When it comes to Social Security, seniors need to keep in mind two key rules to avoid messing up their retirement plans, according to Maurie Backman at The Motley Fool.
Many seniors rely heavily on Social Security as the anchor for their retirement finances. What they may not consider is that retirement can turn out to be more expensive than they anticipate. Between inflation, low COLAs, and rising and unexpected expenses, they could be in for an unwelcome surprise.
First, those who didn’t wait until full retirement age to file for Social Security will significantly reduce their monthly payment. Depending on when a person was born, the full retirement age can vary from 66 to 67.
The other rule to understand is that some benefits could be subjected to taxes depending upon where you live and your overall retirement income. Social Security considers what’s called provisional income to determine tax liability. That’s income including all non-Social Security income plus 50% of your Social Security benefits. Certain income levels will make seniors tax liable. Also, some states tax Social Security benefits.
You Deserve ALL of Your Social Security Benefits
Seniors have worked hard for so many years, and that’s why it’s maddening that so many seniors aren’t receiving every last penny of the Social Security Benefits they rightfully earned. Greedy politicians are withholding $581 from seniors, as the Social Security cost of living adjustment (COLA) has not been adequately adjusted in recent years. Council of Seniors is trying hard to get Congressional action on The SAVE Benefits Act to return this money to seniors.
We hope you will take time now to sign our petition. Your help in calling for Congress to return this money to seniors will be greatly appreciated.
Do you understand all the key Social Security rules? Leave us a comment and let us know.