4 Money Moves For New Retirees Hoping To Delay Taking Social Security
Written by
Josephine Nesbit
Edited by
Angela Corry
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
Delaying your Social Security retirement benefits past your full retirement age could result in a higher monthly payment and a longer total lifetime benefit.
According to the Social Security Administration, delaying Social Security past your FRA increases your benefit amount by 8% each year until age 70.
But if you’re already retired, you can still find ways to fill that income gap and delay your Social Security checks. Here’s how.
Tap Other Accounts
If you have other accounts — like a 401(k), IRA or savings account — you could dip into these accounts as you wait to start Social Security. This is also known as a Social Security bridge where you replace your monthly Social Security payment using retirement savings.
You can typically tap retirement accounts without penalty when you’re 59 ½ years old or older, or if you qualify for certain exceptions, according to the IRS. Remember that if you contributed pre-tax dollars to your accounts, your deductible contributions and earnings will be taxed as ordinary income.
Work Part-Time or Get a Side Gig
If you’re still in good health, consider working part-time or picking up a side gig to cover your monthly household expenses or to maintain the same lifestyle.Â
For example, GOBankingRates previously spoke to Dan W., a tasker for TaskRabbit, about how he was able to monetize his skills to charge around $47 per hour and earn thousands per year in retirement.
Cut Unnecessary Expenses
You can also stretch your savings by lowering your cost of living. One of the best ways to lower housing costs is to downsize and buy a less expensive home in a more affordable city.
Other options include paying off debt and cutting back on unnecessary expenses, such as subscriptions to streaming services or dining out at restaurants.
Consider Your Spouse
If your spouse is also eligible for Social Security payments, find out who has the larger benefit. By taking the smaller benefit and delaying the larger benefit until age 70, the surviving spouse will receive the largest possible benefit for life.
More From GOBankingRates
