3 ways to lose your social security benefits

There are perhaps 50 ways to lose your lover – and in social security, there are many ways to lose your benefits. Maybe not 50, but this remains problematic, as Social Security income is essential for many retirees and any reduction in benefits can have serious consequences.

Here are three ways to lose some of this income. Consider these caveats to get the most out of Social Security.

Social security checks in your future are not fixed. Not only will they be adjusted for inflation, but you can also take steps to increase or reduce them. A key decision for most retirees is when to start collecting benefits – because the delay can make your checks more dense.

Each year beyond your retirement age, if you delay benefit payments, their value will increase by approximately 8% until age 70. If you're late for 67 to 70, you can end up with about 24% larger checks. If you start collecting early, your checks will be smaller. For each year prior to the retirement age that you begin to collect, your benefits decrease by approximately 7%. So if your retirement age is 67 and you start receiving benefits at age 62, your checks will be about 30% smaller.

Delaying until age 70 is indeed a wise choice for many people – but not for everyone. And starting to collect early is not as punitive as it may seem. Indeed, the system is designed so that the total benefits received are pretty much the same, no matter when you start collecting, if you have a normal life set by the team of Actuaries of Social Security. Even if checks starting at age 62 will be considerably smaller, you will receive many more. If you can invest some of that money, you may be doing as well or better than if you had waited.

More: Do all seniors pay taxes on their social security benefits?

Social Security Tips: These 3 things could permanently reduce your benefits

Another way to lose the benefits of social security is to be scammed or stolen. Scams related to social security are on the rise. According to a report, social security numbers are more often compromised than credit card numbers. Thieves who have obtained information such as your name, date of birth and social security number can open an account my social security system in your name and attempt to steal your benefits.

You can thwart it by opening your own social security account before any identity thief. This is convenient because having an account means that you can access the Social Security Administration (SSA) website and take care of various matters, including:

You can also request to receive your benefits on the SSA website.

You can avoid many scams by not sharing any personal information with strangers who call you unexpectedly or who do not send you an alarming email suggesting you cancel your services or suspend your security number. social. Do not forget that companies and public bodies do not usually call you to ask you for personal information and that they often use mail instead of emails for important communications.

Finally, as the media point out, we risk losing social security benefits if the program becomes insolvent. This may not happen – and if that happens, it may not be the case. enough as terrible as you think.

Since people have been living longer in recent years, the ratio of social security contributors to retirees receiving benefits is decreasing. The Social Security Trust Funds, which have been in surplus every year since 1984, have been cashing for a long time more money than they are paying. These surpluses are diminishing and should stop around 2020. This does not mean that they will suddenly have more money.

At this point, the system can rely on incoming interest payments to fill the funding gap – for a while. According to a government estimate, social security funds will see their reserves dry up around 2034 – but only if no changes are made. If this happens, Social Security checks will not stop happening, but they will be smaller – about 23%.

Fortunately, social security can be strengthened if people in Washington want it. Much of the shortfall in earmarked funds could be eliminated by increasing the social security tax rate for employers and employees. (It also does not work on the first tax increase.) The tax rate was increased in 1983 to strengthen the program before many baby boomers retire.)

Another possibility is taxing all of each worker's income. There is a cap on the amount of our income that is taxed for social security. This ceiling is set at $ 132,900 for 2019. Most of us are taxed on all of our income, but if – for example – you have the chance to earn $ 1,132,900 in 2019, you will not pay no social security tax on $ 1 million of your income. The elimination of the 10-year earnings ceiling, so that we are all taxed on all of our income, could help eliminate the trust fund deficit.

It is worthwhile to learn more about social security to make the most of it. To begin, find out how you can increase your social security benefits.

Motley Fool has a disclosure policy.

Motley Fool is a USA TODAY content partner providing financial information, analysis and insights designed to help people take control of their financial lives. Its content is produced independently of USA TODAY.

Motley Fool Offer: Social security premium of $ 16,728 that most retirees neglect completely

If you are like most Americans, you have a few (or more) years behind your retirement savings. A handful of little-known "social security secrets" could help you increase your retirement income. An easy trick could bring you up to $ 16,728 more … every year! Once you've learned how to maximize your Social Security benefits, we believe you can retire confidently with peace of mind. Just click here to find out how to learn more about these strategies.

There are perhaps 50 ways to lose your lover – and in social security, there are many ways to lose your benefits. Maybe not 50, but this remains problematic, as Social Security income is essential for many retirees and any reduction in benefits can have serious consequences.

Here are three ways to lose some of this income. Consider these caveats to get the most out of Social Security.

Social security checks in your future are not fixed. Not only will they be adjusted for inflation, but you can also take steps to increase or reduce them. A key decision for most retirees is when to start collecting benefits – because the delay can make your checks more dense.

Each year beyond your retirement age, if you delay benefit payments, their value will increase by approximately 8% until age 70. If you're late for 67 to 70, you can end up with about 24% larger checks. If you start collecting early, your checks will be smaller. For each year prior to the retirement age that you begin to collect, your benefits decrease by approximately 7%. So if your retirement age is 67 and you start receiving benefits at age 62, your checks will be about 30% smaller.

Delaying until age 70 is indeed a wise choice for many people – but not for everyone. And starting to collect early is not as punitive as it may seem. Indeed, the system is designed so that the total benefits received are approximately the same regardless of when you start collecting, if you have a normal life set by the team of Actuaries of Social Security. Even if checks starting at age 62 will be considerably smaller, you will receive many more. If you can invest some of that money, you may be doing as well or better than if you had waited.

More: Do all seniors pay taxes on their social security benefits?

Social Security Tips: These 3 things could permanently reduce your benefits

Another way to lose the benefits of social security is to be scammed or stolen. Scams related to social security are on the rise. According to a report, social security numbers are more often compromised than credit card numbers. Thieves who have obtained information such as your name, date of birth, and social security number may open a my Social Security account on your behalf and attempt to steal your benefits.

You can thwart it by opening your own social security account before any identity thief. This is convenient because having an account means that you can access the Social Security Administration (SSA) website and take care of various matters, including:

You can also request to receive your benefits on the SSA website.

You can avoid many scams by not sharing any personal information with strangers who call you unexpectedly or who do not send you an alarming email suggesting you cancel your services or suspend your security number. social. Do not forget that companies and public bodies do not usually call you to ask you for personal information and that they often use mail instead of emails for important communications.

Finally, as the media point out, we risk losing social security benefits if the program becomes insolvent. This may not happen – and if that happens, it may not be the case. enough as terrible as you think.

Since people have been living longer in recent years, the ratio of social security contributors to retirees receiving benefits is decreasing. The Social Security Trust Funds, which have been in surplus every year since 1984, have been cashing for a long time more money than they are paying. These surpluses are diminishing and should stop around 2020. This does not mean that they will suddenly have more money.

At this point, the system can rely on incoming interest payments to fill the funding gap – for a while. According to a government estimate, social security funds will see their reserves dry up around 2034 – but only if no changes are made. If this happens, Social Security checks will not stop happening, but they will be smaller – about 23%.

Fortunately, social security can be strengthened if people in Washington want it. Much of the shortfall in earmarked funds could be eliminated by increasing the social security tax rate for employers and employees. (It also does not work on the first tax increase.) The tax rate was increased in 1983 to strengthen the program before many baby boomers retire.)

Another possibility is taxing all of each worker's income. There is a cap on the amount of our income that is taxed for social security. This ceiling is set at $ 132,900 for 2019. Most of us are taxed on all of our income. However, if you are lucky, for example, to earn $ 1,132,900 in 2019, you will not pay any social security tax on $ 1 million of your income. The elimination of the 10-year earnings ceiling, so that we are all taxed on all of our income, could help eliminate the trust fund deficit.

It is worthwhile to learn more about social security to make the most of it. To begin, find out how you can increase your social security benefits.

Motley Fool has a disclosure policy.

Motley Fool is a USA TODAY content partner providing financial information, analysis and insights designed to help people take control of their financial lives. Its content is produced independently of USA TODAY.

Motley Fool Offer: Social security premium of $ 16,728 that most retirees neglect completely

If you are like most Americans, you have a few (or more) years behind your retirement savings. A handful of little-known "social security secrets" could help you increase your retirement income. An easy trick could bring you up to $ 16,728 more … every year! Once you've learned how to maximize your Social Security benefits, we believe you can retire confidently with peace of mind. Just click here to find out how to learn more about these strategies.