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Reduced Social Security Benefits Can Be Avoided by Completing This Two-minute Task

A person’s ability to collect Social Security benefits is based on the amount of taxes they have paid throughout their working lives. In light of the fact that this retirement income is a key source of money for you once your wages have stopped, it is imperative that you collect every dollar you are entitled to receive.

As a result, completing one easy, two-minute task per year is critical.

If you want to avoid a reduction in your Social Security payment, you need to make sure that every dollar you earn is counted toward your benefit.

There is a “wage base limit” that you pay Social Security taxes on, which is the amount of money you make. A maximum of $147,000 in 2022, which is the inflation-adjusted equivalent of that amount each year, means that the vast majority of people pay taxes on their full earnings. The Social Security Administration receives this information from your employer.

The Social Security Administration then keeps track of your wages. Then when it’s time, it takes into account inflation over your career and offers you a standard benefit equal to a percentage of your greatest 35-year earnings.

Only if your company correctly reports all wages and Social Security documents them properly can you receive accurate benefits. That’s not always the case, however, because mistakes can be made. For the sake of your financial well-being, you should review your earnings record every year.

Check Your Earnings Records With These Steps.

Checking your wage history is so easy that there’s no reason not to do it right now.  Signing into mySocialSecurity.gov is all you need to do to begin.

If this is your first time on the site, you’ll need to fill out some basic information and select a username and password to get started. If you’ve already signed up, all you have to do is log in and receive a security code by email to verify your identity.

You’ll be brought to the main page where you may click “Review your full earnings record now” after agreeing to the “Terms of Service.” For each year that you’ve had pay reported to Social Security, you should be able to obtain a list of that year’s total wages. It is possible to verify that the correct amount of income was reported by using this information.

It is best to go back as far as you can in comparing reported income to what you actually earned if you haven’t done so before. It’s possible that this will include going through old tax records and documents. Once you get into the practise of checking your wages each year, you’ll just need to check the most recent year.

If you notice a mistake, repair it soon while you still have all of your paperwork. When you reach retirement age and learn that your benefit is lower than anticipated, it will be far easier to deal with this now than it will be in a few decades. Because of this, taking two minutes a year to verify that Social Security has all of your correct information is well worth it.

Bonus of $16,728 that most retirees might not even know about

When it comes to investing for your retirement, most Americans are a few years (or more) behind the curve. However, there are a few “Social Security secrets” that can help you get more money in your retirement fund. You might make an extra $16,728 a year with just one simple method, for example. We believe that after you’ve learned how to optimise your Social Security benefits, you’ll be able to retire with the peace of mind we all desire.