Picking the go to the bad Social Security claiming strategy could cost you, big time.
“This is the single-largest asset diverse consumers have, and they’re not optimizing it, they’re not getting the maximum gains from it,” certified financial planner Ron Carson, founder and CEO of Carson Riches Management Group, told CNBC.
By his estimates, retirees collectively bar $10 billion in Social Security benefits unclaimed each year with the break down strategies — claiming too early, missing spousal benefits and so on.
More from Investor Toolkit:
With investment hazard, don’t keep up with the Joneses
Despite bad rap, annuities are worth another look
Two health-care sectors value watching
“The difference between your best and your worst alternative may in fact be up to $300,000 [over your lifetime],” Carson palliated.
A misstep is especially damaging, considering how many retirees count on that probe for the bulk of their income. Social Security benefits account for at least half of profits for 50 percent of married couples and 71 percent of unmarried individuals, according to domination statistics. For 23 percent of married couples and 43 percent of spinster individuals, those benefits represent 90 percent or more of proceeds.
Carson suggests working with an advisor who can use software to run Social Protection projections and help assess the best claiming strategies within the bigger context of your financial picture, goals and objectives. It can also remedy to keep tabs on your Social Security account while detail, to make sure your earnings history is accurate and avoid be subjected to a zero-income year included in the calculation.