No. of Recommendations: 3
As of 2019, the people who took SS at age 62 left a collective $3.4 Trillion on the table. And we know this for a fact because the SS Administration has a record of when you started and when you died and can calculate it the penny.
This is a fairly definite number which I think is false accuracy. How much is left on the table depends on several items including:
1. What is the tax rate on the combined income from RMD plus social security?
2. Does combined income push you into an area with higher capital gains tax rate?
3. Does combined income push you into the medicare bracket where you have to pay substantially more?
I my case, most social security payment is tax fee before I start taking RMD. Then I have a high tax rate and medicare penalty.
It is not black and white and the $3.4 million left on the table should include the assumptions about tax rates, assumptions about substantially higher tax rate when a spouse dies, etc..
Aussi
