1. AD09234 (8/09) Cat# 143971 AXA Advanced Markets For MCLE, CPE and Financial Professional Use Only. Not for Distribution to the General Public. Social Security Getting the Most Out of Your Benefits Name: Mike Agan, CFP®, ChFC, CRC, CRA Location: Date:

2. AD09234 (8/09) For MCLE, CPE and Financial Professional Use Only. Not for Distribution to the General Public. Understanding the Basics  Sources of Retirement Income Social Security Pension plans Personal savings

3. AD09234 (8/09) For MCLE, CPE and Financial Professional Use Only. Not for Distribution to the General Public. Social Security  Understanding the Value  Solvency  When to Begin Talking Benefits  Working and Receiving Benefits  Maximizing Benefits

4. AD09234 (8/09) For MCLE, CPE and Financial Professional Use Only. Not for Distribution to the General Public. Social Security: Understanding the Value  Social Security Value: Provides income your clients can’t outlive Provides income that is inflation adjusted Provides survivorship benefits Provides more income than you may think: 2009 Max Monthly Benefit:$2,323 10 Years:$319,561* 20 Years:$749,026* 30 Years:$1,326,186* *Assumes an average 3% increase each year for inflation.

5. AD09234 (8/09) For MCLE, CPE and Financial Professional Use Only. Not for Distribution to the General Public. Social Security: How it Works  Formula based on highest 35 years  Earnings indexed to inflation  Average Indexed Monthly Earnings (AIME) Source: Social Security Administration $4,483 Example: AIME=$5,420 90%($744)=$669.60 32%($3,739)=$1,196.48 15%($937) =$140.55 $2,006.63 Primary Insurance Amount (PIA)

6. AD09234 (8/09) For MCLE, CPE and Financial Professional Use Only. Not for Distribution to the General Public. Social Security: Estimating Benefits  Estimate Social Security Benefits with: Annual Social Security Statement www.socialsecurity.gov www.ssa.gov  Click on Estimate Your Retirement Benefits for online calculators

7. AD09234 (8/09) For MCLE, CPE and Financial Professional Use Only. Not for Distribution to the General Public. Social Security: Estimating Benefits

8. AD09234 (8/09) For MCLE, CPE and Financial Professional Use Only. Not for Distribution to the General Public. Social Security: Estimating Benefits

9. AD09234 (8/09) For MCLE, CPE and Financial Professional Use Only. Not for Distribution to the General Public. Social Security: Spousal Benefits  A spouse can get 50% of primary worker’s benefits  A spouse will get the higher of their own benefit or the spousal benefit  Former spouses may be entitled to spousal benefits, but they must have been married for at least 10 years  Example: Bob and Sally Bob’s Benefit: $2,200 Sally’s Benefit: $700 Sally’s Spousal Benefit: $1,100 Sally will get $1,100

10. AD09234 (8/09) For MCLE, CPE and Financial Professional Use Only. Not for Distribution to the General Public. Social Security: Survivor Benefits  A surviving spouse will receive the higher of either their own benefit or their deceased spouse’s benefit Example: Bob and Sally  Bob’s Benefit: $2,200  Sally’s Benefit: $1,400  Bob passes away.  Sally’s benefit will increase to $2,200.  Requirements: The surviving spouse must be at least 60 years old.  The surviving spouse must be at least 50 years old if disabled. You must be married for at least 9 months prior to your spouse’s death.  There are exceptions for accidents.

11. AD09234 (8/09) For MCLE, CPE and Financial Professional Use Only. Not for Distribution to the General Public. Social Security: Solvency  2010: SSA pays more than it collects  2025: SSA taps principal  2037: Trust fund exhausted Collections continue  Projected 25% decrease in benefits after 2037 Payments Collections 2010 20252037 SSA Collection and Payment Comparison Source: Social Security Report to Congress, 2009

12. AD09234 (8/09) For MCLE, CPE and Financial Professional Use Only. Not for Distribution to the General Public. Social Security: Solvency  Fixing Social Security Raise the retirement age. Increase the cap on taxable earnings. Lower benefit payments for future retirees. Reduce Cost of Living Adjustments (COLAs) for all retirees.

13. AD09234 (8/09) For MCLE, CPE and Financial Professional Use Only. Not for Distribution to the General Public. Social Security: When to Start  Rethink conventional wisdom: Age 62  Permanent reduction of nearly 25%  Increased longevity  Normal retirement age = 100% of benefit  Age 70: nearly 130%  Determine the break even age

14. AD09234 (8/09) For MCLE, CPE and Financial Professional Use Only. Not for Distribution to the General Public. Social Security: When to Start  What if your clients have already started taking benefits? SSA Form 521: “Request for Withdrawal of Application” Interest free repayment  Possible Strategy: –Elect to take their benefits at age 62 –Invest those benefits –Repay the benefits at age 70  Possible Risks: –Dying early –Money invested is not available –Possible changes in the law

15. AD09234 (8/09) For MCLE, CPE and Financial Professional Use Only. Not for Distribution to the General Public. Social Security: Working While Receiving Benefits  Before Normal Retirement Age 2009 Limit: $14,160 Loss of $1 in benefit for every $2 over the limit Triggered only by earned income 62 Normal Retirement Age

16. AD09234 (8/09) For MCLE, CPE and Financial Professional Use Only. Not for Distribution to the General Public. Social Security: Working While Receiving Benefits  Before Normal Retirement Age Bob is 63 and will semi-retire in 2009. His normal retirement age (NRA) is 66. He elects to receive benefits immediately. His monthly benefit is $1,600 or $19,200 annually. He will earn $25,000 in wages during 2009 and will have $10,000 in investment income.

17. AD09234 (8/09) For MCLE, CPE and Financial Professional Use Only. Not for Distribution to the General Public. Social Security: Working While Receiving Benefits  Before Normal Retirement Age ________ $25,000 -$14,160 $10,840 ÷2 $5,420 Earned Income Earnings Limit Amount Over Limit $1 Benefit Reduction for Each $2 Over Limit Reduction in annual benefit ________

18. AD09234 (8/09) For MCLE, CPE and Financial Professional Use Only. Not for Distribution to the General Public. Social Security: Working While Receiving Benefits  Before Normal Retirement Age The Good News!  Benefits are not lost, only deferred. At normal retirement age, Bob’s benefits will be recalculated to recoup lost benefits prior to age 66. The Bottom Line.  If you want or need income, early benefits = OK!

19. AD09234 (8/09) For MCLE, CPE and Financial Professional Use Only. Not for Distribution to the General Public. Social Security: Increasing Benefits  Maximizing Benefits for Clients and Spouse The Challenge:  Women live 5 to 6 years longer than men 1  The majority of men are two or more years older than their wives 1  The majority of women ages 75-84 are widows 2 ¹ Source: US Bureau of Census, 2000 ² Source: American Community Survey, 2006

20. AD09234 (8/09) For MCLE, CPE and Financial Professional Use Only. Not for Distribution to the General Public. What is a Variable Annuity?  A variable deferred annuity is a long-term financial product designed for retirement. Simply stated, an annuity is a contract between you and an insurance company that lets you pursue the accumulation of assets through asset allocation and customized investment portfolios, and an optional guarantee. Asset allocation helps spread your investment dollars across different asset classes, to help manage risk and enhance returns. Through customization you choose according to your risk tolerance. The goal is to select a mix of asset classes that will help you meet your long-term investment goals. Your portfolio is professional managed and closely monitored, including your portfolio’s performance and remains consistent with your investment goals. Ultimately, you pay an insurance company and in turn, the company agrees to provide lifetime income or a lump sum from your accumulated assets.

21. AD09234 (8/09) For MCLE, CPE and Financial Professional Use Only. Not for Distribution to the General Public. What You Should Know about Variable Annuities  There are fees and charges associated with variable annuities, which include mortality and expense risk charges, administrative fees, investment management fees, withdrawal charges and charges for optional benefits. In addition, annuity contracts have exclusions and limitations.  Withdrawals are subject to normal income tax treatment. Early withdrawals may be subject to withdrawal charges, and, if taken prior to age 59½, a 10% federal income tax penalty may apply.  Withdrawals will reduce the death benefit, living benefits and cash surrender value. Withdrawals will come from any gain in the contract first for federal income tax purposes.  Variable annuities are subject to investment risks, including the possible loss of principal invested.  Guarantees described herein are subject to the claims-paying ability of the issuing company and do not apply to the subaccount investment options.

22. AD09234 (8/09) For MCLE, CPE and Financial Professional Use Only. Not for Distribution to the General Public. What is a Guaranteed Minimum Income Benefit? It is an annuity feature available for an additional cost that can provide the annuity owner with a predictable future income* regardless of investment performance. *Generally 4-6% of benefit base (The benefit base generally starts as the initial account value. As the contract allows, if the Benefit Base can roll up the allotted percentage (4-6%) on each contract anniversary date if elected by the contract owner. ) Why use a Guaranteed Minimum Income Benefit? It may provide some assurance that Tom will be able to make the withdrawals and withstand a potentially negative market performance. Guaranteed Minimum Income Benefits

23. AD09234 (8/09) For MCLE, CPE and Financial Professional Use Only. Not for Distribution to the General Public. Social Security: Increasing Benefits  Maximizing Benefits for Client and Spouse Leveraging A Wrinkle:  Maximizing income and survivorship benefits when both spouses are covered under Social Security  A husband, at normal retirement age, can elect to receive 50% of his wife’s benefit and defer taking his own – he gets higher income benefit and wife gets higher survivorship benefit

24. AD09234 (8/09) For MCLE, CPE and Financial Professional Use Only. Not for Distribution to the General Public. Social Security: Strategy for Increasing Benefits  Leveraging A Wrinkle: Maximizing income and survivorship benefits when both spouses are covered under Social Security A husband, at normal retirement age, can elect to receive 50% of his wife’s benefit and defer taking his own – he gets higher income benefit and wife gets higher survivorship benefit Example: Sally, 62 gets a reduced benefit of $1,200 (if she waited until 65 she would get $1,500) Bob, 66, gets $2,000 if starts now Bob elects 50% of Sally’s & gets $750 Bob is “short” $15,000 a year $300,000 in VA @ 5% = $15,000 Bob @ 70 gets approx $2,600 Bob’s break-even age is 80-81 Sally’s survivorship benefit based on Bob’s higher benefit from waiting Maximizing Benefits for Client and Spouse

25. AD09234 (8/09) For MCLE, CPE and Financial Professional Use Only. Not for Distribution to the General Public. Social Security: Increasing Benefits  Example: Sally, age 57, and Bob, age 61, are married and plan on taking Social Security in 5 years: Bob decides to take 50% of Sally’s benefit and defer taking his own until age 70 Bob is “short” $15,000 a year  In order to replace the $15,000/yr, he decides to invest $250,000 in a VA @ 5%* †  At age 70, Bob begins taking his full benefit, approximately $2,600  His break-even age is 79-80  Sally’s survivorship benefit will be much higher because it’s based on the higher benefit received by Bob at age 70 $750 50% of Sally’s normal retirement age benefit Sally Age 62 Bob Age 66 $1,200 Benefit (reduced) $2,000 Benefit at age 66 OR † All guarantees including optional benefits are based on the claims-paying ability of the issuing insurance company and do not apply to the subaccount investment options. *Assumes VA grows to $300,000 in 5 years, which is not guaranteed.

26. AD09234 (8/09) For MCLE, CPE and Financial Professional Use Only. Not for Distribution to the General Public. Social Security Taxation  Will my Social Security benefit be taxable? If Provisional Income is over base amount, a portion of your benefit will be taxable You have the ability to reposition assets to reduce tax liability

27. AD09234 (8/09) For MCLE, CPE and Financial Professional Use Only. Not for Distribution to the General Public. Social Security Taxation  Provisional Income Calculation Provisional Income MAGI + Tax-Exempt Income + ½ Social Security Benefits

28. AD09234 (8/09) For MCLE, CPE and Financial Professional Use Only. Not for Distribution to the General Public. Social Security Taxation Filing Status Base Amount Additional Amount Single$25,000$34,000 Qualifying Widower$25,000$34,000 Married/Jointly$32,000$44,000

29. AD09234 (8/09) For MCLE, CPE and Financial Professional Use Only. Not for Distribution to the General Public. Social Security Taxation  Opportunity to reposition assets  Can reposition unproductive taxable assets  Tax-deferred investments not part of provisional income calculation

30. AD09234 (8/09) For MCLE, CPE and Financial Professional Use Only. Not for Distribution to the General Public. Important Point About Medicare  If clients elect to delay Social Security benefits you still need to file for Medicare at 65  Medicare is a federal health insurance program  There is no early option for Medicare

31. AD09234 (8/09) For MCLE, CPE and Financial Professional Use Only. Not for Distribution to the General Public. Social Security: Working With Your Clients  You can’t look at Social Security in a vacuum  You need a comprehensive retirement income plan  You need to coordinate and integrate: Social Security Pensions Personal Savings Investments Taxes Succession and Estate Planning

32. AD09234 (8/09) For MCLE, CPE and Financial Professional Use Only. Not for Distribution to the General Public. Social Security: Summary  Understanding Value  Solvency  When to Begin Taking Benefits  Working and Receiving Benefits  Maximizing Benefits

33. AD09234 (8/09) For MCLE, CPE and Financial Professional Use Only. Not for Distribution to the General Public. Important Information A deferred variable annuity is a long-term financial product designed for retirement purposes. In essence an annuity is a contractual agreement in which payment(s) are made to an insurance company, which agrees to pay out an income or a lump sum amount at a later date. Typically, variable annuities have mortality and expense charges, account fees, investment management fees, administrative fees and charges for special contract features. In addition, annuity contracts have exclusions and limitations. Early withdrawals may be subject to surrender charges. All guarantees including optional benefits are based on the claims-paying ability of the issuing insurance company and do not apply to the subaccount investment options. Variable annuities are sold by prospectus only which contains more complete information, including investment objectives, risks, charges and expenses. Investors should read the prospectus carefully before investing or sending money. Amounts in the annuity’s variable investment options are subject to fluctuation in value and market risk, including loss of principal. Withdrawals may be taxable as ordinary income and, if taken prior to age 59 ½, an additional 10% federal income tax penalty may apply. Withdrawals reduce annuity contract benefits and values. If you are purchasing an annuity contract as an Individual Retirement Annuity (IRA) or Tax Sheltered Annuity (TSA), or to fund an employer retirement plan (QP or Qualified Plan), you should be aware that such annuities do not provide tax deferral benefits beyond those already provided by the Internal Revenue Code. Before purchasing one of these annuities, you should consider whether its features and benefits beyond tax deferral meet your needs and goals. You may also want to consider the relative features, benefits and costs of these annuities with any other investment that you may use in connection with your retirement plan or arrangement. Please be advised that this presentation is not intended as legal or tax advice. Accordingly, any tax information provided in this document is not intended or written to be used, and cannot be used by any taxpayer for the purpose of avoiding penalties that may be imposed on the taxpayer. The tax information was written to support the promotion or marketing of the transaction(s) or matter(s) addressed, and clients should seek advice based on their particular circumstances from an independent tax advisor. Representatives of AXA Distributors, LLC do not act as investment advisors to your variable annuity under the terms of your contract, unless there is a separate client agreement between you specifically assuming that role. These representatives are not responsible for giving ongoing investment advice, including but not limited to reallocation and rebalancing, in the absence of a separate agreement. Variable annuity products are issued by AXA Equitable Life Insurance Company, and are co-distributed by AXA Advisors, LLC, and AXA Distributors, LLC located at 1290 Avenue of the Americas, New York, NY, 10104. Variable Annuities: Are Not Deposits of Any Bank  Are Not FDIC Insured  Are Not Insured by Any Federal Government Agency  Are Not Bank Guaranteed  May Go Down in Value. ML09-5091A