3 All Too Common Social Security Mistakes Retirees Make
Common Pitfalls in Social Security Decisions
When making decisions about Social Security, retirees often encounter pitfalls that can affect their financial future. Understanding these mistakes is essential for maximizing benefits.
Mistake 1: Delaying Benefits Too Long
While waiting until age 70 to start receiving Social Security benefits can increase the monthly amount, it can also limit overall lifetime income. If a retiree considers their health situation, they might find it less beneficial to wait.
Mistake 2: Ignoring Spousal Benefits
Many retirees neglect spousal benefits that could significantly increase their total income. By not fully exploring options, they risk missing out on substantial financial support.
Mistake 3: Not Considering Tax Implications
The taxable status of Social Security benefits can catch retirees off guard. Failure to plan for taxes on these benefits can reduce expected income.
Avoiding Social Security Mistakes
Retirees should seek advice to navigate Social Security effectively. By avoiding common mistakes, they can enhance their income potential and enjoy a more stable retirement.
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.