The 3 Biggest Social Security Mistakes to Avoid in 2024. Navigating the intricacies of Social Security goes beyond the simple process of filing for and receiving benefits. Mistakes in this process can have significant financial consequences. In this guide, we’ll address three common Social Security mistakes to avoid in 2024.
Claiming Retirement Benefits Too Early
One prevalent mistake is claiming retirement benefits prematurely. While you can start collecting benefits at age 62, doing so comes with a steep cost – a 30% reduction in Social Security benefits. Waiting until your full retirement age (67 for those born in 1960 or later) ensures you receive your full benefits. Additionally, delaying until age 70 can increase your benefits by 24%. Patience in this matter can significantly impact your financial well-being.
Failing to Coordinate Spouse’s Benefits
For married couples, deciding when to claim Social Security benefits can be complex. It’s crucial to determine which spouse has the higher retirement benefits. Consulting the SSA.gov website for estimated benefits is a good starting point. Ideally, the higher-earning spouse should wait until their full retirement age to begin receiving benefits. However, in cases where one spouse’s benefit is significantly higher, applying for spousal benefits may be a strategic move. Coordinating benefits between spouses is a critical consideration that may require the expertise of a financial advisor.
Closely Checking Your Social Security Earnings Record and Payments
Your earnings record plays a crucial role in calculating Social Security benefits. It is essential to verify the accuracy of your earnings record. If you suspect an error, you can use the “Request for Correction of Earnings Record” form (SSA-7008) to address it. Additionally, it’s important to scrutinize the payments received from Social Security, checking for both underpayments and potential overpayments. Timely resolution of any discrepancies is advisable to prevent future financial complications.
Don’t overlook the importance of these considerations in optimizing your Social Security benefits. Taking the time to understand and navigate the system can contribute to a more secure and financially stable retirement.
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Conclusion
Navigating the complexities of Social Security demands careful consideration. Avoiding common pitfalls, such as premature benefit claims and failure to coordinate spousal benefits, ensures a more secure financial future. Take proactive steps to safeguard your Social Security journey.
