Figuring out the most “financially optimal” time to claim Social Security is a complicated equation that involves hundreds of variables; to complicate matters, hidden deep within Social Security’s Handbook are a few “gotchas” that can reduce your benefits forever. To make sure you don’t shortchange yourself, Peter with Richon Planning and Erin Kennedy are breaking down the top five:
1. If you take two benefits at once, you lose one of the two
2. If you take your retirement benefit at the same time as your spousal or divorced spousal benefit, your retirement benefit will generally wipe out your spousal or divorced spousal benefit
3. Taking benefits before full retirement age leads to permanently reduced retirement benefits
4. You can contribute to Social Security your entire working life and receive nothing whatsoever in extra benefits
5. When you claim, can cost you big bucks
