For tens of millions of American seniors, when it comes to a comfortable and relaxing retirement that could stretch on for decades, every single dollar is considered precious.

That’s why, according to financial experts, it is very important to make the right decisions at the right time regarding one’s Social Security benefits—as any mistake could end up costing tens of thousands of dollars in the years ahead.

But to be on the safe side and guarantee some financial cushion in their later years, some are planning their retirements without Social Security benefits in mind.

“I have a detailed plan regarding how much income I’ll need in retirement and how much money my savings will provide. When I made my plans, I didn’t count on money coming in from Social Security,” writes personal finance expert Christy Bieber at The Motley Fool.

“If I don’t factor Social Security in when determining how much income my nest egg must provide for me, any money from my retirement benefits will be extra. I’d rather have this financial cushion in case I’m faced with surprise expenses as a senior, such as healthcare costs that are higher than I’m anticipating or a need to provide more financial support for my children,” she continues.

Tax Implications

It surely seems to be a smart move, but Lauren King, managing partner at Compass Advisors, also notes that one always needs to be aware of tax implications when building up their nest egg.

“The biggest expense most people will pay in their lives is their tax bill [so] implementing strategies to mitigate your current and long term tax bill will greatly help with wealth accumulation,” she told GOBankingRates.com.

“In current years, taking advantage of qualified retirement plans through your employer, for example a 401(k) plan, will reduce your current year taxes. If you are self-employed there are many opportunities to greatly save on current year taxes through putting a retirement plan in place,” she adds.

The Future of Social Security

Another key reason why Bieber decided to ignore Social Security when planning her retirement is due to the fact that she understands that she has no control over what will happen to the benefits in the years ahead.

“The reality is, the amount of future Social Security benefits that I’ll receive—and the timeline for when I can claim them—is out of my control,” she claims.

“While benefits won’t stop even if Social Security’s trust fund runs dry, it’s entirely possible lawmakers will make changes to the program because of the trust fund’s financial trouble. A law change could alter the age when you can claim your full benefit. And if lawmakers take no action, a 22 percent benefits cut could occur automatically in the future when the trust fund money runs out and benefits can be paid only from current revenue,” she concludes.

Ethen Kim Lieser is a Washington state-based Science and Tech Editor who has held posts at Google, The Korea Herald, Lincoln Journal Star, AsianWeek, and Arirang TV. Follow or contact him on LinkedIn.

Image: Reuters