Planning to claim Social Security in the near future? Be careful what advice you take.
“Few retirement decisions are as critical, or as easy to get wrong, as when and how to you’re your Social Security benefits,” writes Liz Weston.
The rules are so convoluted that sometimes employees don’t quite understand them. They’re supposed to educate, rather than advise, yet stories abound of people filing for Social Security based on information that’s not in their best interests.
In an article called “Don’t let Social Security steer you wrong,” Weston shares the story of a man who was eligible for a now-defunct rule called a “restricted application.” The person who processed his application outright ignored the man’s request and signed him up for plain old retirement benefits instead.
That guy was able to fix things. Not everyone is so fortunate: A report from Social Security’s Office of the Inspector General estimates than 9,224 widows and widowers over the age of 70 lost out on $131.8 million because they didn’t get the right advice.
Feeling a little nervous right now? I certainly am.