After decades of paying into the Social Security system, older Americans no doubt look forward to when they can start collecting monthly Social Security benefits. CBS News warns they should be mindful of four common mistakes they could make that will cost them thousands.
The first mistake they make is claiming too early at age 62 before reaching the Full Retirement Age (FRA) at age 67. That can reduce the monthly benefit by as much as 30 percent
Another big error is what’s called The Widow’s Scam. This involves applying for survivor’s benefits after a spouse dies while claiming your own benefits. The Social Security Administration (SSA) pays the higher amount, but depending on your age when you claim it, you may be cheated.
Some recipients opt to keep working even after filing for monthly benefits. There are limits on how much you can earn. If you exceed them, you can get hit with taxes.
The other problem can occur when Social Security overpays you through no fault of your own. They then can demand repayment, which can run in the thousands.
Council of Seniors Works to Strengthen Social Security
Additional retirement income can ease seniors’ worries. Here at Council of Seniors, we’re working diligently to get Congress to pass The SAVE Benefits Act. This legislation is a must because the annual Social Security cost-of-living adjustment (COLA) has shortchanged seniors in several recent years. Once it passes, the $581 missing their benefits will be returned.
Sign our petition right away and get others to help, too! Congress needs a wake-up call about how many Americans support this bill.
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