The process of claiming one’s social security benefits can be particularly confusing. While most people know that they need to claim their benefits when they get older, they are often unsure of how, when, and why of what needs to be done to do so. Read on to learn more about four common pitfalls to avoid when cleaning social security benefits.

Collecting Before Retirement

Retirement benefits go into effect at the age of 62. However, these benefits will be less than the amount one would receive if they collect their benefits at full retirement age. By starting one’s benefits too early, one will reduce the months they can receive their benefits before reaching the full retirement age. Individuals that attempt to claim retirement benefits too early aren’t maximizing their earnings. By waiting beyond the full retirement age, they’ll be able to earn more than 100% of their benefits.

Failing to Review All Available Options

Many individuals that apply for social security benefits aren’t aware of the fact that they can take advantage of spousal benefits as well. Couples can coordinate claiming their benefits to be able to earn more than they would if they claimed individually. Depending on their age and the difference in benefit amounts, some individuals can even claim spousal benefit as they let their own benefits grow.

Improperly Planning for Unexpected Events

Just as one should have a plan in place for how unexpected life events may affect their regular earnings, it’s just as important to take this into consideration when it comes to one’s social security benefits. Unexpected situations like an accident or illness that affects an individual’s ability to work will have a significant impact on one’s earnings and SS benefits as well. In this situation, it is best for the injured or ill individual to contact a social security disability attorney. An attorney experienced with Social Security disability will help them understand Social Security disability insurance and will make it easier for them to take advantage of these benefits that will then convert to retirement benefits at the appropriate age.

Not Considering Social Security Taxation

Social security benefits are taxed. Failing to take this into consideration will result in serious issues. As anywhere between 0% – 85% of one’s benefits can be taxed, it’s important to do the due diligence to determine what taxes must be paid. Certain individuals will be able to coordinate what account to withdraw their retirement income from and time this decision with when they decide to take social security. This will help to reduce the amount in taxes they pay over the retirement years.

It’s important to take advantage of one’s social security benefits, but not before taking steps to avoid any unintended consequences. Keep the above four tips in mind as you prepare to apply for social security.

Meghan Belnap is a freelance writer who enjoys spending time with her family. She loves being in the outdoors and exploring new opportunities whenever they arise. Meghan finds happiness in researching new topics that help to expand her horizons. You can often find her buried in a good book or out looking for an adventure. You can connect with her on Facebook right here and Twitter right here.