The 3 Big Surprises Retirees Face When They File Social Security
Confused by Social Security?
Even smart, financially savvy people are surprised by what happens when they actually file. Here are the three surprises that catch most retirees off guard.
1. “My Benefit Isn’t the Same as the Number on My Statement!”
Your statement assumes you keep working at the same income until you file. If not? Your benefit can be much lower.
2. The IRS Counts Half Your Benefit as Income
This always shocks people. Half of your Social Security benefit counts toward provisional income and IRMAA. It hits retirees who ignore tax coordination.
3. Survivor Benefits Aren’t Automatic
Survivor filing has rules and timing windows. Errors can reduce the benefit for life.
About Author
Ray R. Harris
Ray R. Harris, RSSA®, partners with tax and legal professionals to provide specialized Social Security claiming analysis for high-net-worth clients aged 58–70. A former executive with an MBA and background in Finance, Ray mitigates liability for his partners by ensuring their clients optimize spousal benefits, tax efficiency, and lifetime income.
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