A man with a surprised expression looks at a red circle containing hundred-dollar bills, with a background of city skyscrapers. — Don't Make Mistakes with Social Security or You'll Regret It | Billion Photos, Getty Images Signature, en.e-noticies.cat

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Those are the 3 Mistakes that Make You Lose a Lot of Money, the Social Security Says

Social Security Warns Millions of Americans to Be Very Careful Not to Take These Wrong Steps

22/03/2025 11:29:00h

Miguel Cuartas Ortego

The Social Security Administration (SSA) of the United States has issued an alert to all citizens. Avoiding certain mistakes when applying for Social Security benefits can be crucial to ensuring financial stability in retirement. Here, three common mistakes to avoid are highlighted:

Watch Out for Social Security: Beware of Applying for Benefits Too Early

One of the most frequent mistakes is starting the benefits application too early. Although it is possible to begin receiving payments starting at age 62, doing so can result in a permanent reduction of the monthly amount.

You Must Be Very Careful with This Warning | Getty Images

For each year the application is postponed between ages 62 and 70, benefits increase by between 5% and 8%. This increase is an opportunity that many should not overlook.

Beware If You Don't Maximize Work Income Before Retirement

The amount one receives from Social Security is based on the income history during their working life. Not taking full advantage of income opportunities can negatively affect the amount of future benefits.

It is essential to be informed about how additional income can influence benefits and plan accordingly. Be smart and know the Social Security rules.

Not Knowing the Tax Implications of Benefits Is a Mistake

Many beneficiaries are not aware that a portion of their Social Security payments may be subject to federal taxes. The amount subject to taxes depends on the level of total income. It is crucial to understand how taxes can affect benefits and plan financially to mitigate their impact.

A man with a surprised expression looks at a fan of hundred-dollar bills in an urban setting with tall buildings and a waving United States flag in the background.

Social Security Makes It Very Clear to You | Getty Images, nadianb, en.e-noticies.cat

Additional Tips to Make the Most of Social Security Benefits

Verify that the SSA has accurate records of your work income. Errors in these records can result in incorrect payments.

Participate in financial education programs offered by the SSA and other institutions. These programs provide valuable information on how to manage and maximize benefits.

Consider consulting with a financial advisor to develop a personalized strategy that aligns with your goals and circumstances. Avoiding these mistakes and following the SSA's recommendations can make a significant difference in the quality of life during retirement.

Proper planning and a clear understanding of how Social Security benefits work are essential to ensuring a stable financial future. Don't let it catch you by surprise.

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