Boost Social Security Checks By Tapping IRAs Early, Suggests Study

According to a recently published study, Social Security Payments could be inflated by withdrawing early from workplace automatic individual accounts or auto-IRAs.

By beginning auto-IRA payments from ages 62 and 66, you could delay claiming Social Security until 67 to collect Social Security benefits fully, according to report on the Pew Charitable Trust published yesterday.

The increase from utilizing auto-IRAs to delay Social Security benefit collection can be “significant,” the report noted.

“The worker who starts collecting at age 62 would receive $700 a month, compared with $1,000 for the worker who waits until age 67,” the study explained.

The Pew Charitable Trust details that every year past age 62 that someone delays Social Security increases their monthly check by about 8% until age 67.

“Delaying the start of these payments can be especially advantageous to married couples, because when the recipient dies, the surviving spouse continues to receive the higher of the two spouses’ benefits whether or not he or she was the primary earner,” Pew stated.

Keep in mind; this strategy isn’t meant for just anyone:

“Some may be unemployed or underemployed, and need the income; others may face the possibility of dying early, and therefore might not benefit from delaying the start of Social Security,” said Pew.

The recent report also explained that some could need to collect Social Security before the normal retirement age due to health complications that aren’t serious enough to qualify for Social Security Disability Insurance.

 

 

https://www.forbes.com/sites/tedknutson/2018/03/22/social-security-payments-can-be-boosted-by-tapping-auto-iras-early-says-study/#364a17c233d4

Overview of Social Security & Applying for Benefits

According to ssa.gov, Social Security was created in 1935 by President Roosevelt as a federal program. Before the enactment of social security, each state and local government was responsible for the welfare of the elderly. In the 1920s and 1930s, the economy had shifted due to industrialization and war; many people were unemployed and poverty-stricken. The Great Depression era was hard for nearly everyone, but the people who were hit the hardest were the elderly and disabled due to inability to work. The Social Security Board was created to help enroll the elderly into the program to receive payments. The Social Security entity did not only extend eligibility to the elderly but to the unemployed, blind or disabled, and children.

Applying for social security benefits is done online at ssa.gov or in person at a local Social Security office. Applications included are for retirement, Medicare, and social security disability benefits. If unable to apply online, call 1-800-772-1213 (TTY 1-800-325-0778). The person must be a United States citizen to apply and meet all criteria to receive benefits. The original birth certificate is needed or a certified copy of the original. Proof of citizenship is needed if not born in the United States. Proof of income from the previous year is needed. Documents to prove income include last year’s employment tax return or a copy of W-2 forms.

Retirement or spouse’s retirement has an age requirement of 61 years and 9 months. When an applicant is 65 years old and requests benefits, Medicare is automatically included in the benefits. Medicare is health insurance created for the elderly in 1966 under the Social Security act created by President Roosevelt. The Centers for Medicare and Medicaid Services oversees the healthcare benefits given to Medicaid patients.

In conclusion, Social Security was created to help people in need of assistance in the United States. It was created in response to the Great Depression and enacted under President Roosevelt in 1935. People over 65, those that are disabled may apply online, by visiting socialsecurityofficesnearme.com, or in person at the local office the program for assistance. More information can be found in the links below.

References & Resources:
https://www.ssa.gov/planners/retire/applying5.html 
https://www.ssa.gov/history/briefhistory3.html
https://postallocationsnearme.com/