.” Social Security Basic Facts.
All guarantees are subject to the claims-paying ability and financial strength of the issuing insurance company and do not protect the value of the variable investment options, which are subject to market risk.
This material is provided for informational purposes only and should not be construed as investment, tax, or legal advice. Information is based on current laws, which are subject to change at any time. Clients should consult with their accounting or tax professionals for guidance regarding their specific financial situations.
Pacific Life refers to Pacific Life Insurance Company and its affiliates, including Pacific Life & Annuity Company. Insurance products are issued by Pacific Life Insurance Company in all states except New York and in New York by Pacific Life & Annuity Company. Product availability and features may vary by state. Each insurance company is solely responsible for the financial obligations accruing under the products it issues.
Pacific Life, its distributors, and respective representatives do not provide tax, accounting, or legal advice. Any taxpayer should seek advice based on the taxpayer's particular circumstances from an independent tax advisor or attorney.
Pacific Life is a product provider. It is not a fiduciary and therefore does not give advice or make recommendations regarding insurance or investment products.
Pacific Life refers to Pacific Life Insurance Company and its affiliates, including Pacific Life & Annuity Company. Insurance products are issued by Pacific Life Insurance Company in all states except New York and in New York by Pacific Life & Annuity Company. Product availability and features may vary by state. Each insurance company is solely responsible for the financial obligations accruing under the products it issues.
Variable insurance products are distributed by Pacific Select Distributors, LLC (member FINRA & SIPC), a subsidiary of Pacific Life Insurance Company (Newport Beach, CA) and an affiliate of Pacific Life & Annuity Company. Variable and fixed annuity products are available through licensed third parties.
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