Planning for retirement got more challenging recently, thanks to the Social Security Administration's (SSA) announcement in December 2010 of new rules surrounding so-called interest-free loans. Many clients who planned to take advantage of this strategy will no longer be able to do so, which could have a big impact on retirement cash flow planning and perhaps even their retirement start date.

First, let's review how these interest-free loans worked. As most financial advisors will attest, determining when to claim Social Security benefits is perhaps one of the most important decisions a retiree can make. The SSA permits retirees to apply for reduced benefits as early as age 62-or to delay receipt of benefits to full retirement age or age 70, when the monthly benefit, which includes delayed retirement credits, is much higher.

Register or login for access to this item and much more

All Financial Planning content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access