The United States pension system is very specific and precise. When you know it you can understand perfectly which is the way to follow so that the Social Security Administration pays you the highest possible benefit. For that reason there are mistakes that we cannot make, as they would cause our monthly payment to be permanently reduced. Fortunately, the Social Security Administration clearly gives the rules for getting the highest possible benefit.
Anyway, for many people it is a mystery what is around Social Security, but there are several mistakes that we should never make. Among those mistakes there is one in particular that can benefit our retirement much more. If we make these mistakes we are doomed to not receive the benefit we truly deserve, so pay attention.
Unforgivable Mistakes That Reduce Your Social Security Pension
Unfortunately there are more mistakes, but these three are really easy to avoid. With them in mind you can manage to avoid them at all costs, at least for the most part. You’ll just need to follow the tips so that Social Security ends up being as great as it should be. Here’s the list of these three mistakes:
Not planning for retirement
The first of the most common mistakes is not planning for Social Security retirement. It doesn’t matter if you’ve just started working or you’ve been a worker for 20 years. You should plan for your retirement so that everything goes well in the future.
Try to work as many years as possible, look at pension plans and don’t procrastinate. If you have to do something about your retirement, do it as soon as possible. That way you will have more time to rectify if you need to.
Choosing the wrong age
Everyone is totally different and has different needs. The minimum age to apply for Social Security is 62, but you don’t have to apply. If you apply at 62 you will see a 30% reduction, but this does not have to be negative. Choose the right time. To get 100% of your benefit you should wait until you are 67. On the other hand, if you want your benefit to max out at $4,194 in 2022, you’ll need to work until age 70.
Not hiring an expert advisor
This mistake is more common than it sounds and makes a significant change to many retirees’ Social Security benefits. An expert advisor can help us increase our benefit and choose the right time. This is based on our personal situation. If you look for a financial advisor who knows the industry well, you can get the highest possible benefit on your terms.