4 Things To Do Right Now To Safeguard Your Social Security
Written by
Nicholas Morine
Edited by
Amen Oyiboke
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
If you’re feeling a bit worried about retirement, particularly your Social Security benefits, you certainly aren’t alone. Given the ongoing macroeconomic turbulence and uncertainty, many Americans are looking toward their golden years with at least a bit of trepidation.
However, being prepared — and safeguarding your Social Security benefits — against errors, improper withdrawals, damaging taxes, and scams or theft is vital to ensuring your financial health as you age.
1. Checking Your Earnings Record Through Your SSA Account
This one is simple enough, but often overlooked: You should immediately log into your Social Security Administration (SSA) account to verify each year’s wages, fixing any errors present to ensure accuracy. Doing so could mean that you’re not being shortchanged in terms of your future benefits.
Your Social Security statement is the document you’re looking for, and this can either be accessed online or requested by mail.
2. Watch Out for FRA (Full Retirement Age), as Well as Potential Medicare Penalties
A two-parter: First, be sure to understand your full retirement age (FRA) as it pertains to your upcoming Social Security benefits. For most people eyeing retirement at this point, that age is 67 — for those born in 1960 or later — but could be as early as 66.
Retiring at age 62 rather than one’s FRA can reduce benefits by as much as 30%, with spouse’s benefits being slashed by as much as 35%.
Secondly, consider Medicare coverage as part of your Social Security planning. Your chance to sign up typically begins when you’re about to hit 65 — the three months before your birthdate, and the three months after the month you turn 65 are referred to as your initial enrollment period.
Miss this, and you may have to wait to sign up, and could face a monthly late enrollment penalty for as long as you have Part B coverage. Other penalties are also possible, so be sure to consult Medicare.gov on the matter.
3. Scammers and Your Social Security Benefits
The Office of the Inspector General is clear: Scammers are increasing in both volume and intensity, and they’re targeting Americans’ Social Security benefits.
Whether they claim to be government employees or representatives of major financial institutions, remember that Social Security Administration staff will never threaten, pressure or harass you. If you have any doubt about the legitimacy of a call or email, end the conversation immediately and contact the SSA — or your bank, if that’s the supposed source — using a verified, publicly listed number to confirm the details.
4. Power of Attorney vs. Representative Payee: Know the Difference
According to the SSA, more than 8 million Americans receiving Social Security benefits or Supplemental Security Income (SSI) payments require assistance in managing their money, for one reason or another.
If this situation applies to you or a loved one, be aware of one common misconception: Being granted power of attorney (POA) is not enough to be charged with managing another individual’s benefits — for that, you’ll need to be appointed as a representative payee by the SSA.
“We thoroughly investigate those who apply to be representative payees to protect the interests of Social Security beneficiaries. This is because a representative payee receives the beneficiary’s payments and is given the authority to use them on the beneficiary’s behalf,” a SSA fact sheet detailed.
More From GOBankingRates
