Avoid These Two Social Security Mistakes

1. Not knowing your full retirement age

The monthly Social Security benefit you're eligible to collect in retirement is centered on your personal earnings history. You’re allowed to claim that benefit in full once you reach full retirement age, or FRA.

FRA centers on your year of birth, as follows:

Year of Birth | Full Retirement Age

1943-1954 | 66

1955 | 66 and 2 months

1956 | 66 and 4 months

1957 | 66 and 6 months

1958 | 66 and 8 months

1959 | 66 and 10 months

1960 or later | 67

It has happened where people claim Social Security without first knowing their FRA -- and carelessly lessen their benefits in the process. If you want to avoid that outcome, ensure that you learn your FRA ahead of time.

2. Assuming you must claim benefits when you sign up for Medicare

Many seniors enrolling in Medicare once they reach age 65, since that's the age of eligibility. You may be inclined to sign up for Social Security at the same time. However, many people fail to know that you do not have to do so.

It's possible to enroll in Medicare and hold off on claiming Social Security. Provided that FRA doesn't begin until after age 65, waiting to file for benefits could mean dodging a reduction in your monthly income.

Now you may have heard that once you're on Medicare, your Part B premiums will be pulled off from your Social Security benefits. Although this is true it’s important to note that you can also pay those premiums directly if you haven't filed for Social Security yet. Medicare will then take your money from another source, like your bank account or get a quarterly bill.

Social Security could end up providing you with quite a bit of retirement income, so it's important to file for it in a manner where you receive the best out of the deal. It's also a good idea to stay away from these mistakes, as they could leave you with less income for the rest of your life.