Understanding Why Your Social Security Check May Be Lower Than Expected
Monday, 4 March 2024, 10:02
3 Key Reasons Your Social Security Check May Be Smaller Than Expected
There are different reasons why you may end up with less money from Social Security. For many people, Social Security serves as a critical source of retirement income. And if you're in that boat, a smaller monthly check than expected could really upend your finances. But here are a few reasons why you may end up with less money from Social Security than you thought you would.
- You took benefits early: You're allowed to sign up for Social Security as soon as you turn 62, but you're not entitled to your full monthly benefit until full retirement age (FRA).
- You filed early and are earning income from a job: Earnings beyond a certain limit may result in withheld benefits until FRA arrives.
- You're losing some of that money to Medicare premiums: Medicare Part B premiums can be paid out of your Social Security benefits automatically, reducing your monthly checks.
Understanding these factors and the rules around Social Security is crucial in managing your financial situation effectively.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.