Independent registered investment adviser (RIA) Financial Engines said in a statement it would incorporate the Social Security Administration’s newly announced Social Security data file in its Financial Engines Social Security planner. The data file program was announced during Monday’s White House Conference on Aging.
The Administration has created an easily transferrable data file for individuals with the information in their monthly Social Security benefit statements. An accompanying guide helps developers understand how to incorporate the data into new software. Tools that use the information could combine it with self-reported information about an individual’s retirement savings in 401(k)-style plans and IRAs to help them understand the amount of resources they will have available, determine how much to save, and figure out when to claim Social Security benefits, among other important financial planning and retirement decisions.
The integration of the Social Security Administration data with Financial Engines’ Social Security planner, which was unveiled in June 2014, will help users more accurately estimate their expected Social Security benefit amount when planning for retirement. The Social Security planner considers multiple strategies and provides users with a personalized strategy that accounts for multiple income sources and the realistic life expectancies of both spouses in a married household.
“Social Security will be the largest retirement asset for many Americans, with lifetime earned benefits dwarfing what they have saved in their 401(k)s,” said Kelly O’Donnell, executive vice president of Financial Engines. “Financial Engines helps Americans maximize their Social Security benefits and make the most of their retirement savings and investments to achieve a rewarding retirement.”