Millions of Americans are unknowingly leaving thousands of dollars on the table due to a simple yet costly oversight in their Social Security planning. A recent study reveals that a lack of financial literacy is preventing retirees from claiming the full benefits they’re entitled to.
The Hidden Cost of Financial Ignorance
Many retirees fail to realise that delaying Social Security claims can significantly boost their monthly payouts. By claiming early at 62, beneficiaries lock in permanently reduced payments, often sacrificing up to 30% of potential lifetime benefits.
Key Factors Affecting Your Benefits
- Claiming age: Waiting until full retirement age (typically 66-67) ensures 100% of benefits, while delaying until 70 increases payments by 8% annually
- Work history: Benefits are calculated using your 35 highest-earning years
- Marital status: Spouses may be eligible for up to 50% of their partner’s benefit
How to Maximise Your Social Security
Financial experts recommend several strategies to optimise Social Security income:
- Continue working until full retirement age to maximise your benefit calculation
- Consider delaying claims beyond retirement age for increased monthly payments
- Coordinate benefits with your spouse to create an optimal claiming strategy
With proper planning, retirees could secure thousands in additional annual income, transforming their golden years.
