Products August 19, 2014

Social Security Administration Encourages Use of Online Tools

The Social Security Administration has declared this week “National my Social Security Week.”
Reported by

The administration is asking for help encouraging Americans to sign-up for their own my Social Security account. It is offering posters, publications, social media content and other tools to use for promotion.

In a recent report, Mercer and the Stanford Center on Longevity suggest retirement plan participants make a variety of common and costly mistakes when it comes to optimizing their retirement readiness. One of the most widespread is not knowing how to most effectively time the start of Social Security payments (see “Can Social Security Be a Silver Bullet?”). 

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As the research explains, total retirement income can be amped up with the right Social Security planning. Another recent research report from financial advice provider Financial Engines suggests employers are increasingly interested in teaching employees about this fact. Additionally, a survey by the Nationwide Financial Retirement Institute found many retirees regret their decision to take Social Security benefits early.

The Social Security Administration says a personal online my Social Security account is a valuable source of information beginning in employees’ working years and continuing throughout the time they receive Social Security benefits. Through the account, individuals can get their benefit verification letter and check their benefit information and earnings record, among other things.

More information about “National my Social Security Week” is here.

In Practice August 19, 2014

Older DC Participants Using Social Media Too

Defined contribution (DC) retirement plan participants across all age groups are taking to social media for financial information and advice, according to Spectrem Group.
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A new report from Spectrem’s DC Participant Insight Series, “Using Social Media and Mobile Technology in Financial Decisions,” shows more than two-thirds of plan participants ages 50 and older are on Facebook. Around half are on LinkedIn, and 12% of participants overall say they regularly research financial information on social media.

The report suggests Facebook and LinkedIn have become the most popular social media sources for financial and investment information. In addition, one in 10 plan participants uses LinkedIn to screen potential advisers and other financial services providers. Sixteen percent say they would follow a trusted adviser if the adviser was active on Twitter.

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Nearly half of participants (42%) say that recent, high-profile hackings have become a source for concern in sharing financial information on social media, though privacy concerns usually come from people older than age 50, Spectrem says.

Meanwhile, 19% of plan participants say they rely more on social media than on phone calls to communicate with others, a slight decrease from last year (20%).

“Social media is still new and fragile territory for financial activity,’’ says George H. Walper Jr., president of Spectrem Group. “But we are seeing slow and steady growth, from the federal level to the investor, in using these platforms for investment dialogue, relationships and servicing.”

More DC industry research from Spectrem Group is available at www.millionairecorner.com.

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