Americans Are Losing $180,000 in Social Security — Are You Making This Costly Mistake?

In the United States, it can cost a lot to make hasty choices about Social Security. It might seem like the best idea to retire as soon as possible, but many people lose thousands of dollars every year because they don’t plan ahead and make a strategy.

Lynn, from Her Second Half, makes it clear: if you don’t plan well for retirement, it could cost you up to $180,000 in Social Security benefits over the course of your lifetime. Her advice is especially for people who are thinking about getting benefits at age 62 without thinking about how it will affect them in the long run.

Lynn, who works as a Social Security check expert, says it’s not enough to pick any age; you have to know how the game is played. She explains in one of her most watched videos that the key to not losing money is to know how the system works and what we can do to get the biggest check every month.

Why not stop working when you turn 62?

Lynn says something that a lot of people don’t want to hear: even if you can, don’t quit at age 62. After a long career, it may seem like a good idea to quit your job, but this choice often means that your monthly check is much smaller.

You will get less Social Security for life if you apply for it at age 62, because that’s before you hit full retirement age. Lynn says that this amount difference could lead to a loss of up to $180,000 over the next few decades.

That doesn’t mean it’s always a bad idea to retire at 62. In some situations, it might be necessary or even smart to do so. It’s important for everyone to look at their own finances and jobs and be sure they understand how their choice will affect their long-term pay.

Lynn says that the difference between making a smart choice and moving without thinking can mean much smaller checks for 20 or 30 years. That’s why it’s important for every American to know how the system works and plan ahead.

How can you get the most out of your Social Security?

There are three things that have been shown to work for people who want to get the biggest Social Security check possible. These are simple plans, but you need to stick to them and plan ahead:

• Delay retirement: The monthly amount you get from Social Security goes up by about 8% for every year you wait to apply after your full retirement age (between 66 and 67). That extra weight can make a difference by the time you are 70 years old.
• Work for at least 35 years: your benefits will be based on the 35 years when you made the most money. You will get a smaller check in the end if you have years without work or low pay. This is because your average will go down.
• Earn more while you’re working: Increasing your income over the years not only makes your current quality of life better, but it also has a direct effect on your Social Security benefit by making you earn more on average.

Lynn also says in her movie that learning about Social Security should be a part of planning for retirement. You can avoid making mistakes that cost a lot of money by learning the basics, modeling different situations, and talking to experts.

In the end, everyone has a unique story and set of situations. But one thing is for sure: the best ways to make sure you don’t lose any of the money you’ve worked hard for are to learn about it and plan ahead.

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