The silly way you can end up losing out on social security
The silly way you can end up losing out on social security

The silly way you can end up losing out on social security

Social security is an important source of income for many seniors. And chances are, you will end up relying on your benefits when your time in the workforce is over.

Therefore, you can be motivated to win the highest possible monthly benefit. And there are steps you can take to achieve this goal, such as avoiding an early application and increasing your earnings throughout your career to set you up with a more generous benefit.

But a stupid mistake on your part can result in a lower Social Security benefit for life. And the worst? It’s a blunder that’s really easy to avoid.

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Do your leg work

Every year, the Social Security Administration (SSA) issues workers an earnings statement that contains lots of key information. First, it will include an estimate of your future monthly social security benefit. Furthermore, it will summarize your annual salary, which counts for social security purposes.

If you are 60 years of age or older, you will receive your annual earnings statement by mail. Otherwise, you can create an account on SSA’s website and access yours there. But no matter what, it’s important to review this information and make sure it’s accurate. If you do not, you may end up shorting yourself on benefits.

How? Let’s imagine that your income is severely underreported for a year, but you do not detect that error. SSA will then use the wrong information to calculate your monthly pension benefit – and you may be stuck with a lower benefit than what you are actually entitled to.

This is why it pays to make a note in your calendar to check your social security earnings once a year. The quick, easy task can help you avoid what could end up being a significant hit for your benefits.

Other ways to avoid losing on social security

Checking your earnings statements each year is not the only step you can take to avoid lower benefits. You can also make a point of not claiming social security before full retirement ageeven if you are allowed to apply for benefits as early as age 62.

You can also make sure that you put a full 35 years into the workforce. This is because your benefits are based on your 35 most profitable years of earning, and if you do not work 35 years, you will have zero income included for each year you did not make money. Similarly, if you are not content with a low-paying job, but rather push yourself to build skills to grab a better one, you can avoid getting stuck with a monthly benefit that just does not reduce it once retirement rolls around. .

But perhaps the easiest way to avoid a hit on your services is by checking your earnings statement each year. It is also important to do this because the closer to retirement you get, the more accurate your monthly benefit estimate is likely to be. And it could be important information that helps with your pension planning.

The $ 18,984 Social Security bonus completely overlooks most retirees

If you are like most Americans, you are a few years (or more) behind with your retirement savings. But a handful of little-known “social security secrets” could help secure a boost in your retirement income. For example: a single trick could pay you as much as $ 18,984 more … every year! Once you’ve learned how to maximize your social security benefits, we think you can safely retire with the peace of mind we all seek. Just click here to find out how you can learn more about these strategies.

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