4 Social Security Mistakes to Avoid
The decisions that you make about Social Security will affect the benefits that you receive when you retire.
In fact, if you sign up too soon or don’t end up working long enough, you won’t be able to gain the maximum benefit from Social Security when you retire.
For that reason, here are 4 social security mistakes to avoid:
#1: Working for less than 35 years
In order to calculate the social security that will be paid to you, the 35 years where you earn the most is usually taken into consideration. Now if you don’t work for at least 35 years, your monthly payments will be reduced considerably if you’re not careful.
#2: Signing up too early
Signing up for social security at the age 62 (considered too early) will result in your monthly payments being reduced if you do. Even though this is rather tempting, this will affect your retirement finances for the rest of your life.
#3: Knowing the Age You Retire
Just as you would know your birthday, you should also know as to when is the age to avail of these retirement benefits. Of course, this depends on your birth year but the age is usually around 66 and 67.
#4: Not Waiting to Claim Social Security
One of the ways by which you can increase your monthly payments is by waiting until the age of 70 so as to claim social security. Even if this does not apply to everyone, it’s still a good idea to consider when would be the optimal time to opt for these benefits.