You bet. Total income affects how much of Social Security benefits are taxed. Asset distributions needed to pay expenses, and the nature of those assets, fluctuate. The percent of benefits taxed is seldom a fixed amount. It needs to be calculated annually.
At age 70½ RMDs are required from qualified plans and are taxable. They also affect the MAGI and could trigger increased taxation of Social Security benefits.
If Social Security is started prior to full retirement age, earned income could result in benefits being withheld until full retirement age. That affects income available for cash flow and should be considered when determining Social Security filing ages.
Just found out what this software can do...so excited! The tax piece is invaluable in helping people understand the impact of taxes on their social security benefits." Kaye Taylor Senior Vice President - Marketing Pacific Financial Advisors Inc.
Income is accumulated, asset appreciation calculated, Required Minimum Distributions calculated and withdrawn, expenses paid, assets used as needed, taxes calculated and paid, and Social Security benefits adjusted as required. For every year in the projection. And, for every possible Social Security filing age and method.
How about working a year or two longer? Can you get a better rate of return? What if you spend a little less in retirement? Just tweak the sliders and see the result instantly (well almost instantly, there are a lot of calculations behind the scenes).