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Be64
Level 1

Draw on 401k first before Social Security if I retire at 62 yrs old

I plan to retire at 62 yrs old. Would it be better for me to withdraw from my 401K first and hold off on signing up for social security until 65 or 67 to receive a higher social security benefit?

5 Replies
Opus 17
Level 15

Draw on 401k first before Social Security if I retire at 62 yrs old

You need to see a financial planner.

 

Checking my own benefits just now, if I claimed at 62 instead of full retirement age of 67, I would make more money from the government in the long run if I died by age 73.  If I lived longer than 73, I make more money from social security if I delay and take the larger benefit.  However, in your case that would mean depleting your retirement account faster in order to qualify for a larger social security benefit.  Maybe you have a chronic illness or a very short-lived family tree, or maybe you are in the best of health and all your relatives live to 100. 

You would need an expert to help you review the options as they apply to your particular situation. 

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
Carapungo
Level 2

Draw on 401k first before Social Security if I retire at 62 yrs old

I just turned 63 and decided to retire and start getting my distribution check from my IRA. I will not fill out for SS benefits until I turn 67, mainly because I want to get the maximum benefit for my wife when she retires at 62, so that she can get 50% of my retirement check. Besides this, if you have enough money in your 401k or IRA, let's say, at least $500k , then you should retire now, get a $5k monthly check and wait until you turn 67 to get benefits. Hope it helps.

Opus 17
Level 15

Draw on 401k first before Social Security if I retire at 62 yrs old


@Carapungo wrote:

I just turned 63 and decided to retire and start getting my distribution check from my IRA. I will not fill out for SS benefits until I turn 67, mainly because I want to get the maximum benefit for my wife when she retires at 62, so that she can get 50% of my retirement check. Besides this, if you have enough money in your 401k or IRA, let's say, at least $500k , then you should retire now, get a $5k monthly check and wait until you turn 67 to get benefits. Hope it helps.


If your spouse retires before her own full retirement age, her benefit will be reduced, she won't get 50% of your full retirement amount.

 

Likewise, if your spouse retires at her full retirement age, she would get half your "full retirement amount" even if you retired early and get less your full retirement account.

https://www.ssa.gov/benefits/retirement/planner/applying7.html

 

I suggest you review your plan with a financial planner. 

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
Be64
Level 1

Draw on 401k first before Social Security if I retire at 62 yrs old

Thank you for the feedback. I'll go ahead and reach out to a financial planner so I can get my arms around this.

Carapungo
Level 2

Draw on 401k first before Social Security if I retire at 62 yrs old

so what did you decide?

 

On the other hand, I changed my mind, I will turn 64 in March, and will fill out for SS benefits. 

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