2023-09-13 18:08:04
There are many people who They still continue to believe some things that are not so true related to Social Security. Below, we share three of the best known.
Myth 1: Social Security benefits are based on your last 5 years of income
The reality is that Social Security benefits are based on the highest income you have had in 35 years.
This means that Social Security calculates your monthly income for the 35 years in which you earned the most.
If it turns out that you accumulated less than 35 years of income by the time of retirement, Social Security will do its calculations by putting a zero for each year without income.
Therefore, if you work more than 35 years you can increase your benefits, since each additional year with higher income that you have will replace a year of less income, or one that has zero, in the calculation.
Myth 2: You should claim Social Security benefits as soon as possible
The reality is that it would not be the best financial decision if you claim Social Security benefits at age 62 or older.
If you claim benefits before reaching full retirement age, which varies depending on the year you were born, the amount of money you will receive each month will be reduced forever.
However, If you claim benefits after full retirement age or later, your benefits will increase until you turn 70.
Myth 3: Medicare premiums don’t affect your Social Security benefits
Medicare Part B premiums are generally deducted from your Social Security benefits.
This means that the amount of money you receive in Social Security benefits each month may be less than your full benefit amount due to the Medicare Part B premium deduction.
Keep reading:
· Social Security Checks: the amount of COLA increase for 2024 depending on the type of beneficiary
· Three states that will give stimulus checks in September
· Social Security will send payments of up to $4,555 in 8 days
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