Your retirement years should be the best of your life, and that’s why you want to avoid making any mistakes that might make it hard or stressful.
Robin Hartill at The Motley Fool has shared 4 Social Security surprises that could ruin your retirement.
Hartill warns of “four mistakes that could derail your retirement.” These mistakes include:
- Decisions you make now can affect you in the future. Be aware that “claiming early at 62 instead of holding out until 70 can reduce your monthly benefit.”
- Don’t forget to coordinate with your husband or wife. Hartill suggests a potential strategy of the spouse who earns more to work longer while the other collects benefits sooner – “then the lower earner can switch over and take 50% of the higher earner’s full retirement benefit.”
- Factor in taxes. Keep in mind that “if you’re single with an income between $25,000 and $34,000, or married with an income between $32,000 and $44,000, up to 50% of your benefit may be taxable.” And remember that “up to 85% of your benefit could be taxable if your income is above these thresholds.”
- Cost-of-Living Adjustments (COLAs) can not be relied upon. They’ve been far too low for far too long.
Passing The SAVE Benefits Act will go a long way towards resolving – or lessening the impact – of some of these common mistakes. Join us as we continue working to pass this crucial legislation.
What can you do? Please consider signing our petition to Congress.
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