Many people in North Carolina rely on Social Security to help them during their retirement years. However, there are some common mistakes that people unknowingly make that jeopardize their benefits. To be on the safe side, here are the common errors you should be aware of regarding Social Security.
Mistakes to avoid
Not filing a claim when you are eligible. Many people assume that they don’t need to file because they have never worked or their income is too low. However, you may still be eligible for benefits based on your spouse’s work history. It’s important to file a claim even if you think you don’t qualify, as you may be surprised at what you find.
Waiting too long to apply for benefits. If you wait until after your full retirement age (FRA), your benefits will be reduced. The reduction amount varies depending on your exact FRA, but it can be as much as 25%. It’s best to apply for Social Security disability benefits as soon as you become eligible so you can start receiving payments without delay.
Overestimating how long you will live. It’s important to remember that social security is only meant to be a supplement to your retirement income, not your sole source of income. If you die sooner than expected, your loved ones may have to deal with less money than they anticipated. Plan for the worst and hope for the best by estimating how long you will live and budgeting accordingly.
Underestimating how much money you will need in retirement. Social Security may not provide enough money to cover all of your expenses, especially if you plan on living a long time in retirement. Make sure you save as much money as possible to ensure you have a comfortable retirement.
These are just a few of the most common mistakes people make when it comes to Social Security in North Carolina. If you want to avoid making these errors, do more research and be sure to consult with an expert.