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.