Undeniably, Social Security has turned out to be a near-perfect source of income during the retirement years. There are many reasons for it. One of them is that you would not run out of money during your lifetime if you have invested in Social Security in your employment years. Since this retirement funds’ source is so important, possibly you do not want to take such steps unconsciously that may affect your SS benefits. But it has been seen that many SS beneficiaries do just that. It is all because this program is a little bit confusing and if you make just simple decisions, then you may suffer from a great loss.
To save yourself from costing you high, the below-mentioned
is the list of 7 mistakes that you should avoid. Learn more about them:

Ignoring to check
their earnings record
Social Security has a huge and strong database where it
keeps your earnings record throughout your career. With this record, SS
calculates your average wage that is used to determine the amount of SS
benefits. Sometimes, people do not check their earnings records with SS, whether
these are correct or not, losing their benefits in terms of wages that they
already paid as taxes.
Access to your SS account by visiting the official website
of the Social Security to examine your earnings record and if there is any
mistake, then do fix it. One can do it by contacting SSA as soon as possible.
Documentation will be needed, which may include tax returns, W-2s, paystubs,
etc. You need to give them complete evidence to trust you and get the records
fixed in any manner.
Staying in employment
for too few years
As you already know that SS calculates averages wages to
decide on your benefits, at the same time, average wages are calculated based
on the thirty-five years in which your earnings were maximum. If you do not
invest at least 35 years in employment, then SS will factor in $0 for every
year you are undersized. It impacts your average, particularly in the case when
you were working for fewer than 35 years. Focus on this milestone if you want
to maximize your retirement SS benefits.
Underestimating your
income
Some people work for themselves, they may not report all the
income they earn so that they can save on taxes. It could not only impact their
IRS audit it will also shrink their SS benefits since the size of their check
is based on the average wage. So, if you do not want to shortchange yourself in
the retirement years, it would be good if you report every dollar you earn and
side by side, you are paying the SS tax on the income according to the annual
wage base limit.
Leaving work when
your earnings potential are at the peak
A lot of workers deal with low earnings in their careers,
even after the adjustment of inflation. The time, when you did not have too
much earnings, it can drag down the average wage that decides on your SS
benefits. One can replace those years with maximum-earning ones by working more
than thirty-five years factored into the calculation. By staying on the job a
few additional years, it could help you replace some low-earning years that
will affect your average wage to a higher extent and increase your benefit for
the rest of your life. So, don’t make this serious mistake.
Not having complete
info about all the available benefits
There are different types of Social Security benefits you
could have. Like survivors and spousal benefits can be claimed only if you are
widowed or married. And if you were married for at least 10 years, then you
could be qualified to receive these benefits, yes, even after a divorce. Make
sure you know that these SS benefits could be maximum if your partner earned
more than you. It is advised to understand all the available options before
claiming any of the SS benefits.
Applying for benefits
at the wrong time
Make sure you understand the right time to claim SS
benefits. There are 3 options you may have when you can claim your SS benefits,
these are:
- At full-retirement age: Claiming between 66 and 67 and getting your standard benefit amount
- After full-retirement age: If you claim in this period, then you will get your raised benefits with delayed retirement benefits. However, you will receive fewer checks.
- Before full-retirement age: If you do claim before the normal retirement age, then your benefit will be decreased by early filing penalties, but checks will be given to you earlier.
SS beneficiaries who live long enough for maximum monthly
benefits to receiving missed checks, they can delay, which really makes sense. In
case, if you do not expect that you survive long or would rather receive more
checks with smaller amounts, it would be better for you to claim early. The tip
here is that try to go deeper and realize how your age will impact your SS
benefit amount, rather than making your own choice quickly.
Bypassing the rules before
you apply or act
Now, it is completely understandable that there is a lot to
explore about Social Security. There are several rules and regulations that you
should not miss in any case whether you are going to claim your benefits or
not. Try to get your hands on those rules, which may include how your monthly
benefit is calculated, what is the best age to get SS benefits and how early
filing could influence your SS benefit amount. Make your intention to maximize
the earnings throughout the career, increasing the chances of getting the highest
benefit for sure.
In the end, it can be said that retirement years are the
best time to spend with family. So, don’t ruin them by just thinking about the
expenses in those years. Invest time to learn more about the SS benefits that
are waiting for you and secure your retirement years financially.