Another Good Reason to Delay Social Security Benefits

I agree with Jim Blankenship’s premise in this article.



As you likely know from reading many of my articles on the subject, I have long advocated the concept of delaying your Social Security benefit as long as possible. This shouldn’t be a surprise – many financial advisors have espoused this concept for maximizing retirement income.

Lately there has been a white paper making the rounds, from a Prudential veep, Mr. James Mahaney, entitled Innovative Strategies to Help Maximize Social Security Benefits.  The white paper supports the very theme that I wrote about a couple of years ago in the post Should I Use IRA Funds or Social Security at Age 62?.  This paper seems to have struck a chord with a lot of folks, as I’ve received it no less than a dozen times from various folks wondering if the strategies Mr. Mahaney writes about would be useful to them.

via Another Good Reason to Delay Social Security Benefits – Getting Your Financial Ducks In A Row.


One thought on “Another Good Reason to Delay Social Security Benefits

  1. (Replying a couple of years later, unfortunately…..) What happens in this calculation if one has significant IRA assets? In the example given in Jim Blankenship’s article, IRA distributions are constant at the point when SS payments start. But, the reality is that at age 70-1/2, if the retiree has significant IRA assets, the key driver is no longer the “pre-tax income requirement of $75,000 per year” that the retiree needs, but scenario is now driven by the IRA required minimum distributions that kick in (possibly at the same time as the age-70 distributions from social security start if those are delayed until then). The retiree is then receiving significantly more in combined retirement income than is needed, and is therefore paying way more in federal taxes than in the original example given. Where is that “sweet spot” where taking IRA distributions earlier (& RMDs later) and SS distributions later is more beneficial than taking SS distributions earlier and IRA RMDs later? I’ll take a look at those white papers mentioned to see if they address they scenario I mentioned.

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