Adding Social Security Income (SSI) to a client's profile

Default Social Security income cards

RightCapital will automatically generate an SSI card for each client and co-client created on a profile. To edit the values, simply click on the card to expand it.

If the client / co-client is already receiving benefits, check the Already receiving box on the card.  You will be able to enter the monthly amount they are receiving.  You can also enter the year in which the client started receiving benefits, which will allow us to calculate any spousal benefits for the other client.

If the client has not begun receiving benefits, select the Start age and the Estimated benefit amount:

The Start age is the age when benefits will be included in analyses of the client's current plan. It is also what will be reflected in the Current strategy for comparison in the Social Security optimization screen. 

Use the Estimated benefit amount drop-down box to select how Social Security benefits will be calculated. The options are:

  • Use simple estimate – the social security benefit is estimated using the income and projected annual increase entered in any Salary or Self-employment income card. The income is projected backward and forwards to generate a history of earnings that is used to determine the benefit amount.
  • Based on full retirement benefit – Enter the client's Projected Insurance Amount (PIA) at full retirement age that can be found on their Social Security statement. Tip: enter the value at full retirement age, irrespective of the Start age. RightCapital will reduce benefits or add delay credits to the benefit amount as appropriate based on the Start age.
  • Based on historical covered earnings – Enter in annual covered amount for each year and RightCapital will use those earnings to calculate the Social Security benefit. The future income based on the Salary / Self-employment income will be added in.
  • No Social Security – no Social Security benefit will be calculated on this client's record. RightCapital will, however, continue to factor in a Spousal benefit if appropriate.

Spousal and survivor benefits will be automatically calculated. All benefit amounts will be inflated by the global Social Security inflation rate that can be updated in Assumptions, both before and after the client starts receiving benefits.

Click Save to retain the values assigned.

WEP & GPO

RightCapital does not calculate the impact of the Windfall Elimination Provision (WEP) on Social Security benefits. If clients are subject to WEP, enter the value after WEP.

If clients are subject to a Government Pension Offset (GPO) that will reduce any spousal benefits they would otherwise receive, check the Non-covered box to have that pension amount offset the spousal benefit.

How do I enter Social Security benefits that are not included?

Certain child, divorce, or widow(er) benefits are not calculated in this tool. To reflect additional benefits, add an Other Income card on the  Profile > Income page. This can incorporate any additional benefits that clients may be receiving. 

Use the drop-down box to select Social Security as the tax attribute. This income is calculated separately from the client/spouse’s retirement benefit but is taxed as social security income.

How do I exclude salaried income from Social Security?

To exclude salary income from Social Security taxes and from being considered in the estimated Social Security calculation, click on the Exclude from SS tax checkbox on the Salary card.

Did this answer your question? Thanks for the feedback There was a problem submitting your feedback. Please try again later.

Still need help? Contact Us Contact Us