2. Forgetting to examine your annual earnings assertion
Every year, the Social Safety Administration (SSA) points an incomes assertion that may summarize your taxable wages for the yr and provide you with an estimate of the month-to-month profit it’s possible you’ll be in line for when you attain FRA.
It is essential that you simply evaluate your earnings assertion for errors. A mistake that works towards you, like a decrease wage than what you truly earned, might end in a decrease retirement profit. In the event you’re 60 or older, your earnings assertion will come within the mail. In any other case, you will have to create an account on the SSA’s web site to entry it there.
3. Not planning for additional payroll taxes
Even in the event you’re nowhere near claiming Social Safety, you will nonetheless be impacted by this system — specifically, within the type of the payroll taxes your wages will probably be topic to. Every year, there is a restrict on the extent of wages Social Safety taxes apply to. In 2020, earnings of as much as $137,700 have been taxed. In 2021, nevertheless, that threshold is rising to $142,800.