This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

T. Rowe Price Introduces Social Security Calculator





BALTIMORE, March 21, 2013 /PRNewswire/ -- T. Rowe Price (Nasdaq:TROW) has launched the Social Security Benefits Evaluator, a free online Social Security calculator designed to help individuals decide what Social Security strategy may be suitable for their financial goals. The calculator is available at troweprice.com/socialsecurity.

To view the multimedia assets associated with this release, please click http://www.prnewswire.com/news-releases/t-rowe-price-introduces-social-security-calculator-199237901.html

Prompted by the need to consider how Social Security fits into an individual's overall retirement income strategy, T. Rowe Price created the calculator to offer guidance on how an individual's goals can help determine when and how to take Social Security. The calculator not only estimates Social Security income, but also presents potential approaches for taking benefits based on the users' goals and allows them to compare results of different Social Security strategies.

Many Social Security recipients may not realize that they could potentially receive more income or cater that stream of income to their needs by choosing one strategy over another. The calculator aims to help them better understand these choices and think about them in context of their retirement income needs.

Social Security Facts                        

  • Deciding when and how to take Social Security can potentially add hundreds of thousands of dollars to retirement income. Social Security increases approximately 7% to 8% each year benefits are delayed, between ages 62 and 70.
  • Seventy-four percent of retired workers claim benefits prior to their full retirement age and consequently receive reduced benefits.*
  • For many, Social Security is the only source of guaranteed retirement income.
  • Social Security benefits provide the largest source of aggregate income (37%) for those age 65 and older.*
  • Seventy percent of respondents surveyed feel somewhat or very knowledgeable about Social Security, but less than 20% actually scored well on a Social Security literacy test.**
  • The Social Security Handbook has more than 2,700 separate rules governing the program's benefits.

Calculator Details

  • The Social Security Benefits Evaluator prompts users to choose a goal for their Social Security income. Married couples can select one of seven goals, ranging from, "we want to maximize cumulative benefits as a couple" to "we want to minimize the drop in income for the surviving spouse." Singles can select one of three goals.
  • After users provide some background information and choose a goal, the calculator offers a Social Security benefits strategy and estimates Social Security income based on the strategy.
  • Income is shown as an annual cash flow as well as a cumulative total to help users understand how the stream of income can be taken differently depending on their specific needs.
  • Users can easily change their goals and compare how different strategies can generate different income streams throughout retirement.
  • A glossary of more than 56 Social Security terms is provided in the right navigation pane of the tool to help users understand the jargon commonly used when discussing benefits.
  • The calculator is an appropriate resource for singles who are evaluating benefits based on their own work history, married couples with no more than six years' difference in age, and financial advisors who want to provide Social Security guidance to their clients. Retirement plan sponsors may also see the tool as an effective, no-cost resource for their participants.
  • T. Rowe Price will be continually evaluating opportunities to improve the calculator's capabilities and encourages users to provide feedback by accessing the "Feedback" link displayed after going through the tool.

Quotes

Christine Fahlund, CFP ®, Ph.D., senior financial planner with T. Rowe Price:

"Social Security is more important and complicated than many realize. We give a lot of attention to developing an appropriate investment strategy, but not enough attention is given to formulating an appropriate Social Security strategy.

"Many Social Security recipients may be leaving money on the table. We hope this tool begins to spark conversations about the choices pre-retirees are faced with when deciding when and how to claim benefits. People need to understand that the strategy they choose for taking their Social Security benefits needs to be based on their financial goals." 

About T. Rowe Price Founded in 1937, Baltimore-based T. Rowe Price Group, Inc. ( troweprice.com) is a global investment management organization with $576.8 billion in assets under management as of December 31, 2012. The organization provides a broad array of mutual funds, subadvisory services, and separate account management for individual and institutional investors, retirement plans, and financial intermediaries. The company also offers sophisticated investment planning and guidance tools. T. Rowe Price's disciplined, risk-aware investment approach focuses on diversification, style consistency, and fundamental research.

*Social Security Administration

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,880.36 -31.75 -0.19%
S&P 500 1,970.07 +0.12 0.01%
NASDAQ 4,462.9020 +20.2040 0.45%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs