How to Avoid These 5 Common Social Security Mistakes in Your Golden Years

An increase in monthly benefits for almost 70 million Social Security recipients is expected in 2022 due to the agency’s decision to include a 5.9% Cost-Of-Living Adjustment (COLA).

However, there are other misunderstandings about Social Security benefits that many individuals do not know about. As a result, seeking the advice of a fiduciary financial counselor is critical. These finance experts can evaluate your retirement plan and assist you in determining how the benefits from Social Security fit into your overall strategy.

According to a 2021 Northwestern Mutual poll, 71% of Americans see the need for better financial planning. However, just 29% of Americans have a financial counselor working for them.

As a result of this study, individuals who work with a financial adviser feel more at peace about their finances and have an additional 15% more money to spend in retirement, which is based on the fact that advisers are legally banned from guaranteeing returns.

Over 25 years, an investment of $500,000 from Vanguard would increase to over $3.4 million on average, whereas the predicted value from self-management would be half that at $1.69 million. An advisor-managed portfolio would increase at a rate of 8% per year over 25 years, whereas a self-managed portfolio would only grow at an annual rate of 5%.

With the help of SmartAsset’s free service, choosing a financial adviser is no longer a laborious task. An easy-to-fill-out questionnaire lets you connect with up to three local fiduciary financial advisers who are legally required to act in your best interest. Advisors are screened and subjected to our due diligence requirements throughout a brief procedure that takes no more than a few minutes.

Your Social Security payments will be available shortly if you’ve reached Full Retirement Age (FRA). Avoid these common mistakes, which might significantly affect the compensation amount you receive.

Not making the most of your money

Earning as much money as possible during your career to maximize your Social Security benefits is crucial. The employees will be taxed 6.2% in 2021 on salaries up to $142,800.

Worked less than 35 years

To arrive at your ultimate benefit, the government looks at your total earnings during the 35 years you worked the hardest. The Social Security Administration (SSA) uses the Average Wage Indexing Series but adds zeros for every year you are younger than 35 years old since wages vary over time.

Adopting Early Acceptance of Benefits When They Are Made Available

Social Security payments may begin before age 62, but you’ll forfeit 30% of your benefits for that year. However, the benefits you get when you’re 62, 66, or 67 years old aren’t your maximum benefits. Every year you delay receiving benefits until you reach the maximum benefit at age 70, your benefits will rise by 8%.

Ignoring your spouse’s financial needs

If you and your spouse have been married for at least ten years, you may defer filing for your benefits and get half of your spouse’s benefit (although several conditions may apply). A higher-earning spouse may benefit you since spousal benefits are calculated depending on the spouse’s wage. As a result, widows and widowers might also benefit from a spouse’s increased income.

The failure to consult a financial counselor in advance

Some financial experts specialize in Social Security preparation and can assist you in deciding when to take your benefits and how to avoid tax pitfalls. They may also be able to aid you in determining exactly how the benefits you get go into the computation of your income in retirement. This may reduce your reliance on the tax-advantaged accounts, enabling your savings to continue to grow tax-free.

Your neighborhood is likely home to several highly competent financial advisers. However, choosing one might prove to be complicated.

You can quickly and easily locate an experienced and trustworthy financial adviser using our no-cost service. You may now be connected with up to three verified and subjected to our due diligence standards fiduciary investment advisers that service your region. To finish the whole process of matching, you’ll only need a few minutes.

Contact Information:
Email: [email protected]
Phone: 3234811328

Bio:
For over 13 years, Jason Anderson has served as a Personal Financial Advisor, Estate and Retirement Planner, helping to educate individuals from all walks of life and income levels on wise money investment and planning for a comfortable lifestyle and retirement.

Over time, Jason Anderson has become the ‘Go-To’ leading authority on personal financial advising, financial planning, and analysis, as well as retirement planning and financial planning for SMALL BUSINESS OWNERS. He also provides HIGHLY Popular financial education seminars for groups. These financial seminars empower people to more effectively budget, plan, manage their money, and achieve their personal financial goals. As a result of the excellent results, praise, and feedback that their financial seminars have received, the City of Los Angeles, The AFL-CIO union groups, as well as several other organizations, have decided to partner with Jason to more effectively accomplish their mission. He was also honored to be showcased in the November 2014 issue of Forbes Magazine “Americas Financial Leaders” and has been dubbed by the media as ‘The Financial Educator.’

Jason is passionate about the work he does because it brings him joy to help his financial planning and advising clients reach their financial goals. He finds excitement in assisting families in saving and paying for their children’s college education without stress, thanks to the financial plans he designs for them. He also takes pride in witnessing clients reach retirement and enjoy it precisely the way they desire.

Personally, Jason finds joy in being a husband and father of two wonderful children. In his spare time, he enjoys traveling, sports, hiking, and reading.

He works with Employees, Business Professionals, Business Owners, and ‘High Net Worth’ People.

► Like to discuss your personal financial situation?
☏ Call Jason at (323) 481-1328 for a FREE Consultation
✉ Email him at [email protected]

Disclosure:
All annuity and life insurance products are designed to supplement securities as part of an overall plan. The recommendation of annuities and life insurance is not designed to eliminate the need for securities in any way.