JHF II Disciplined Value Emerging Markets Equity Fund - Class I · NASDAQ:JEVIX
JHF II Disciplined Value Emerging Markets Equity Fund - Class I — John Hancock Investment Management — Investor Presentation (2024)
70 slides from JHF II Disciplined Value Emerging Markets Equity Fund - Class I's investor presentation, 2024
Slide 1: Understanding Social Security decisions: optimizing your benefits
Understandi ng Social Security decisions: optimizing your benefits Presenter Full Name Date Distribution or reproduction of the content contained in this program is prohibited without the express written permission of John Hancock Investment Management.
Slide 2: Table of contents
Table of contents The roots of Social Security Where Social Security stands today Understanding & maximizing your Social Security Benefits Changes for 2024 2
Slide 3: The roots of Social Security
The roots of Social Security 3
Slide 4: The roots of Social Security
The roots of Social Security 1935 1937 1940 Social Security Act Taxes were collected Regular ongoing was signed into law for the first time in monthly benefits on August 14 January and the first started in January one-time, lump-sum payments were made that same month Source: ssa.gov 4
Slide 5: The roots of Social Security: 1940
The roots of Social Security 1940 “ On January 31, 1940, the first monthly retirement check was issued to Ida May Fuller of Ludlow, Vermont, in the amount of $22.54. Miss Fuller, a legal secretary, retired in November 1939. She started collecting benefits in January 1940 at age 65 and lived to be 10
Slide 6: Social Security statistics
Social Security statistics By 2035, the number of Almost 67 million In 1940, the life people age 65 or older is people currently expectancy of a 65 year expected to increase to over 75 million, from 58 receive benefits old was almost 14 years, million today today it is over 20 years Among Social Sec
Slide 7: Where Social Security stands today
Where Social Security stands today 7
Slide 8: It appears to be in financial trouble
Where Social Security stands today It appears to It will almost It still won’t be in financial certainly grow fast trouble be fixed enough 8
Slide 9: Social Security appears to be in trouble
Social Security appears to be in trouble 1950 2023 The average life expectancy 68.14 years 79.11 years of retirees is longer today1 Retired workers Spousal benefits Social Security benefits Retired workers Survivor benefits cover more people Disability benefits Family benefits There are far fewer wo
Slide 10: Social Security's days of reckoning
Social Security’s days of reckoning 2010 Started paying out more in benefits than it collected in revenues 2021 Trust fund reserves grew until 2021 2035 The surplus is expected to be depleted by 2034 and the program may only be able to meet 78% of its obligations. Source: Source: ssa.gov, 2023 10
Slide 11: Proposals to strengthen Social Security
Proposals to strengthen Social Security Increase the payroll Raise the FRA tax rate (currently 6.2%) Include state and local Increase payroll tax government employees in cap ($168,600 in 2024) Social Security Eliminate payroll Reduce benefits for tax cap higher-income earners Source: Thomson Reuters
Slide 12: Reality: it remains supplemental
Reality: Social Security benefits are more modest than many people realize it remains supplemental Percentage of preretirement income replaced by Social Security income • The average Social Security retirement benefit in 2024 is $1,907 a month, or about $22,884 a year. • Lower income earners will re
Slide 13: Understanding and maximizing your Social Security benefits
Understanding and maximizing your Social Security benefits 13
Slide 14: People are living longer
People are living longer Life expectancy Age 66 (in 2023) 86 Male 92 88 Female 94 Either Partner in 92 a Couple 96 50% chance of living to age 25% chance of living to age Source: Society of Actuaries, 2023. longevityillustrator.org. Results assume that people are in average health for a couple age 6
Slide 15: Social Security elections: factors to consider
Social Security elections Factors to consider Need Longevity Health income Age Married Difference* *The greater the age difference, the longer the benefit payment and the bigger the impact when making an early election 15
Slide 16: COLA adjustments over the years
COLA adjustments over the years Social Security cost-of-living adjustments 10.0% 9.0% 8.7% 8.0% 7.0% 6.0% 5.9% 5.0% 4.0% 3.6% 3.2% 3.0% 2.8% 2.0% 2.0% 1.7% 1.5% 1.7% 1.6% 1.3% 1.0% 0.3% 0.0% 0.0% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Source: ssa.gov, 2023 The Consumer Pric
Slide 17: How Social Security is calculated
How Social You must have worked and paid into Social Security is Security for at least 10 years (earned 40 credits at 4 credits per year) calculated Your earnings are restated in terms of today’s wages to reflect wage growth Your highest 35 years of earnings are averaged and divided by 12 to arrive
Slide 18: What is full retirement age?
What is full retirement age? If claiming If claiming Year of birth FRA at age 62 benefit at age 70 benefit is reduced to: is increased to: 1943–1954 66 75.00% 132.00% 1955 66 and 2 months 74.17% 130.67% 1956 66 and 4 months 73.33% 129.33% 1957 66 and 6 months 72.50% 128.00% 1958 66 and 8 months 71.6
Slide 19: When to take individual benefits
When to take individual benefits Year of Birth 1943 - 1954 1955 1956 1957 1958 1959 1960 or later 66 and 2 66 and 4 66 and 6 66 and 8 66 and 10 Full Retirement Age 66 67 months months months months months 75% 74.17% 73.33% 72.50% 71.67% 70.83% 70% Age 62 $1,500 $1,483 $1,467 $1,450 $1,433 $1,417 $1,
Slide 20: When to take individual benefits
When to take individual benefits Age Social % of FRA Amount of Security is taken benefits received benefits received Early 62 70% $1,400 FRA 67 100% $2,000 Delayed 70 124% $2,480 Source: This is only a hypothetical example. The full retirement age increases gradually if you were born from 1955 to 19
Slide 21: Know when to file
Know when to file Delaying benefits can increase the amount you receive over your lifetime Example of a $24,000 annual benefit at FRA of 67 $31,680 $29,760 $27,840 $25,920 $24,000 $22,399 $20,798 $19,200 $18,000 Total Total Total collected collected collected by age 87 by age 87 by age 87 $686,327 $
Slide 22: What is breakeven?
What is breakeven? Claim at age 62: $1,400 Claim at age 67: $2,000 Claim at age 70: $2,480 Total received assuming a monthly payment of: Breakeven points $1,400,000 Total benefits $1,200,000 at age 95 Claiming at: Age 67 vs 62 = Age 77.5 $1,000,000 $1,250,976 Claiming at: $800,000 $1,133,700 Age 70
Slide 23: Spousal benefits for non-working spouses
Spousal benefits for non-working spouses Non-working spouses can take a portion of their spouse’s PIA (primary insurance amount), as a benefit. Early election (age 62) At FRA or later (age 66–70) In order to qualify for the spousal benefit, the other spouse must have already filed for social securit
Slide 24: Spousal benefits for non-working spouses based on FRA
Spousal benefits for non-working spouses based on FRA If claiming at If claiming at Year of birth FRA age 62 benefit FRA benefit is reduced to: is increased to: 1943–1954 66 35.00% 50% 1955 66 and 2 months 34.58% 50% 1956 66 and 4 months 34.17% 50% 1957 66 and 6 months 33.75% 50% 1958 66 and 8 month
Slide 25: When to take spousal benefits
When to take spousal benefits Income Earners Full Retirement Age Benefit is $2,000 Year of Birth 1943 - 1954 1955 1956 1957 1958 1959 1960 or later 66 and 2 66 and 4 66 and 6 66 and 8 66 and 10 Full Retirement Age 66 67 months months months months months 35% 34.59% 34.17% 33.75% 33.33% 32.92% 32.50%
Slide 26: When to take spousal benefits
When to take spousal benefits Age Amount Social Security % of FRA of benefits benefits received is taken received Early 62 32.5% $650 FRA 67 50% $1,000 Delayed 70 50% $1,000 The FRA benefit of the primary wage earner is $2,000. Percentage is based on someone born in 1957; please consult ssa.gov for
Slide 27: Social Security benefits for working spouses
Social Security benefits for working spouses • Working spouses must take their own earned Social Security benefit. • A spousal “boost” is potentially available to working spouses. Calculation of Spousal “boost”: Divide the higher-earning spouse’s PIA in half Subtract the lower-earning spouse’s PIA R
Slide 28: Spousal benefit boost examples
Spousal benefit “boost” ‒ examples Half of higher-earning spouse’s PIA $1,000 John and Mary Subtract lower-earning spouse’s PIA 750 John PIA at FRA = $2,000 Mary PIA at FRA = $750 Spousal boost benefit at FRA 250 Half of higher-earning spouse’s PIA $1,000 Sue and Jeff Subtract lower-earning spouse’s
Slide 29: Widow / widower and children benefits
Widow / widower and children benefits Family members who Children can receive can collect benefits benefits if: include a widow or • They are unmarried widower who is: • Younger than 18 years old • 60 or older • Between 18 and 19 years old, • 50 or older, if disabled but in elementary or secondary •
Slide 30: When to take survivor benefits
When to take survivor benefits Age Social Security % of FRA Survivor Benefits is benefits received taken Early, not disabled 60 71.5% Early, higher % 62 80.3% Early, higher % 65 93.4% FRA (survivors) 66 and 8 months 100.0% Delayed 70 100.0% Source: SSA.gov, 2023. Percentage is based on someone born
Slide 31: Divorce rules for accessing Social Security benefits
Divorce 1 Marriage lasted 10 years or longer rules for 2 Currently unmarried accessing Social 3 disability benefit, or the couple has been The ex-spouse is receiving a retirement or legally divorced for at least 2 years Security benefits 4 Need to be age 62 to receive spousal benefit or age 60 (50 i
Slide 32: When to take divorce spouse benefits
When to take divorce spouse benefits Age Amount % of FRA Social Security benefits received of benefits is taken received Early 62 32.5% $650 FRA 67 50% $1,000 Delayed 70 50% $1,000 The FRA benefit of the primary wage earner is $2,000. Percentage is based on someone born in 1959; please consult ssa.g
Slide 33: Steps to withdraw Social Security benefits
Steps to follow if someone wants to withdraw Social Security benefits File Form SSA-521 within 1 year • No interest or penalty paid • Repay benefits received • Apply later • Kind of like a “trial run” • After filing SSA-521, SSA will send letter indicating amount of benefits to be repaid 33
Slide 34: Know when your benefits are taxable
Know when your benefits are taxable Social Security is subject to federal income tax if your combined (provisional) income is high enough What is combined (provisional) income? Your adjusted gross income + Nontaxable interest + ½ of your Social Security benefits = Your "combined (provisional) income
Slide 35: Federal income tax thresholds for Social Security benefits
What are the federal income tax thresholds for Social Security benefits? Percentage of Combined Combined Social income income Security for single filers for joint filers benefit that is taxable Less than Less than $32,000 0% $25,000 Between Between $32,000 $25,000 and Up to 50% and $44,000 $34,000 M
Slide 36: Taxation of Social Security benefits: state income tax
Taxation of Social Security benefits ‒ state income tax Tax some or all SS benefits: (12 states) CO, CT, KS, MN, MO, MT, NE, NM, ND, RI, UT, VT No state tax: (9 states) AK, FL, NV, NH, SD, TN, TX, WA, WY All other states (30) exclude SSB from taxation AL, AR, AZ, CA, DC, DE, GA, HI, ID, IL, IN, IA,
Slide 37: Restricted application
On December 31st, 2015, the restricted Restricted application option was eliminated for application people born after 1/1/1954 By using this approach, you could receive at least some Social Security benefits while still allowing your own retirement benefits to earn delayed credits until as late as a
Slide 38: Sample statement
Your Sample statement earnings record Current estimated benefit Explanation of benefit calculation Your total Social Security career contact taxes paid information As of 2018, Social Security only sends paper statements to clients age 60 or older who aren’t currently receiving benefits and don’t hav
Slide 39: Signing up for a Social Security account online
Signing up for a social security account online View and manage your Social Security benefits online by creating a free my Social Security account at ssa.gov/myaccount. It’s Gives you immediate access to important information quick and tools, putting you in control of your time! It’s Uses the best t
Slide 40: Changes for 2024
Changes for 2024 for Wanecck, Investment Management
Slide 41: Changes for 2024
Changes for 2024 Cost-of- Higher Full More Benefit living- potential retirement earnings changes for adjustment benefit for age subject to those still (COLA) new retirees increases Social working and increases Security receiving taxes benefits or working retirees Source: ssa.gov, 2023 Social Securit
Slide 42: A larger COLA this year
A larger COLA this The cost-of-living adjustment (COLA) year for 2024 is 3.2% The estimated average monthly Social Security benefit for all retired workers will go up from $1,848 pre-COLA to $1,907 after the 3.2% COLA - an increase of $59 What to do: Review your budget in light of the 2024 COLA. Sou
Slide 43: Higher potential benefit for new retirees
Higher For a retiree claiming benefits at FRA, potential the maximum retirement benefit he or she can receive increases to $3,822 per benefit for month in 2024, up from $3,627 in 2023. new retirees Delaying claiming Social Security benefits until after FRA could lead to higher benefits than the maxi
Slide 44: Full retirement age increases
Full For people who turn 62 in 2024, full retirement age (FRA) is now 67 years retirement age • FRA is when a retiree first becomes eligible for increases unreduced retirement benefits • FRA was 65 for many years. It’s increased gradually, starting with people born in 1938, and has risen to age 67 f
Slide 45: More earnings subject to Social Security tax
More The maximum earnings subject to Social Security tax are increasing to earnings $168,600 in 2024 subject to The limit on earnings subject to Social Security Social tax was $160,200 in 2023. Security tax The Social Security tax rate in 2023 is 6.2% on earnings up to the applicable taxable maximum
Slide 46: Benefits for those who are still working
Benefits for • Beginning in 2024, those who are still working and receiving a benefit prior to their FRA can those who have earned income up to $22,320 and can keep their full Social Security benefits. are still • Above the $22,320, $1 in benefits will be withheld working for every $2 in earnings up
Slide 47: Find a balance between working and collecting
Find a balance between working and collecting For early retirees, benefits are reduced by $1 for every $2 earned over $22,320 The Smiths The Sullivans Age 62: taking early benefits Age 67: FRA Potential Social $20,000 $36,000 Security benefit $17,680 No Earned income $40,000 over the $40,000 limit l
Slide 48: Example: Harry and Ruth Sullivan
Example: Harry and Ruth Sullivan Age 60 Married; both 60 62 64 66 Full age filing Harry’s full monthly Social Security benefit at age 67 will be $2,000 68 70 Ruth stayed home and raised the family, so she has 72 74 no earned Social Security benefits of her own. 76 Harry dies at 75 78 80 82 84 86 88
Slide 49: Scenario 1: both file early
Scenario 1: both file early Age 60 Married; both 60 62 Early filing Harry’s monthly Social Security benefit at age 62 is $1,400 64 66 Ruth’s monthly Social Security benefit is 68 32.5% of Harry’s PIA, or $650. 70 72 74 Ruth receives the higher of either 100% ($2,050) of Harry’s monthly Harry dies at
Slide 50: Scenario 2: both file at age 67
Scenario 2: both file at age 67 Age 60 Married; both 60 62 64 66 Harry’s monthly Social Security benefit at age 67 is $2,000 Full age filing 67 68 70 Ruth’s monthly Social Security benefit is 72 50% of Harry’s, or $1,000. 74 Harry dies at 75 Ruth collects 100% of Harry’s monthly Social Security bene
Slide 51: Scenario 3: both file at age 70
Scenario 3: both file at age 70 Age 60 Married; both 60 62 64 Ruth’s monthly Social Security benefit is 66 50% of Harry’s, or $1,092. 68 70 Delayed filing Harry’s monthly Social Security benefit at age 70 is $2,708 72 74 Harry dies at 75 Ruth collects 100% of Harry’s monthly Social Security benefit
Slide 52: Considerations before you file
Considerations before you file 1 Will your benefits be coordinated with those of a spouse? 2 Are you planning on working in retirement? Your financial professional has the experience and tools to help you plan! • Have you planned for how your required minimum distributions will affect your income mi
Slide 53: John Hancock Investment Management
feo Fancee Investment Management 53
Slide 54: Appendix
Appendix for Wanecck, Investment Management 54
Slide 55: Pop quiz
Pop quiz Q1: I’m 62, married, and the father of two kids under the age of 10. If I take Social Security now, could my kids receive a benefit? A: Yes. Your kids can receive a benefit based on your FRA. If you expect to receive $2,000 at FRA, then your child would receive $1,000—even if you file at 62
Slide 56: Bob & Lisa
Bob & Lisa Bob: • Bob and Lisa are a married couple who have no ex-spouses or children eligible for benefits on their earnings record. • DOB: August 16, 1962 • Full Retirement Age • Bob is a high wage earner and Lisa is an above average Benefit: $2,540 at 67 wage earner. • Expected Death Age: • Bob
Slide 57: Bob & Lisa
Bob & Lisa Option 1 – Maximizing benefits Option 2 – Maximizing survivor Bob: • Aug, 2032 Bob files for worker benefits benefits ($3,149) at age 70 for 124% • Jan, 2030 Lisa files for worker • DOB: August 16, 1962 of PIA benefits ($1,777) at age 67 for • Full Retirement Age • Jan, 2033 Lisa files fo
Slide 58: George & Joan
George & Joan • George and Joan, a married couple four years apart in George: age. • DOB: October 14, 1957 • George will reach full retirement age (FRA) at age 66 • Full Retirement Age Benefit: $2,647 at 66 and 6 months. year & 6 months • Joan will reach FRA at age 67. • Expected Death Age: 84.06 •
Slide 59: George & Joan
George & Joan Option 2 Option 1 George: • Oct, 2027 George files for worker • Oct, 2024 Joan files for worker benefits ($3,388) at age 70 for benefits ($509) at age 62, 1 month for • DOB: October 14, 1956 129.3% of PIA (42 Months Delayed 70.417% of PIA (59 Months Retirement Credit). Reduction). • Fu
Slide 60: Greg & Alice
Greg & Alice Greg: • Greg and Alice are a married couple. • DOB: August 29, 1962 • Greg is a high earner and Alice is a middle-income earner. • Full Retirement Age There is over 7 years difference in their ages. Benefit: $2,153 at 67 • Expected Death Age: • Greg should consider waiting beyond his FR
Slide 61: Greg & Alice
Greg & Alice Option 1 Option 2 Greg: • Aug, 2032 Greg files for worker • Feb, 2032 Alice files for worker • DOB: August 29, 1962 benefits ($1,020) at age 62, 1 month benefits ($2,669) at age 70 for for 70.42% of PIA (59 Months 124.00% of PIA (36 Months • Full Retirement Age Reduction). Delayed Retir
Slide 62: Brenda
Brenda • Brenda was married to her ex-husband for more than Brenda: 10 years. • DOB: May 3, 1964 • Her ex-spouse has passed away and she is now • Full Retirement Age Benefit: $2,630 at 67 eligible for Surviving Divorced Spouse benefits or her own retirement benefits. • Expected Death Age: 87.05 • Sh
Slide 63: Brenda
Brenda Option 1 Option 2 Brenda: • May, 2024 Brenda files for survivor • May, 2024 Brenda files for • DOB: May 3, 1964 divorced benefits ($1,349) at age 60 survivor divorced spouse for 71.5% of PIA. benefits ($1,349) at age 60 for • Full Retirement Age 71.5% of PIA. • May, 2029 Brenda files for work
Slide 64: Social Security offsets: WEP and GPO
Social Security offsets: Public employees / Gov’t pension WEP – Windfall Elimination Provision GPO – Government Pension Offset WEP applies if you have 40 Social Security credits & a pension from a non-Social Security system (PERS, STRS, SERS, etc)— you are guaranteed a benefit in this case – but the
Slide 65: States where employees are penalized by the WEP/GPO
States where state, county, municipal and special district employees are penalized by the WEP/GPO Ohio Colorado Illinois California Louisiana Texas Source: https://ssfairness.org/gpo-wep-faq/, 2023. 65
Slide 66: Government Pension Offset
Government Pension Offset GPO applies to any Social Security spouse / widow benefits you might receive if you also have a non-Social Security system pension. Offset equals two-thirds of public employee pension. Reduce eligible Social Security Benefit by two-thirds of public employee pension. Recipie
Slide 67: GPO example
GPO example Mary is receiving a state pension of $3,000 per month. She is entitled to $1,000 in spousal benefits. Mary’s spousal benefit is reduced to $0. Spousal benefit at FRA $1,000 GPO offset ($3,000 x .667) - 2,000 Spousal benefit None This is only a hypothetical example. Please consult ssa.gov
Slide 68: GPO example (continued)
GPO example (continued) Mary is receiving a state pension of $3,000 per month. She is entitled to SSB of $3,500 as a widow. Mary’s widow SS benefit is computed as follows. Widow benefit at FBA $3,500 GPO offset ($3,000 x .667) - 2,000 Widow benefit $1,500 This is only a hypothetical example. Please
Slide 69: More information
More information This material does not constitute tax, legal, or accounting advice, and neither John Hancock nor any of its agents, employees, or registered representatives are in the business of offering such advice. It was not intended or written for use, and cannot be used, by any taxpayer for t
Slide 70: John Hancock Investment Management
fro cock, Investment Management Acomparyot ff Manulife Investment Management
John Hancock Investment Management — Investor Presentation (2024) on 6ix