Auto-IRAs Can Help Retirees Delay Claiming Social Security - AMAC & Pew Research
This well researched issue brief from The Pew Charitable Trusts provides a viable strategy for those seeking to maximize the amount they receive each from Social Security for the rest of their lives. Most know that each month’s delay increases the amount one will receive. To that end, this piece explains how individual retirement accounts (IRAs) with automatic enrollment, known as auto-IRAs or Secure Choice accounts, can allow retirees to use such accounts to delay claiming Social Security benefits, thereby boosting their monthly and annual payment amounts for life. Pew found that workers who invested 6% of their wages in auto-IRAs could delay claiming Social Security benefits for a year or longer. This deferral has the potential to increase their monthly and annual benefits by 7%-8% a year for life.
In other words, retiring from the workforce need not necessarily coincide immediately with the start of claiming Social Security benefits. The two decisions can be quite independent of one another. Full article here.
The AMAC Foundation offers a free-to-the-public advisory service to all folks ageing into–or already in–Social Security. This service provides guidance in understanding the complexities of Social Security and the myriad rules and regulations associated with the process for claiming benefits, with NSSA-Certified Social Security Advisors available via email or telephone to discuss options. Learn more about this service via the Foundation’s website.