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The Wrong Turns of Social Security

The Wrong Turns of Social Security

May 15, 2024

These mistakes can lower your Social Security benefits
by hundreds of dollars
.  

 

Navigating the complexities of Social Security can be daunting, and as a financial advisor, I've seen firsthand the common mistakes people make when planning for their retirement benefits. While not always unavoidable, these mistakes can be lessened and adjusted to ensure you can maximize your future Social Security benefits. Here are a few to be aware of:

Timing of Benefits: One of the most prevalent missteps is underestimating the importance of timing. Many individuals claim Social Security benefits as soon as they become eligible at age 62 without considering the impact of early claiming on their overall benefits. By claiming early, retirees may receive reduced monthly payments for the rest of their lives, potentially leaving significant money on the table in the long run.

Big Picture: Failing to consider the broader financial implications of Social Security decisions is another major mistake many make. It's crucial to weigh factors such as other sources of income, tax implications, and overall retirement goals when determining the optimal claiming strategy.

Lowered Earnings: Many individuals overlook maximizing their earnings history. Social Security benefits are calculated based on a person's highest 35 years of earnings, so working fewer years or earning less during those years can negatively impact benefit amounts.

Navigating Alone: Social Security, while a simple purpose, is a very complex program with many ins and outs to determine how Social Security benefits are calculated. It's challenging to navigate without the level of understanding to consider all factors that could determine individual benefits.

Remember, making informed decisions about Social Security can significantly impact your retirement income. By avoiding common mistakes through professional guidance, you can maximize your Social Security benefits and enjoy a financially secure retirement. Reach out to set up a time to discuss your benefits and Social Security Plan with us today.

Together, we can develop a comprehensive retirement strategy that maximizes Social Security benefits while optimizing overall financial security.