Tips for Simplifying Interactions with the Social Security Administration

 Social Security represents a significant component of many retirees' retirement income plans. As of September 2016, nearly 44 million retirees received Social Security benefits, with an average monthly benefit amount of more than $1,300.

Part of the role of an advisor or retirement income expert is helping clients maximize the Social Security component of their retirement income plan. Learning how to communicate with the Social Security Administration (SSA) effectively is necessary to save time and avoid missteps along the way.

The challenge faced by many financial advisors and their clients is that the SSA has lost more than 11,000 employees through attrition and retirements since 2011. The majority of these employees haven't been replaced, but despite staff decreases, the SSA has been making a serious push for an unprecedented number of boomers to file for their retirement benefits. Disproportionate demand and supply have created an additional level of complexity in a process already unfamiliar to many financial advisors. The following tips should help you simplify and optimize both your and your clients’ interactions with the SSA:

1) Create an online account

In an interview with The American College of Financial Services, Mary Beth Franklin, Contributing Editor for InvestmentNews, recommended that workers create an online SSA account— called My Account — even before retirement age, "so that you have a good idea as to claiming strategies and benefit estimates ahead of time." Advisors should counsel their clients to set up an account and periodically check the information for accuracy.

“It’s giving you your entire earnings history, what you earned year by year, and what you paid in FICA taxes in those years,” explained Franklin. The account’s “benefits estimate” feature helps when checking to see if a former employer filed correctly and to prepare financial plans. Advisors can help clients streamline the Social Security process by identifying and addressing any inaccurate or missing information before it’s time for them to file their claim.

2) Perfect the spousal benefits process

Advisors and clients often struggle with understanding the rules of spousal benefits including the divorced spousal benefit. If your client was married at least 10 years and is currently unmarried, then they are entitled to benefits as if they were still married. You can simplify communication with the SSA by first understanding this claiming process before you get started as well as being prepared to provide the required information.

To prove identity, a client must produce a marriage license and divorce decree, showing a span of 10 years or more between the two.

Clients may undergo a second round of verification and be asked to provide other personal information such as an ex’s Social Security number. Be aware that if the client had an acrimonious divorce, they might be reluctant, unwilling, or unable to get this kind of information. In most cases, Franklin noted, the SSA should be able to obtain the information they need, so advisors can help calm any fear their clients may have about unsavory or uncomfortable interactions with a former spouse.  Providing the SSA with complete information at the onset of a claim can expedite the process, so advisors should suggest clients compile relevant facts in advance of filing whenever possible.

3) Visit the office

For more complicated tasks, such as the now defunct file-and-suspend strategy, or to file a restricted claim for spousal benefits, making an appointment for a face-to-face is best, Franklin suggested. Clients may ask you to accompany them if they’re overwhelmed, but if an in-person visit is needed, one of the best ways you can help clients is proactively and persistently encouraging them to plan the trip they may otherwise avoid.

4) Access the SSA’s online resources

Filing restricted claims and other complex tasks may be best accomplished in-person, but can still be difficult. Employees of the SSA have varying levels of expertise and experience, so the answers you get may not always be consistent. To avoid reduced benefits caused by wrong or inconsistent answers, Franklin said using the SSA's online resource for financial planners to search for information is a good strategy. Once found, print out the information and have your client bring it to their in-person appointment, or, send the link to an SSA worker to help confirm information and keep the filing process moving.  

5) Be polite, yet persistent and direct

Advisors can support clients and even hand-hold through interactions with the SSA, but clients will likely have to handle some steps or tasks themselves. When approaching the SSA or an individual at a local agency office, it’s important always to be polite, be persistent, and don’t give up. “This is an earned benefit,” Franklin said, “it is not welfare.” Help your clients go into the conversation with an idea of what they need or want or how things are supposed to work. If answers from SSA do not match what the client was expecting, advise them to use language like, “Could you show me in writing where it says I have this right?” or “I’m confused, could I speak to your supervisor?” Help your clients understand what they’re entitled to so they can ask the right questions and expect complete, productive answers.

Interacting with the Social Security Administration may pose challenges but ultimately improves a client’s quality of life once a claim is properly completed. If you’re interested in learning how to maximize your client’s Social Security benefits, download the guide Social Security’s Role in The Advice You Provide.