Mistakes matter when it comes to Social Security. In fact, some mistakes could cost you hundreds of thousands of dollars in lifetime income.
What then are some of the mistakes to avoid?
Well, according to Larry Kotlikoff, a professor at Boston University and president of Economic Security Planning, there are quite a few. But the big one has to do with taking benefits too early so as to not lose them. “There is an enormous return for most people to waiting until 70 to collect their highest possible retirement benefits,” says Kotlikoff.
How much return? If you delay benefits past your full retirement age, your year of birth and the number of months you delay determines how much your benefit can increase.
The best thing to do: Use Social Security’s Online Calculator to get an estimate of what your benefit will be if you delay to certain ages.
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