Instead of simply telling the client to go to the Social Security office to file for benefits, an advisor should provide the client with advice about a particular claiming strategy and then arm the client with the written regulations that pertain to his specific benefits, Meyer says. Meyer's firm provides support for advisors with these issues.
One of the largest areas of confusion at the Social Security offices is the filing of restricted applications. A restricted application means the person is not applying for the highest benefits he may be eligible for at the time. For instance, a person could apply for survivor benefits based on a late spouse’s earnings record while he lets his own benefits grow each year until age 70. He would then switch to his own higher benefits at age 70.
This is a claiming strategy that was affected by a budget action at the end of 2015, but is still available to retirees born before January 2, 1954. Meyer states that advisors should be prepared for the fact that most agents at Social Security will tell all clients the strategy is no longer available when it is, in fact, available to older clients.
“For this situation and many others, it’s common for clients to go back to the advisor after being told their strategy isn’t possible,” Meyer says. “Be prepared with the exact regulations to back up your advice and your client.”