Posted at 10:00 AM and May 19, 2019
They may not be the most exciting reading, but you still need to read them again.
Millions of seniors now rely on Social Security, an essential source of retirement income. But if you do not pay attention, you risk losing benefits for nothing more than writing errors.
Your social security benefits are calculated based on your earnings during your 35 best-paid years of compensation. The age that you drop at will also plays a role in determining your monthly payments. Waiting until you reach retirement age (66, 67 or something in between) ensures that you get the full monthly benefit to which your earnings statement entitles you. Depositing before full retirement (you can claim benefits as early as age 62) reduces your benefits, while delaying your deposit after full retirement age increases your benefits (although this incentive is exhausted at age 70).
No matter when you apply for social security, the information in your pay statement is central to calculating your benefits. But if this information is wrong, you risk losing a critical income that is rightfully yours. The good news, however, is that you can avoid such a scenario by taking a simple step: check your statements of results year after year.
(Photo: GETTY IMAGES)
Be careful not to lose
Your annual social security statements show your taxable income, the amount you paid in Social Security and Medicare taxes and the amount of your monthly benefit based on this information. But if these statements contain errors in your income, this could affect the amount you ultimately receive.
Imagine that you earned $ 60,000 last year, but for some reason, the Social Security Administration (SSA) does not show any income in your records. This $ 0 could lower your average salary over the 35-year period used to determine your benefits, reducing your monthly payments.
That's why it's so important to review your social security statements year after year. If you are 60 or older, you will receive a copy of these statements by mail. do not throw them away and examine them instead. If you are not yet 60, you will have to Create an account on the SSA website and access your statements here. Then, if you spot an error, you must report it immediately to the SSA. The agency may request proof of your request in return, such as pay stubs, income tax returns or other information to support your claims.
Do not give up the money you owe right
In 2018, less than half of the 39 million Americans with Social Security online accounts had verified their tax returns in the last 12 months. This means that a large number of workers may see their benefits diminished due to a reporting or administrative problem. If you do not want this to happen, set a yearly calendar reminder to log in to the SSA website and view your statements. And if you are eligible to receive yours by mail, for the sake of your future income, do not throw it out before you have had the chance to read it carefully.
Tax evasion scam of social security:It's growing, and that's how it works
Social security needs a solution: Here's how much we need to raise taxes to do it
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. But a handful of little-known "social security secrets" could help you increase your retirement income. For example: 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.
Millions of Americans file their taxes each year. Where is all this money going?
Just the FAQ, USA TODAY & # 39; HUI
Read or share this story: https://www.usatoday.com/story/money/2019/05/19/are-you-checking-your-social-security-statements-heres-whyy-you- should / 39447699 /