Social Security Election: 3 Most Common Mistakes
As the Baby Boomers transition their lives from their earning years to their burning years, they will need to make some major decisions. One decision which will be made more than any other will be whether to take social security or to defer it. The decisions they make today could possibly cost them tens of thousands of dollars over their longest vacation called Retirement. This article will focus on 3 of the most common mistakes retirees make with their social security election.
- Thinking of 62 as being “Social Security age” without realizing the penalties they pay by claiming early benefits.
- Filing for benefits without understanding all the ramifications of spousal benefits, survivor benefits, and the earnings test.
- Failing to consider the lifetime value of Social Security over a long life expectancy, and how it provides longevity insurance in the event of a very long life.
The math behind whether to elect social security before Full Retirement Age could possibly make or break a retirement. We will continue this blog with a series of things to consider when applying for your most reliable income stream in retirement. Right now, we want to demonstrate these ramifications of the 3 major mistakes that we see Baby Boomers should consider when electing their benefits.