Social Security can be an essential part of your retirement plans. Planning things carefully today can prevent losses tomorrow. Use these strategies to avoid mistakes that can cost you money in your retirement.
Consider these strategies to avoid common mistakes people make and don’t let them cost you.
1. Don’t claim benefits too early
Your benefits grow every year, so if If you have other income coming in and can afford to wait, then you may want to delay claiming your benefits. By claiming benefits early, you reduce how much money you will receive for the rest of your retirement.
2. Consider your partner’s income
Have you considered your spouse’s retirement and Social Security benefits? If he or she earns significantly more than you do, you might be able to collect higher benefits based on those earnings.
3. Check your records each year
As you work on your taxes, you may want to use this time as a reminder to check your Social Security records for missing information or errors. Social Security gives you 3 years to fix an error on the record. After this time, it may be impossible to fix.
4. Take into account the tax implications
Do you know that Social Security benefits can be taxed? Experts call this issue the Social Security Tax Torpedo. Your benefits can be taxed at a high rate, and it can last for your entire retirement.
Social security may be an important part of your retirement future so be sure to avoid these common mistakes that can cost you money in the future.