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When people plan and invest for retirement, the decision of when to begin taking Social Security benefits eventually comes up. Social Security is an important source of retirement income

According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product

for many individuals and, therefore, the decision of when to take these benefits can make a big impact on retirement income.

A retired worker who is fully insured can elect to start recei

; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.

Examples of combination products may in

ving benefits at any time between age 62 and 65 (or even later). Benefits can start as early as 62, but if you so elect they are permanently reduced by 20%. Here is where the question ar

lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.

ises. Is it better to start taking checks at a reduced amount or wait until Normal Retirement Age and receive full benefits? Before addressing the inherent problems with this empirical q

here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe

uestion, let's look at some of the factors and considerations.

The early bird who decides to get the worm first gets three years' worth of checks -36 payments- that the sleeping bird will

d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.

Combination pro

never see. Thus, it will take some time for the total benefits of the person who waits until age 65 to catch up to those of the early collector. Further, for those born after 1937, Norm

ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc

al Retirement Age is being extended. Normal Retirement Age is currently age 65, yet due to the Social Security amendments, full benefit age will be raised gradually in two stages until ev

easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi

entually reaching 67 in 2027. Thus, the early bird will receive even more checks than the retiree who bides his time for full benefits.

If the early bird also did not need the benefit in

nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically

come and chose to invest instead of spending the checks, the investment income would partially offset the reduced yearly benefit as well as extend the catch-up period for the age 65 collec

and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ

tor. Sounds like most people would opt to be an early bird.

There are other factors to consider (as always). Working an extra three years will probably increase the patient retiree's be

ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi

nefits. This is so because more earnings will be credited toward the Social Security account. Chances are that old low-earning years will be replaced in the benefit equation with a curre

ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.

Following aspects would a

nt high credit year. These higher benefits will then shrink the catch-up period.

Delaying retirement benefits beyond 65 until age 70 will also increase the size of the benefit due to a c

dd to the challenges in developing combination products:

Which markets to tap where the combination products can do fairly well?
Which combination prod

redit provided by the Social Security Administration for such patience. Further, for those born after 1937 who choose to begin receiving benefits at age 62, the reduction-in-benefits pena

cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin

lty is further stiffened from 20% to an eventual 30% in 2022. The hare will feel the tortoise closing even quicker.

Taxation of benefits may also enter the picture. Poor timing of Socia

tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen

l Security and other income may result in a good portion of early benefits being subject to inclusion in income and painfully taxed. On the other hand, a lower age 62 benefit may mean tha

t?

As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel

t the taxpayer will not meet the "combined income" threshold for benefits inclusion.

Empirical studies have been done which generally arrive at the same conclusion. Early bird collectors

ping new procedures for reviewing their safety, efficacy and quality.

Professional from academic institutions, pharmaceutical industries, health care indust

are ahead of the game for about 12 to 15 years and then are left behind the higher benefit collector. Thus, where a person is in good health and foresees another 10 + years of retirement

y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products

life, it is probably better to defer taking benefits until normal retirement age.

Of course, a universal rule for when to take benefits is impractical. Depending upon an individual's ci

.

As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de

rcumstances, it might make more sense to begin taking benefits as soon as possible regardless of the net economic benefit in the future. This brief article is no substitute for a careful

elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

Companies that provide selfless information through particip

consideration of your unique personal situation. Before making any significant retirement planning or tax strategy, consult your financial planner, attorney or tax advisor, as appropriate

tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products

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