A recent CNBC post discusses five common myths about Social Security retirement claiming and the truths behind them.
- Myth 1: Claiming early to get the most benefits before Social Security runs out of money. Truth: Waiting to claim will result in higher benefits and more income security.
- Myth 2: Using the break-even age to decide when to claim. Truth: The break-even age does not account for other factors such as longevity risk, spousal benefits, or taxes.
- Myth 3: Claiming early to get the benefit of a high cost-of-living adjustment. Truth: Cost-of-living adjustments are applied to projected benefits regardless of when you claim.
- Myth 4: Social Security benefits are not taxed. Truth: Depending on your income, up to 85% of your benefits may be subject to federal income tax.
- Myth 5: Following what others did or relying on Social Security offices for advice. Truth: The best-claiming strategy depends on your personal circumstances and goals, and you may need professional guidance to find it.
Read the full article here.