Deciding when to take Social Security is an important decision.
Planning for retirement is important.
Many people know where they would like to live or how they would like to spend their time.
While these are important, financial planning is key.
According to a recent Kiplinger article “Why Wealthy People May Want to Take Social Security at 62,” you should consider your own unique circumstances when choosing an age to begin taking Social Security benefits.
For example, you will receive the full benefit amount.
If you delay past full retirement age, the benefit could grow 8 percent up to age 70.
Although this can be sound advice for many, it is not always a perfect fit.
When might this be the case?
If you are wealthy and retire at age , you may want to take Social Security rather than wait until full retirement age.
Tapping into your pretax retirement accounts may be unwise.
The monthly distribution rate needed to maintain your budget would place you in a higher tax bracket.
If you are wealthy and take Social Security at age 62 instead of tapping into your retirement savings your distributions will be far less.
This will allow your money in your retirement accounts to continue to grow with compounded interest over 20 to 30 years of retirement.
Taxes paid on the Social Security while in the lower tax bracket would be minimal.
Selecting the best retirement strategy is no small task.
You should work with an experienced financial planner and experienced estate planning attorney to create a plan to best meet your specific circumstances.
Reference: Kiplinger (September 7, 2018) “Why Wealthy People May Want to Take Social Security at 62”