Social Security Benefits: Key Mistakes to Avoid
7 Critical Mistakes to Avoid with Social Security Benefits
Starting to claim Social Security benefits is an important milestone for many Americans. It's vital to understand what not to do to ensure you’re making the most out of your checks. Here are some common pitfalls:
1. Claiming Too Early
Claiming before full retirement age can significantly reduce monthly benefits.
2. Ignoring Spousal Benefits
Many fail to calculate spousal benefits, leaving money on the table.
3. Not Considering Tax Implications
Overlooking taxes on Social Security can lead to unexpected financial burdens.
4. Failing to Reassess Needs
Your needs may change, and so should your claiming strategy.
5. Misunderstanding Eligibility Rules
It's crucial to fully understand what qualifies you for benefits.
6. Neglecting to Plan for Healthcare Costs
Healthcare can be a significant expense during retirement, impacting your benefits.
7. Skipping Financial Planning
Not engaging in proactive financial strategies can hinder your financial security.
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.