BRIDGING THE INCOME GAP Did you know that some sources of retirement income such as Social Security, a government or state pension, or even a corporate pension, may offer increased benefits for each month or year that you delay accessing income? Waiting for that income, though, could lead to a potential income gap, depending on the lifestyle you plan to enjoy. With the flexibility of Nassau Income Accelerator, and one of three rider options, you can have an “income bridge” to potentially optimize retirement income and supplement Social Security and other retirement benefits as part of a comprehensive retirement income strategy. OPTIMIZING TOTAL RETIREMENT INCOME Social Security benefits vary by the age you begin claiming benefits. At 67 (full retirement age), 100% of your Social Security benefit is payable. Annual Social Security benefits can increase by up to 24% if you wait until age 70 to claim benefits but reduce by up to 30% if you begin benefits as early as age 62.* See chart below.
Effect of Early or Delayed Retirement on Social Security Retirement Benefits*
0
25
50
75
100
125
124%
70 69 68 67 66 65 64 63 62
116%
108%
100%
93.33%
86.67%
80%
75%
70%
Bene t as Percentage of Primary Insurance Amount
*For those born in 1960 or later. The “primary insurance amount” is the benefit (before rounding down to next lower whole dollar) a person would receive if he/she elects to begin receiving Social Security retirement benefits at his/her normal retirement age. Source: Social Security Administration, Social Security Benefits: Effect of Early or Delayed Retirement on Retirement Benefits. WHY YOU MIGHT NEED A HIGHER INCOME LATER IN RETIREMENT
EXPENSES MAY OUTPACE COST OF LIVING ADJUSTMENTS 1 36% Loss of Buying Power Since 2000 $816 – average monthly Social Security benefit in 2000 $1,453.20 – average monthly Social Security benefit in 2023 A retiree would need $1,969.80 in average monthly Social Security benefits in 2023 to maintain the same level of buying power as in 2000.
LONGEVITY RISK – Outliving income is a concern for many retirees. As you develop your income plan, you may want to factor in a longer time horizon for the possibility of increased life expectancy. LIFESTYLE RISK – You may be surprised how quickly expenses can add up for those experiences you want to enjoy in retirement. So it’s important that your retirement plan include realistic estimates of your future expenses.
Product features, rider options and availability may vary by state. Please review all pages of this Product Overview with your insurance producer or financial professional for details on product features. The Product Summary that accompanies this overview includes further information on state variations, restrictions and other conditions that may apply.
1. The Senior Citizens League, “2023 Social Security Loss of Buying Power Study,” May 2023 02 PAGE
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