“Every year, Americans give up thousand of dollars of income by filing for Social Security benefits too early.”
A study issued this month, looked at tax data for Americans born in 1940, and data showed that many people file Social Security to early. “It found that about a third of people who file for Social Security benefits had enough assets in individual retirement accounts (IRAs) to make up for two years of Social Security checks.”
Why are Americans doing this? Some may want to leave their IRAs to their heirs. You can’t leave your Social Security benefits to your children or to charity after you’re gone, while others are concerned about health and longevity.
“This question of health and longevity is the key to getting the Social Security filing question right and if you really think you might die in your 60s, it might make sense to settle for a smaller but earlier Social Security check.”
“Even if you feel great, you might not want to blow your whole IRA now to get the highest possible Social Security payoff over your lifetime.” “The key is to be strategic to filing for Social Security when you stop working, to ensure your spouse is left with adequate income.”