More than 74 million Americans rely on social security benefits to pay their bills and strengthen their lifestyle on retirement. Factors such as when they require their own benefits, their income percentage they expect to change, and many other variables determine how much financial security will ensure the program. Whether you have to live alone from your social security check, use it to subsidize your fixed income and other pension accounts, make sure you make the best course.
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Bank narrators are in front lines. They stand between retirees and their money literally and see positive results when people get it at first glance every day when they go to work. However, they also see the consequences that those who have made mistakes.
Gobankingrates talked to Isabella Bogumil, a relationship advisor with an additional financial credit union in Lake Maria, Florida. Relationship advisors are additional financial equivalents, and Bogumil is a bridge between its retirees and social security income it protects in their name.
Based on her experience, these are four most common and consequences she see pensioners with their own social security benefits. Avoid them to get as much program as possible.
The whole age of retirement age, when recipients can collect the full benefit, is 67 for those born in 1960. Or later. Everyone becomes the right to demand social security at the age of 62, but early retirement compromise is a lower inspection.
Social Security Administration (SSA) reduces the benefits of 5/9 out of 1% each month, you demand early up to 36 months. After that, SSA further reduces your benefits by 5/12 1% per month until your inspection is reduced to 30% and the result sees too often.
“The most common mistake I see is with seniors who are 62, and then immediately demand their benefits,” she said. “This forces them to lose a considerable amount of their full benefit in a month. Over time, everything is expensive, seniors who refine early and try to arrange the end.”
How SSA reduces the benefits of those who require early, they betray credit that increases your payment for delay in retirement and demands late. “If possible, I recommend waiting to wait until the age of 70 to demand social security to get the maximum benefit,” Bogumil said.
Bogumil has a good point as 2025 The maximum social security pension benefit is $ 5,108 a month for those who postpone claims up to 70 years, while the maximum benefit to those who require the earliest 62 -year -old benefits is $ 2,831 per month.
Find out more: 8 normal mistakes made by retirees following their social security checks
According to SSA, 37% of men and 42% of women over 65 years of age and receive social security benefits of 50% or more. Worse, 12% of men and 15% of women depend on social security 90% or more of their income, and the percentage program has never been developed.
“For many seniors, social security is the main source of their income, but there are many older members who need to return to work due to the increasing cost of living,” Bogumil said. “Unfortunately, social security simply does not reduce its income.”
SSA says the benefits usually change about 40% of the revenue before pension, which means that other flows have to make a heavy lifting. “I recommend having a second or even third source of income to cover those additional subsistence costs such as pension, 401 (K) or Ara,” Bogumil said.
Another big mistake is inquiry and reconciliation, which is by no means typical of seniors when it comes to financial management. Still, they have to lose the most. Just like having a budget, be sure to watch what the money comes and goes out.
“Many seniors feel as if they are approaching and getting social security, they can ‘set and forget,'” said Bogumil. “However, records can often be incorrect or incomplete. I recommend seniors to check their earnings every year to make sure they are accurate and complete. If something seems wrong, contact the Social Security Administration immediately.”
Another common mistake that is not specific to people of retirement age, but one that can harm them more than younger demographic indicators, self -browsing a complex and decisive financial procedure without having to understand the process, possibilities or possible results at all.
“Social security is not always an easy step by step process,” Bogumil said. “I hear from many seniors for whom the process is long and confusing when they go to apply. Financial advisers can help make a plan and make individuals at every step of how to make the most of their benefits.”
Caitlyn Moorhead has contributed to the reports of this article.
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This article initially appeared on the website gobankingrates.com: I’m a bank cashier: 4 mistakes social security recipients make
