60039973 unlocking social security

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[FINRA Professionals Name]

[FINRA Professionals Title]

[FINRA Member Firm]

APPSS0211-ST

I HAVE A QUESTIONThe Keys to Unlocking Social Security and

Making Your Benefits Work for You

Annuities are issued by Transamerica Life Insuranc e Company in Cedar Rapids, Iowa and Transamerica Financi al Life Insurance Company in Harrison, NewYork and Transamerica Funds are mutual funds advised by Transamerica Asset Management, I nc. Variable annuities and mutual funds are distrib uted byTransamerica Capital, Inc. References to Transamerica pertain either individually or collectively to these Transamerica companies. Transameri ca Financial LifeInsurance Company is licensed in NewYork.

Annuities may lose value and are not insur ed by the FDIC or any federal government agen cy. They are not a deposit of or guarante ed by any bank,bank affiliate, or credit union.

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IMPORTANT DISCLOSURE

This material is provided for educational purposes only and d oes not constitute investment advice. Theinformation contained herein is based on current tax laws , which may change in the future. Transamericacannot be held responsible for any direct or incidental loss resulting from applying any of the informationprovided or from any other source mentioned. The information provided does not constitute any legal, tax oraccounting advice. Please consult with a qualified professional for this type of advice.


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HOW IT STARTED

Social Security Administration, A Brief History of Social Security, August 2000.

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WHY ITS IMPORTANT

Social Security is stilla major source of income

to those 65 or older.

Social Security Administration, "Fast Facts & Figures About Social Security, 2010"


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I HAVE A QUESTION

Well address common concerns about:

Filing for Social Security

Utilizing spousal benefits

Taxes and Medicare

Youll learn:

How to determine your Full Retirement Age

Simple strategies to maximize your benefits

To better understand the nuances of Social Security

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WHEN SHOULD I FILE FOR BENEFITS?

Social Security Administration, Retirement Planner Retirement Benefits by Year of Birth, 2011," SSA.gov

AGE TO RECEIVE 100% OF MONTHLY BENEFIT

In order to understand when you are eligible to begin benefits, you need toknow yourFull Retirement Age.

Your Full Retirement Age is based on the year you were born*.The younger you are, the older youll have to be to reach it.

*If born Jan. 1, the SSA fi gures your benefit as if you were born the previous year.


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Social Security Administration, Retirement Benefits, 2010, SSA.gov

You may elect to receive:

Full benefits at Full Retirement Age

Reduced benefits as early as the first full month you reach age 62

Increased benefits, if benefits are delayed beyond Full RetirementAge (up to age 70)

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Social Security providesyearly increases forthose who delay thestart of benefits.

Delaying benefits untilage 70* represents a32% increase inmonthly payments.

Social Security Administration, When to Start Receiving Retirement Benefits, 2008, and Retirement Planner: Delayed Retirement Credits, 2010, SSA.gov

INCREASE FOR DELAYED RETIREMENT

WHAT THIS MEANS FOR MONTHLY BENEFITS

*If born Jan. 1, the SSA fi gures your benefit as if you were born the previous year.


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Other considerations include:

Health

Life expectancy

Marital status

Lifestyle expectations

Years in the workforce

Other retirement assets

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CAN I STILL WORK AND RECEIVE BENEFITS?

Working beyond Full Retirement Age may actually increase your benefits.

But, if you elect to begin benefits prior to reaching Full Retirement Age,you must be aware of earnings limits. Surpassing these will result in areduction of benefits.

Social Security Administration, Retirement Benefits 2010, a nd How Work Affects Your Benefits 201 1, SSA.gov

UNDERSTANDING THE EARNINGS LIMITS


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CAN I ESTIMATE WHAT MY BENEFITS WILL BE?

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WHAT IS THE MAXIMUM BENEFIT AVAILABLE?

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HOW ARE MY BENEFITS CALCULATED?

In order to be eligible, you must have enough credits. Generallyspeaking, this translates to 10 years in the workforce for a 62-year-oldfiling today.

Credits only determineeligibility not the amount of payments.

Payment amount is based on earnings history calculated using monthlyearnings during the 35 years in which you earned the most.

You can calculate your benefits yourself by visiting the Social SecurityAdministration website (SSA.gov).

13Social Security Administration, Your Retirement Benefit: How It Is Figured , 2010, and Understanding the Benefits, 2011, SSA.gov

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HOW CAN I UTILIZE SPOUSAL BENEFITS?

Rules to keep in mind*

You must be age 62 or older to qualify.

You cannot collect a spousal benefit until your spouse files for theirown benefit.

If you file for spousal benefits at Full Retirement Age, spousalbenefit will be equal to 50% of your spouses Primary Insurance

Amount (PIA).

These rules also apply for divorced-spouse benefits, as long as themarriage lasted at least 10 years and the non-filing spouse has notremarried.

Benefits stop for a divorced spouse upon remarriage.

Social Security Administration, Retirement Benefits, 2010, and Retirement Planner Benefit s for Spouses, 2008, SSA.gov

*Rules applicable in most situations. Some exceptions exist. .


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File and Suspend strategy:

Makes it possible for married taxpayers who retire at different agesto suspend and collect benefits optimally.

Higher-earning spouse (in this case, the husband) files at FullRetirement Age and immediately suspends his benefits. His wife isentitled to 50% of husbands Primary Insurance Amount (onceshes 62) and he can wait to receive higher benefit at age 70.

Not only can this strategy increase monthly benefits down the road,it ensures a higher benefit if the husband dies first. His wife will still

be entitled to receive 100% of husbands entitlement at the time ofhis death.

Educated Investor Featured Article, File and Suspend, July 2009 .

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Claim Now, Claim More Later strategy:

Allows married couples to begin receiving benefits now and stillreceive larger delayed benefits later.

Higher-earning spouse (in this case, the husband) claims spousalbenefit at Full Retirement Age (wife must have already filed for her

own benefits) and then husband switches to his own benefit at age 70.

Center for Retirement Research, Strange But True: Claim Social Security Now, Claim More Later, April 200 9


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WHAT ABOUT TAXES?

Uncle Sam will not cut you a break in retirement

The Social Security Administration defines combined income as adjusted gross income + nontaxableinterest + of Social Security benefits.

Social Security Administration, Taxes and Your Social Security Benefits, 2010, SSA.gov

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WHAT ABOUT TAXES?

Tax strategies to consider:

Delay benefits (and potential taxes on the benefits) while generatingincome from other assets.

Generate retirement income with Roth IRA distributions. Distributionsare not taxable, and can help lower income.

Utilize a tax-qualified professional to customize a strategy based onyour individual needs.


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WHEN WILL I BE ELIGIBLE FOR MEDICARE?

Most have to be 65 years of age or older. Those with certain disabilitiesmay qualify for Medicare regardless of age.

Enrollment is automatic for some who receive Social Security benefits.However, many must apply on their own. Late enrollment may

result in costly penalties.

Must contact the SSA to opt out of Part B coverage.

Centers for Medicare & Medicaid Services, Medicare & You, 2011, Medicare.gov

THE FOUR PARTS OF MEDICARE

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UNLOCKING SOCIAL SECURITY

What weve learned:

What you need to consider when deciding when to file

How you and your spouse can work together to optimize benefits

What to expect with Taxes and Medicare

Visit SSA.gov to learn more


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TRANSAMERICAS I HAVE A QUESTION CLIENT GUIDE

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60039973 unlocking social security

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