T. Rowe Price is launching its Social Security Optimizer, a personalized tool designed to help investors and plan participants maximize on their Social Security benefits.
The tool provides tailored insights through a series of questions on participants’ life circumstances, including marriage, divorce, age, and more.
Specifically, T. Rowe Price says the product gauges life expectancy and can “see what claiming strategies will yield the most amount of money over time.” The tool would then estimate at what point investors and their partners, if any, should begin claiming Social Security and the amount they would receive given their anticipated lifespan.
The Social Security Optimizer also pairs broader education and resources to help individual investors and participants make more informed decisions, according to T. Rowe Price.
“It is crucial for retirees to have a well-thought-out plan in place to help ensure a comfortable and financially secure future. By using this personalized data and rethinking how you claim your Social Security benefits, individuals could maximize their lifetime benefits,” said Bill Meyer, head of Retiree Inc. at T. Rowe Price, in a statement. “As a leader in retirement, we are excited to continue to expand our offerings and leverage Retiree Inc.’s powerful technology to help individuals optimize their income in retirement.”
The new product comes after the firm acquired fintech firm Retiree Inc. in 2023. At the time, T. Rowe Price said the acquisition would help the company deliver “new solutions to clients to deliver improved outcomes.”
Overall life expectancy has risen in the past, with the CDC’s National Center for Health Statistics showing an overall increase of 1.1 years in 2022. This followed a former loss of 2.4 years between 2019 and 2021, largely due to excess deaths during the COVID-19 pandemic.
Life expectancy estimations can make a sizable difference when considering retirement planning, and especially when collecting Social Security benefits. Understanding a participant’s lifespan can help them determine at what age they should begin receiving agency benefits and if they can maximize on the most dollars.
This is particularly crucial given how life expectancies have changed since Social Security began paying out benefits in 1940. At the time, men tended to live to age 61.4 compared to age 65.7 for women. Today, those ages have grown to 84.1 for men and 86.8 for women, according to the Social Security Administration.
SEE ALSO:
- T. Rowe Price Buys Retiree, Inc. to Bolster Retirement Income Capabilities
- CDC: Life Expectancy Increased in 2022
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.
