Workers in the United States can lose much of their Social Security if they continue to make some mistakes. Moreover, these mistakes are very common and not all people know they exist. Moreover, we can see that up to 58% of workers make them. Therefore, this means that almost 60% of Americans who apply for their Social Security lose part of it. This is a very large percentage for such an important issue.
If you don’t want to make this common mistake, we advise you to closely follow these tips so you don’t lose too much of your Social Security. The important thing is to have enough money to be able to pay your bills every month. If you make this mistake, it is very likely that you will have much less money each month than you think you will have.
The mistake that eliminates part of Social Security
If you are thinking about starting to collect Early Retirement Age Security (ERA) and working at the same time, you may have some bad news. Relying on these two sources of income causes you to lose part of your Social Security. To be more precise, you will lose $1 out of every $2 if you earn more than $19,560 a year. With this in mind, it may not be worth applying for your Social Security so soon.
In this regard, it is much better to wait for Full Retirement Age (FRA). If you wait, you will be entitled to a larger benefit, so you will not lose part of your retirement. Also, if you work after you apply for FRA you will have a different and much more convenient penalty. You will lose $1 for every $3 you earn above $51,960.
What to do to avoid losing part of your SSA retirement?
As general advice it is always best to wait a little longer to apply for your Social Security retirement benefit. If you apply for your benefit at age 62, you will collect only 70% of the money you have contributed. On the other hand, if you wait until age 67, you will receive 100% of your benefit. Also, keep in mind that it is not a good idea to work at a high salary while collecting ERA, as it will cause you to lose money.
Therefore, the bottom line is that the best option is to wait until age 70. If you wait until that age to apply for retirement, you will get a bonus. Each month worked between the ages of 67 and 70 will add a substantial amount of money to your Social Security check. If you work after age 70, you won’t get any extra benefit, but you won’t see your benefit reduced either.