4 Signs You’re Missing Social Security Funds

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Are you aware that you might be leaving Social Security money unclaimed? As individuals turn 62, the common urge is to file for Social Security benefits. However, pausing to reconsider this move could save you from potentially losing out on future financial resources. Countless retirees annually forfeit substantial sums unknowingly.

Below, explore four indications that you might be neglecting valuable Social Security benefits that rightfully belong to you.

Why Filing Immediately May Not Be Wise

The allure of accessing Social Security benefits promptly upon eligibility can be hard to resist. Nevertheless, such immediate filing could lead to an unwanted reduction in your eventual payouts. Transitioning from full retirement age (FRA), between ages 66 and 67, if one opts to file early at 62, benefits might decrease by as much as 30%. For instance, a scheduled $2,000 monthly benefit at FRA would shrink to $1,400. Conversely, delaying benefits until age 70 could yield an annual increase of up to 8%.

There are situations where early filing makes sense, particularly with severe health situations or a lack of alternative savings. Yet, for those with solid health conditions and supplemental savings, postponing Social Security can significantly elevate lifetime benefits.

The Value of Spousal Benefits

Spousal benefits, a lesser-known opportunity, could be financially beneficial. Whether someone is married, previously divorced, or hasn’t engaged in substantial employment, qualifying for such benefits is possible. You might receive up to 50% of your partner’s retirement benefit. Spousal benefits can begin at age 62, but similar to direct benefits, earlier claims might result in deductions.

Evaluating your and your spouse’s benefit amounts is key, especially if yours is less than half of theirs. Notably, spousal benefits remain available after a divorce, provided the marriage lasted at least a decade and one hasn’t remarried.

Ensuring Earnings Records Accuracy

Your primary insurance amount (PIA) for Social Security is intricately linked to the 35 highest-earning years. Therefore, ensuring all employment earnings are duly reported is crucial. Overlooking misreported or omitted earnings could subtract thousands from your lifetime benefits. To avoid discrepancies, reviewing your Social Security statement alongside tax records should be a routine task.

Should irregularities surface, promptly contact the SSA to correct errors before officially filing.

Maximizing Survivor Benefits

Losing a spouse need not mean losing financial security through Social Security. Those left behind can benefit from survivor benefits, the amount their partner was receiving or would receive. Eligibility for these survivor benefits begins as early as age 60, extending to those 50 and older with disabilities.

Knowing that one can switch to their own growing benefits if they exceed their late spouse’s is valuable insight. However, be mindful of reductions when claiming before reaching full retirement age.

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