Should you claim Social Security early?
Let’s start with health. Generally – and that is the operative word – the longer someone lives, the better off they’ll be drawing down their IRA leaving their Social Security in order to max out benefits. Not only do Social Security benefits increase significantly by delaying – and they’ll still get the cost-of-living adjustments, too – but, by drawing down IRA assets first, later required minimum distributions (RMDs) will be lower. It’s worth remembering RMDs are recognized as taxable income which is one factor in the calculation of any taxes on total income, Social Security, as well as impacting Medicare Part B premiums.
Each person should have a Social Security analysis created as part of a comprehensive financial plan. As you can see, there are a number of moving parts and each can impact other issues.