If you're planning to sign up for Social Security in 2024, it doesn't necessarily mean you're planning to retire in 2024. It's more than possible to collect Social Security while also collecting a paycheck from work. Even if you intend to continue holding down a job, you may decide that you'd like to file for Social Security so you can use the money to do things like travel or renovate your home to make it more comfortable.
Whatever your specific plans for the new year, if you're pretty convinced that one of them is claiming Social Security, you'll want to make sure you're putting yourself in a strong position to get the most out of your benefits. To that end, here are a couple of key tasks worth tackling now.
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1. Correct mistakes on your earnings history
If you're in your mid-60s or later, chances are that the Social Security Administration (SSA) has been mailing you copies of your annual earnings statements for years. If you didn't know what those were, you may have tossed them out without paying attention. (Hopefully, though, you ran them through a paper shredder first since they contain personal information.)
Actually, those earnings statements are very important because they contain not just an estimate of your monthly Social Security benefits, but a summary of your wages, as well. And the latter is something you really need to look at carefully.
Social Security benefits are based on personal earnings. So if you have income that was underreported, it could result in smaller monthly paydays from Social Security during retirement.
If you have no idea where those earnings statements are, don't panic. All you need to do is create an account on the SSA's website and access them there. But do take that step because if you spot a mistake on your reported wages, correcting it could mean setting yourself up with more Social Security for life.
2. Strategize with your spouse to come up with a filing plan
It may be that both you and your spouse are entitled to monthly benefits from Social Security. And maybe you're both planning to file for them in the new year. Or maybe only one of you intends to file.
Either way, if you haven't done so already, have a conversation with your spouse where you map out a joint filing strategy. You may decide that you'll have your spouse claim their benefits in January, while you'll sit tight until closer to the end of 2024. Delaying your filing by almost a year could result in a significant boost if you're able to wait.
The more money you're able to get out of Social Security, the easier it might be to manage your expenses once your retirement becomes official. So take the time to tackle these important moves sooner rather than later. They could spell the difference between enjoying more money in retirement on a permanent basis, versus resigning yourself to living on less.
