Spend the IRA First, Claim Social Security Last: The Order That Adds Six Figures for $500,000 Retirees

18 hours ago 4

David Beren

Sun, July 19, 2026 astatine 2:30 PM CDT 5 min read

Quick Read

Retirees with $500,000 successful a accepted IRA who hold Social Security to 70 tin cod astir $259,200 much implicit 20 years than those who assertion astatine 62.
Claiming Social Security astatine 62 permanently cuts benefits by up to 30%, portion waiting until 70 grows them to $2,480 versus $1,400 monthly connected a $2,000 basal benefit.
Drawing down the IRA earlier Social Security begins fills bare debased taxation brackets and shrinks aboriginal required minimum distributions, which commencement astatine 73.
Are you ahead, oregon down connected retirement? SmartAsset's escaped instrumentality tin lucifer you with a fiscal advisor successful minutes to assistance you reply that today. Each advisor has been cautiously vetted, and indispensable enactment successful your champion interests. Don't discarded different minute; learn much here.

Retirees who scope their aboriginal 60s with astir $500,000 successful a accepted IRA and a Social Security payment connected the mode look a sequencing determination that softly determines whether their portfolio lasts. The prime is whether to permission the IRA unsocial and commencement Social Security astatine 62, oregon walk the IRA archetypal and fto the Social Security payment turn until 70. The dollar quality implicit a emblematic status runs good into six figures.

A smiling African American aged mates is seated astatine a woody table, some looking down astatine fiscal documents held by the woman. The man, wearing a bluish button-up shirt, holds a pen, and the woman, successful a colorful patterned shirt, smiles brightly. Reading glasses and a smartphone are connected the array successful beforehand of them. The inheritance shows a modern location interior with ample windows, greenish plants, and bookshelves.

What the Claiming Age Actually Does to the Check

The Social Security payment look is fixed by 2 variables: a wage-indexed mean of the 35 highest-earning years, and the property astatine which the retiree claims. Claiming astatine 62 permanently reduces the payment by up to 30% comparative to the afloat status property amount. Waiting past afloat status property adds astir 8% per twelvemonth until property 70, which produces a astir 24% summation for idiosyncratic whose afloat status property is 67. Those adjustments are locked successful for life, and each twelvemonth the outgo of surviving accommodation compounds connected the larger number. The 2026 COLA came successful astatine 2.8%.

_________________________________

What's Your Number...?

Here's a question astir radical 5y from status can't answer: astatine your existent savings rate, however overmuch bash you need, and however agelong volition it actually last? A bully advisor tin enactment a day connected that successful a azygous meeting. SmartAsset's escaped quiz matches you with up to 3 fiduciary advisors serving your area, truthful you tin get YOUR status fig present (sponsor)

__________________________________________

For a idiosyncratic whose afloat status property payment is $2,000 per month, claiming astatine 62 yields astir $1,400 per month. Waiting until 70 raises the aforesaid underlying payment to astir $2,480. That is simply a monthly spread of astir $1,080, earlier immoderate COLA is applied.