This week’s segment of Better Money Boston on WCVB5 focuses on Social Security. Joel Johnson, CFP® talks about common mistakes that people make when claiming their benefits.
Taking Benefits Too Early
96% of people are taking their benefits at the wrong time. Taking benefits too early can leave up to millions of dollars on the table.
It’s important to look at Social Security in the big picture to make sure the timing fits your overall financial plan.
Thinking Benefits Increase at Full Retirement Age
Full Retirement Age is the age you reach where you will not be penalized for earning money in addition to your Social Security benefit.
For instance, if you begin collecting your benefit before you reach full retirement age and are still working, making over roughly $18,000 a year, you will have to give some of that Social Security back.
Not Understanding Rules for Married People
If you are married, divorced, or widowed, and your spouse is or was eligible for benefits, you may be able to receive spousal benefits. If you are also eligible for a retirement benefit and it happens to be higher, the Social Security Administration will pay that retirement benefit but not both.
No matter what your situation, Joel Johnson, CFP® highly recommends receiving a Retirement Income Plan to see how your Social Security will fit in with the rest of your financial picture.
