6 Steps Retirees Should Take With Their Social Security Benefits in April
Key Points
It's up to you to update your information with the Social Security Administration.
It's easy to make updates online.
If you find that your monthly benefits are no longer sufficient, it may be time to adjust your retirement withdrawal strategy.
- The $23,760 Social Security bonus most retirees completely overlook ›
Just as springtime is the perfect time to air out the house and get rid of cobwebs, it's also a good time to check up on Social Security benefits. As nice as it would be to believe that the Social Security Administration (SSA) never gets it wrong or that you never allow details to fall through the cracks, nobody can make such a claim.
If you're retired or nearing it, take these steps in April to ensure you won't spend the rest of the year wondering if you missed an important detail related to Social Security.
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1. Check your Medicare premium deductions
Review your Social Security statement to confirm that the correct premium amount is being withheld from your Social Security benefits for Medicare Part B (and Part D if you're not paying your insurer directly). While you're there, ensure any income-related monthly adjustment amounts (IRMAAs) are accurate, and that you're not being overcharged due to outdated income information.
If you're paying an IRMAA, it's based on your tax return from two years ago. If you've undergone significant changes since that time -- including retirement, divorce, death of a spouse, or job loss -- your IRMAA could be reduced or eliminated.
2. Update your mySocialSecurity page
Log in to the SSA site and view your mySocialSecurity page. Verify that all information is correct, including your current contact listing and direct-deposit information.
3. Review your COLA adjustment
Check the benefits you've received so far this year to ensure that the cost-of-living adjustment (COLA) has been correctly applied to your benefits.
4. Take a look at taxes
Tax season is a great time to decide if you need to adjust the tax withholding from your benefits for the coming year. If you decide to change your voluntary withholding, use Form W-4V. The last thing you want to do is get behind on your taxes in retirement.
5. Review your beneficiaries
Check all your financial accounts to ensure your beneficiaries are who you want them to be. If a beneficiary has passed away, you'll need to add another beneficiary. If you're recently divorced, you may want to remove your ex-spouse as a beneficiary.
6. Reevaluate your budget
Use April as a quarterly checkpoint to decide whether your Social Security benefits are meeting your financial needs. If not, it may be time to adjust your retirement withdrawal strategy.
If you think April is a bad month because you're busy with your tax return, consider this: There's a great deal of overlap between the documents you need to complete your tax return and the documents that involve Social Security payments. You might save time by taking care of both tasks at once.
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