Speaker
Date
This material is not intended to replace the advice of a qualified attorney, tax advisor, investment professional, or insurance agent. Before making any financial commitment regarding the issues discussed here, consult with the appropriate professional advisor.

• 84% percent of couples age
60-66 expect Social Security advice from a financial planner.*
Social Security Retirement Benefits Replacement Rates
Based on Career Average Wages**
• 61% of couples age 60-66 would switch advisors if their current advisor couldn’t help them with Social Security.*
• Social Security is a major source of income for most households.**
*Social Security Timing and Market Tools: Social Security Planning: The Emerging Cornerstone of Your Financial Practice?” August 2013.
**Social Security Administration Actuarial Note Number 2014.9 and Pioneer Investments
Page 2 | 25312-05-1215

1.
How Benefits are Calculated
2.
Maximizing Income for Married Couples
3.
Maximizing After-Tax Income with Social Security
Page 3 | 25312-05-1215

Page 4 | 25312-05-1215

Year of Birth
1943-1954
1955
1956
1957
1958
1959
1960 and later
Full Retirement Age (FRA)
66
66 and 2 months
66 and 4 months
66 and 6 months
66 and 8 months
66 and 10 months
67
Source: Social Security Administration. “Social Security Retirement Benefits.” SSA Publication No. 05-10035. January 2015.
Page 5 | 25312-05-1215

Reduction in Benefits is Permanent, Credit also Permanent
FRA
*Assumes a client was born between 1943 and 1954.
Source: Social Security Administration. “Full Retirement Age: If You Were Born between 1943 and 1954.” www.ssa.gov.
Page 6 | 25312-05-1215

Benefits may be Reduced if Income Exceeds Certain Thresholds
Age
62 until year attaining FRA
Benefit Reduction
Lose $1 in Social Security benefits for every $2 earned above limit
Year of attaining FRA Lose $1 in Social Security benefits for every $3 earned above limit
After FRA No benefit reduction
2016 Earned
Income Limits
$15,720
($1,310/month first calendar year)
$41,800
($3,490/month first calendar year)
No limit on earnings
A client must still pay Medicare and Social Security taxes if they are working and receiving Social Security benefits.
Source: Social Security Administration. “How Work Affects Your Benefits.” SSA Publication No. 05-10069. January 2015.
Page 7 | 25312-05-1215

Assumes Monthly Benefit of $1,000 at Full Retirement Age of 66
Source: Social Security Administration. “When to Start Receiving Retirement Benefits.” SSA Publication No. 05-10147. August 2015.
Page 8 | 25312-05-1215

Where could You Live in Retirement?
Collect at 62 Collect at 66 Collect at 70
Mobile Home
Source: ashevillerent.com.
Page 9 | 25312-05-1215
Older Refurbished
Home
New Home

1.
How Benefits are Calculated
2.
Maximizing Income for Married Couples
3.
Maximizing After-Tax Income with Social Security
Page 10 | 25312-05-1215

Spousal
Benefit
Survivor
Benefit
Payment Period
While primary worker is still alive and applied for Social
Security
After primary worker passes away
Maximum Benefit
Spouse of primary worker must be FRA when first claiming
Partial Benefit
Spouse of primary worker must be at least 62 to receive a partial benefit
Maximum benefit is 50% of worker’s benefit at
FRA
Receives 32%-49.9% of worker’s full benefit at FRA
Spousal benefits don’t increase after FRA
Surviving spouse must be
FRA
Reduction in benefit is permanent
Surviving spouse is between
60 and FRA
Maximum is 100% of worker’s benefit at death
Receives 71%-99% of primary worker’s benefit
If both spouses worked, receive greater of personal Social Security benefit or
Spousal/Survivor benefit.
Source: Social Security Administration. “Retirement Planner: Benefits for You as a Spouse.” www.ssa.gov.
Page 11 | 25312-05-1215

Eligible for Spousal/Survivor Benefits if:
• Married for at least 10 years
• Divorced for at least 2 years
• Must be age 62 to receive a spousal benefit, age 60 (50 if disabled) to receive a survivor benefit
• Ex-spouse must be at least age 62 and worked 40 quarters to receive a spousal benefit.
• Did not remarry
– If remarried, client generally forfeits benefits from ex-spouse
– If ex-spouse remarries and client does not, they remain entitled to spousal and survivor benefits off of ex-spouse
Page 12 | 25312-05-1215

Hypothetical Case Study: Advanced Claiming Strategies with Spousal Benefits
James and Linda
• James is 62.
• He earned average wages over his lifetime.
• His wife Linda never worked.
• What will be the household benefits and the survivor benefit if retires at:
– 62
– 66
– 70
This case study is a hypothetical illustration only. Assumptions: He is medium earner. Monthly benefits at: 62- $1,125, 66- $1,500, 70- $1,981. She is the same age.
Source: Social Security Administration. "Annual Statistical Supplement 2015.” Table 5.A1.1.
Page 13 | 25312-05-1215

Taking Social Security at 62 can Reduce Household Income by 65%
Poverty Line
(Married
Couple)
This case study is a hypothetical illustration only. Assumptions: He is medium earner. Monthly benefits at: 62- $1,125, 66- $1,500, 70- $1,981. She is the same age and collects as soon as possible. When she is 62, receives 35% of his age 66 benefit. If she claims at age 66, she receives 50% of his age 66 benefit. Her spousal benefit is capped at 50% of his year 66 benefit. Poverty line for married couples in 2014 was $15,730. (Source: Federal Register)
Source: Social Security Administration. "Annual Statistical Supplement to the Social Security Bulletin, 2015.” Table 5.A1.1-Number and “Average Monthly Benefit for
Retired Workers by Age. www.ssa.gov.
Page 14 | 25312-05-1215

Taking Social Security at 62 can Reduce Household Income by 65%
Poverty Line
(Married
Couple)
Poverty
Line
(Single)
This case study is a hypothetical illustration only. Assumptions: He is medium earner. Monthly benefits at: 62- $1,125, 66- $1,500, 70- $1,981. She is the same age and collects as soon as possible. When she is 62, receives 35% of his age 66 benefit, If she claims at age 66, she receives 50% of his age 66 benefit. Her spousal benefit is capped at 50% of his year 66 benefit. We assume he passes away after both reached FRA. This allows her to receive a widow benefit of 82.5% of his benefit if he claimed at age 62, 100% of his benefit if he claimed at FRA or later. Poverty line for single person in 2014 was $11,670 (Federal Register).
Source: Social Security Administration. "Annual Statistical Supplement to the Social Security Bulletin, 2015.” Table 5.A1.1-Number and “Average Monthly Benefit for
Retired Workers by Age.” www.ssa.gov.
Page 15 | 25312-05-1215

Hypothetical Case Study: Advanced Claiming Strategies with Spousal Benefits
James and Linda
• James and Linda want to know if there are any additional options available to them.
• Their advisor introduces them to
File and Suspend:*
– Available at FRA
– Allows spouse to apply for spousal benefits
– Worker benefits still increase by 8% per year
This case study is a hypothetical illustration only.
*Spousal Strategies Update: Changes are on the horizon. Refer to slides 18 and 31.
Page 16 | 25312-05-1215

Available When Worker is Age 66 (But Not Before)
70 At 70
69
67
68
James
• Claims Social
Security
• Receives
132% of original FRA amount
66
66
James is FRA
• Files for Social
Security benefits
• Immediately suspends
Because James filed,
Linda can apply for spousal benefits
Spousal benefits do not increase
File and suspend can only be implemented if the working spouse has attained Full Retirement Age. If application for Social Security is before FRA, the client must take Social Security. If the spouse claiming the spousal benefit is under FRA, their spousal benefit and personal Social Security retirement benefit (if applicable) is permanently reduced. *Spousal strategies update - Changes are on the horizon. Refer to slides 18 and 31.
Page 17 | 25312-05-1215

File & Suspend
Rules Applicable When Suspension is
Requested On or Before April 29, 2016 1
• Retirement benefits of the insured worker who requests the suspension are suspended.
• Benefits received by a spouse (and/or other family members) based on the suspended worker’s record are NOT suspended.
• Retirement benefits of the insured worker who requests the suspension are suspended.
• Benefits received by a spouse (and/or other family members) based on the suspended worker’s record are ALSO suspended.
Note: Insured worker who suspends retirement benefits may not receive any benefit payable on the basis of another’s work record (i.e. spousal benefits).
Before engaging in this strategy, consult with your local Social Security and Medicare offices for information on the implications that such a strategy may have on other benefits for which your clients may be eligible.
1 Under the Bipartisan Budget Act of 2015, the new rules concerning the File & Suspend strategy will take affect at least 180 days after the date of the enactment of this legislation (April 30, 2016). As this date nears, watch for further communications from the Social Security Administration concerning the effective date. Clients should check with their local Social Security office for other deadlines that may be imposed due to application processing and benefit eligibility.
Page 18 | 25312-05-1215
Rules Applicable When Suspension is
Requested After April 29, 2016 1

Hypothetical Case Study: Comparing Options Based Only on Work Histories
David and Susan
• David is 66.
• His wife Susan is 64 and worked most of her life.
• What will be their Social Security retirement benefits if:
– Both claim Social Security as soon as
David retires
– Each claim at their respective FRA
– Each claim at 70
This case study is a hypothetical illustration only. Assumptions: He has monthly benefits equivalent to the average male. Monthly benefits at: 66-
$1,500, 70- $1,981. She has monthly benefits equivalent to the average female worker. Monthly benefits at: 64 = $982, 66- $1,133, 70- $1,495.
Source: Social Security Administration. "Annual Statistical Supplement to the Social Security Bulletin, 2015." Table 5.A1.1-Number and Average Monthly
Benefit for Retired Workers by Age.” www.ssa.gov
.
Page 19 | 25312-05-1215

Claim at Age 70 to Maximize Social Security Benefits
Annual Social Security Benefits Based Only on Earnings
Household Social
Security: $42,000
Household Social
Security: $30,000
Household Social
Security: $31,500
This case study is a hypothetical illustration only. All assumptions assume they keep working until they collect Social Security. Both claim at his FRA: He receives full benefit of $18,000. Since she is under FRA, she receives higher of her reduced benefit or her reduced spousal benefit (she cannot pick and choose benefits if under FRA). In this case, reduced personal benefit is greater than reduced spousal. Both claim at FRA: he receives his full benefit of $18,000. She chooses her full benefit of $13,500, which is greater than spousal benefit of $9,000 (0.5*$18,000=$9,000). Both claim at 70: Both take their maximum personal benefit.
Source: Social Security Administration. "Annual Statistical Supplement, 2014.” Table 5.A1.1. Annual Statistical Supplement, 2015 www.ssa.gov
.
Page 20 | 25312-05-1215

David and Susan
• For each strategy, David and Susan want to know the:
– Lifetime Social Security income
– Amount in her IRA at death
Assumptions: He starts off with $260,00 in his Traditional IRA and she has $140,000 in her Traditional IRA (c.f. EBRI Issue Brief May, 2014); Assume both pass away at life expectancy of a 66 year old per SSA (82 for him, 85 for her). Assets increase by 5% per year. Assume Social Security benefits and cost of living increases by 2% per year. Withdrawal is greater of amount needed to fund retirement income needs or RMD.
Page 21 | 25312-05-1215

Claiming Social Security before FRA may Dramatically Reduce Legacy
This case study is a hypothetical illustration only. Assumptions: David starts off with $260,000 in his Traditional IRA and she has $140,000 in her Traditional IRA (c.f.
EBRI Issue Brief May 2014); they want $53,500 in annual income (c.f. Consumer Expenditure Survey, U.S. Bureau of Labor Statistics. September, 2014). Assume both pass away at life expectancy of a 66 year old per SSA (82 for him, 85 for her). 1) Both claim when he is 66 and immediately start withdrawing from personal assets; 2)
Both claim at their FRA: They live off her earnings + his Social Security until she retires; withdraw from IRA after she retires; 3) Both claim at 70: Both work until 70, then retire and claim maximum Social Security benefit. Assets increase by 5% per year. Assume Social Security benefits and cost of living increases by 2% per year.
Withdrawal is greater of amount needed to fund retirement income needs or RMD.
Page 22 | 25312-05-1215

Advanced Claiming Strategies with Spousal Benefits
David and Susan
• David and Susan decide to take Social
Security when they are both 66.
• They are wondering:
– Are there other Social Security claiming options?*
– If so, what are the restrictions?
– What is the IRA balance after both pass away?
*Spousal Strategies Update: Changes are on the horizon. Refer to slides 18 and 31.
Page 23 | 25312-05-1215

62 63 64 65 66 67 68 69 70
Options if Claiming Before 66*
• Must take benefit (cannot file and suspend)
• Can not choose spousal or personal benefit
– If spouse already claiming: receive greater of reduced personal benefit or reduced spousal benefit
– If spouse not claiming: receive reduced personal; reduced spousal available when other spouse applies
Options if Claiming After Age 66*
• Can elect to file and suspend
– Allows other spouse to apply for spousal benefits
– Worker benefits still accrue delayed retirement credits
• Can choose to start off with spousal or personal
• Can switch benefits (personal or spousal)
• Claiming one benefit will not reduce the other benefit
In order to receive a spousal benefit, the other spouse must have filed for their own personal Social Security retirement benefits. Can suspend any time after age 66. However, can only choose between spousal and personal if you are Full Retirement Age when first applying for any benefit.
*Spousal Strategies Update: Changes are on the horizon. Refer to slides 18 and 31.
Page 24 | 25312-05-1215

Hypothetical Case Study: Both Take at 66
Susan retires at 66, starts her benefit
David retires at 66, starts his benefit David passes away
This case study is a hypothetical illustration only. Spousal Strategies Update: Changes are on the horizon. Refer to slides 18 and 31.
Page 25 | 25312-05-1215

Hypothetical Case Study: One Takes Personal Benefit at 66
David turns 70, switches to his benefit;
Susan’s benefit stays the same
Susan is 66, applies for her benefit, opens door for David to receive spousal
David passes away
This case study is a hypothetical illustration only. Spousal Strategies Update: Changes are on the horizon. Refer to slides 18 and 31.
Page 26 | 25312-05-1215

Hypothetical Case Study: Both Take Personal at 70, Susan Starts with Spousal at 66
Susan is 70, switches to her personal benefit
David turns 70, turns on his benefit and
Susan’s spousal benefit stays the same
Susan is 66, restricts application to spousal benefits only (David filed and suspended)*
David passes away
This case study is a hypothetical illustration only. *Spousal Strategies Update: Changes are on the horizon. Refer to slides 18 and 31.
Page 27 | 25312-05-1215

Advanced Spousal Strategies
May Increase Lifetime Social Security Income and Legacy
This case study is a hypothetical illustration only. Assumptions: He starts off with $260,000 in his Traditional and Roth IRA and she has $140,000 in her Traditional and Roth IRA
(c.f. EBRI Issue Brief May,2014); Assume both pass away at life expectancy of a 66 year old per SSA (82 for him, 85 for her). Both claim at 66: Both work until their respective age of
66 and then retire. She claims at 66, he starts with 50% of hers: He retires at 66; they live off of her earnings until his 68 (her age 66) . When she is 66, she retires and claims Social
Security on her benefits ($13,500). He files for spousal benefits ($6,750) and switches to his benefit at 70. They withdraw from their IRAs. File and Suspend: He retires at 66; they live off of her earnings until his age 68 (her age 66). When she is 66, she retires. He files for benefits and suspends. She starts off with spousal. When each is 70, they claim their own benefits. They withdraw from the IRA to supplement income. Assets increase by 5% per year. Assume Social Security benefits and cost of living increases by 2% per year.
Withdrawal is greater of amount needed to fund retirement income needs or RMD. Spousal Strategies Update: Changes are on the horizon. Refer to slides 18 and 31.
Page 28 | 25312-05-1215

Both Spouses Worked*
Can a client pick and choose between spousal or personal benefit before FRA?
No. Choosing between personal benefit and spousal benefit is only available if both are 66
(FRA)
What if both spouses claim before FRA?
Both receive higher of:
• Reduced personal benefit
• Reduced spousal benefit
What if one spouse claims before FRA?
• Receives reduced benefit based on his/her earnings record
• When second spouse claims
Social Security, the first spouse automatically receives higher of:
– Reduced Personal Benefit
– Adjusted Spousal Benefit
See slide 8 for details for more details on FRA. “Adjusted” spousal benefit only applies if a client claims Social Security before FRA, and then their spouse claims at a later date. The adjustment is: Spousal Benefit – Personal Benefit. This amount (if positive) is added to the client’s current benefit.
*Spousal Strategies Update: Changes are on the horizon. Refer to slides 18 and 31.
Page 29 | 25312-05-1215

Strategy
File and Suspend
Restricted Application
Description
Worker files application so that spouse can receive a spousal benefit; worker then suspends personal benefit; spouse receives spousal benefit, worker’s personal benefit continues to grow
Restrict application to spousal benefits only; receive spousal benefits; personal benefits continue to grow (spouse must have filed for their personal benefits in order to receive a spousal benefit)
Worker must be Full Retirement Age in order to suspend; applicant must be FRA in order to restrict application to spousal benefits only.
* Spousal Strategies Update: Changes are on the horizon. Refer to slides 18 and 31 for more information.
Page 30 | 25312-05-1215

Restricted Application
Individual Born in 1953 or Earlier Individual Born in 1954 or Later
• At FRA, an applicant (who was born in 1953 or an earlier year) may choose to limit or restrict the scope of his/her application by applying only for spousal benefits (if eligible), and not applying for his/her own retirement benefits.
• Restricted application for spousal benefits only allows for the individual’s own retirement benefits to accrue delayed retirement credits.
• An applicant (who was born in 1954 or a later year) may NOT apply for just one benefit (i.e., spousal benefits).
• An application for benefits will generally be an application for all benefits.
Note: For one spouse to receive spousal benefits, the other spouse must generally be receiving retirement or disability benefits.
Before engaging in this strategy, consult with your local Social Security and Medicare offices for information on the implications that such a strategy may have on other benefits for which your clients may be eligible.
Page 31 | 25312-05-1215

1.
How Benefits are Calculated
2.
Maximizing Income for Married Couples
3.
Maximizing After-Tax Income with Social Security
Page 32 | 25312-05-1215

Income Determines Whether or Not Social Security Benefits are Taxable
Social Security
Benefits Not
Taxable
Up to 50% of
Social Security
Benefits Taxable
Up to 85% of
Social Security
Benefits Taxable
$25,000 -
$34,000
$34,001 + Single
< $25,000 in income
Married,
Filing
Jointly
< $32,000 in income
$32,000 -
$44,000
$44,001 +
These thresholds were set in 1983 and are not indexed for inflation.
Sources: IRS Publication 915, Social Security Handbook question 2501, IRS Info 2009-0073 and www.ssa.gov
.
Page 33 | 25312-05-1215

• See IRS Form 1040 to determine if Social Security benefits are taxable
Pioneer does not offer tax advice. The information on this slide serves as a guide and does not replace the advice of a qualified tax advisor. Please contact a qualified tax advisor for specifics on a client’s individual circumstance.
Page 34 | 25312-05-1215

Determines Taxable Portion of Social
Security; Only 50% of Social Security Included
+
Tax Exempt
Income*
+
50% of
Social
Security
Income
=
Combined
Income
(Used to determine taxable portion of
Social Security benefits)
AGI (Adjusted Gross Income) is the last line of page 1 of the IRS Form 1040 (U.S. Individual Income Tax Return).
*May have to add in other exclusions such as deductions for interest on qualified educational loans and exclusions for savings bonds used for higher education. See IRS Publication 915, Social Security Handbook question 2501 and IRS Info 2009-0073 IRS Info 2009-0073 for further details.
Pioneer does not offer tax advice. The information on this slide serves as a guide and does not replace the advice of a qualified tax advisor. Please contact a qualified tax advisor for specifics on a client’s individual circumstance.
Page 35 | 25312-05-1215

Hypothetical Case Study
Claiming Age
Social Security
Income
Traditional IRA
Withdrawal
Total Income
John and Barbara
62
$20,000
$35,000
$55,000
Will their taxes be the same?
Robert and Mary
66
$27,000
$28,000
$55,000
Page 36 | 25312-05-1215

Only 1/2 of Social Security included in Combined Income
Total Income
John and Barbara
Traditional
IRA
$35,000
Social
Security
$20,000
Taxes
Taxes = $2,300
Robert and Mary
Traditional
IRA
$28,000
Social
Security
$27,000
Taxes = $1,225
Assumes couple is married, filling jointly. Standard deduction of
$12,600, exemptions of $8,000. Assumes Traditional IRA is entirely pre-tax. Additional age 65 deduction of $1,250 for married taxpayers was not applied in this situation to keep the comparison more accurate.
This case study is a hypothetical illustration only. Pioneer does not offer tax advice. The information on this slide serves as a guide and does not replace the advice of a qualified tax advisor. Please contact a qualified tax advisor for specifics on a client’s individual circumstance.
Page 37 | 25312-05-1215

Maximizing Excluded Items may Minimize Taxes
• Roth IRA Distributions
• Qualified Charitable Deductions
• Non-Taxable Pensions and Annuities
• Child Support
• Inheritance/Gifts
• Life Insurance Proceeds
• Qualified medical distributions from HSA
Pioneer does not offer tax advice. The information on this slide serves as a guide and does not replace the advice of a qualified tax advisor. Please contact a qualified tax advisor for specifics on a client’s individual circumstance.
Page 38 | 25312-05-1215

Hypothetical Case Study
Social Security
Income
Traditional IRA
Withdrawal
Roth IRA
Withdrawal
Total Income
John and Barbara
$20,000
$35,000
0
$55,000
Will their taxes be the same?
Michael and Patricia
$20,000
$20,000
$15,000
$55,000
Page 39 | 25312-05-1215

Total Income Taxes
John and Barbara
Traditional
IRA
$35,000
Social
Security
$20,000
Taxes = $2,300
Michael and Patricia
Traditional IRA
$20,000
Social
Security
$20,000
Taxes = $0
Roth IRA
$15,000 Assumes couple is married, filling jointly. Standard deduction of $12,600, exemptions of $8,000.
Assumes Traditional IRA is entirely pre-tax.
This case study is a hypothetical illustration only. Pioneer does not offer tax advice. The information on this slide serves as a guide and does not replace the advice of a qualified tax advisor. Please contact a qualified tax advisor for specifics on a client’s individual circumstance.
Page 40 | 25312-05-1215

84% percent of couples age
60-66 expect Social Security advice from a financial planner.*
Create strategies that maximize retirement income and reduce taxes on Social
Security benefits.
61% of couples aged 60-66 would switch advisors if their current advisor could not help them with Social Security.*
Focus on the couple’s benefits, not the individual’s.
Social Security is a major source of income for most households.**
Look beyond the numbers; small differences could have a large impact on the longevity of their assets.
*Social Security Timing and Market Tools: “Social Security Planning: The Emerging Cornerstone of Your Financial Practice?” August 2013.
** Social Security Administration. “Income of the Aged Chartbook.” SSA Publication No. 13-11727. April 2014. www.ssa.gov.
Page 41 | 25312-05-1215

Neither Pioneer, nor its representatives are legal or tax advisors. In addition, Pioneer does not provide advice or recommendations. The investments a client chooses should correspond to a client’s financial needs, goals, and risk tolerance. For assistance in determining a client’s financial situation, please consult an investment professional.
Securities offered through Pioneer Funds Distributor, Inc.
Underwriter of Pioneer mutual funds, Member SIPC
60 State Street
Boston, Massachusetts us.pioneerinvestments.com
 2016 Pioneer Investments
Page 42 | 25312-05-1215

Page 43 | 25312-05-1215