Sep
25
Outlive the Odds
Timing Social Security and IRA Distributions
Retirees often claim Social Security before reaching full retirement age and leave tax-deferred IRAs untouched until age 70½, when they must start taking required minimum distributions (RMDs). In fact, about 75% of current Social Security recipients claimed early benefits before age 66.1
Some retired couples in Charleston SC, Charlotte NC, Miami FL and Atlanta GA might be better off with the opposite approach: taking IRA withdrawals in their 60s in order to delay Social Security until age 70, when benefits would reach their maximum payout.
Although you may not be counting on Social Security to survive, the lifetime benefits you receive could add up to a meaningful percentage of your retirement income.
Retirees often claim Social Security before reaching full retirement age and leave tax-deferred IRAs untouched until age 70½, when they must start taking required minimum distributions (RMDs). In fact, about 75% of current Social Security recipients claimed early benefits before age 66.1
Some retired couples in Charleston SC, Charlotte NC, Miami FL and Atlanta GA might be better off with the opposite approach: taking IRA withdrawals in their 60s in order to delay Social Security until age 70, when benefits would reach their maximum payout.
Although you may not be counting on Social Security to survive, the lifetime benefits you receive could add up to a meaningful percentage of your retirement income.
