Most people are aware you can sign up for Social Security when you reach age 62. But you will receive a smaller benefit by not waiting until your Full Retirement Age (FRA). Many Social Security rules are confusing, so more people aren’t aware of three lesser-known rules that can affect their claim.
The Motley Fool cautions seniors to be aware of these rules to get the most out of Social Security. First, if you do file at age 62 and realize it may have been a mistake, you can undo your claim within the first year and refile at a better age. The only catch is you have to repay the money you collected.
Another rule to be aware of is under certain circumstances, you may have to pay taxes on your benefit. Federal taxes may be required depending on your adjusted gross income.
The last rule to know is there’s no option to increase a spousal benefit, which amounts to 50 percent of a current or former spouse’s earnings if you file at your FRA. Waiting to file at a later age will not increase the benefit.
Council of Seniors Wants to Strengthen Social Security
Here at Council of Seniors, we’re dedicated to getting Congress to pass The SAVE Benefits Act. This bill is designed to make up for inadequate annual Social Security cost-of-living adjustments (COLAs) that withheld $581 from seniors. If this bill passes, seniors will finally be reimbursed.
Signing our petition is the first thing you can do to help. Let others know they can help show Washington politicians the growing number of people supporting this bill.
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