Why your Social Security check may be smaller than expected: How to fix common payment mistakes

When planning for retirement there are a number of factors to take into account in order to ensure that you can live out your golden years in comfort. Social Security is designed to be one of the three pillars to maintain your standard of living, along with pension income and assets, investments and personal savings.

However, a majority of Americans are either unsure or lack knowledge about key aspects of the program like what their full retirement age is or how it will fit into their retirement plan according to surveys by the Social Security Administration and other institutions. Here’s a quick rundown on how you can get the most out of Social Security.

Full retirement age (FRA), and what should you know

According to a survey by Allianz in 2025, nearly half of Americans (46%) worry about maximizing their Social Security income in retirement. Even fewer actually have a plan for how they will use the federal benefit program in their retirement.

Sadly, this “lack of understanding could lead to Americans missing out on strategically using the benefit as part of their overall retirement strategy,” warns Allianz Life.

“Social Security is a key part of a retirement strategy – the benefits provide guaranteed income for a lifetime that increases with cost-of-living adjustments and is tax advantaged. But, taking full advantage of the program to best suit your retirement strategy involves careful planning and making informed decisions. Without a plan for Social Security, a retirement strategy is not complete,” said Kelly LaVigne, Allianz Life VP of consumer insights.

One key aspect is knowing your full retirement age (FRA), when you will be eligible to receive the full amount that you are entitled to when you claim your Social Security retirement benefit. While you are eligible to claim Social Security Old Age benefit at 62, the earlier you claim prior to your FRA, the smaller your benefit will be permanently.

What is your full retirement age?

Like today, Social Security was facing a funding problem in the 1980s. In order to avoid insolvency, legislation was enacted to raise the full retirement age and tax a portion of recipients benefits when certain income thresholds were surpassed.

The full retirement age was gradually raised from 66 to 67 for those Americans born between 1955 and 1959. Americans born in 1960 and later will reach their FRA when they are 67 and one month old.

Be aware that if you were born on the first day of the month, the SSA uses the previous month to calculate your FRA. Similarly, if you were born on January 1, they’ll calculate it from December of the previous year.

The Social Security Administration awards those who wait to claim benefits beyond their FRA. For every year that you hold off claiming your benefit, the maximum amount you will be eligible for increases 8% until you hit 70.

How does the Social Security Administration (SSA) define FRA based on years worked?

It’s also important to know that in addition to your birth year, the SSA considers the number of years you have worked and paid taxes when calculating your FRA.

While you only need 10 years’ worth of credits to be eligible to claim Social Security, as well as being at least 62 years old, the SSA uses the average of your 35 years with the highest income to calculate your Social Security retirement benefit. In other words, you should work at least 35 years to qualify for 100% of Social Security payments.

How to know if you should apply for early retirement at 62?

To know if applying for early retirement between 62 and 67 is a good idea, keep in mind that this will permanently reduce your payments. The SSA allows beneficiaries who have applied for early retirement to cancel it within the first 12 months and return to work to fulfill 100% of the required time to qualify for full payments. If you return to work within the first 12 months of early retirement, you’ll need to repay any money received from Social Security.

Each beneficiary’s personal circumstances are another factor to consider when applying for early retirement. If your financial situation is strong, with profitable investments and sufficient savings, applying for early retirement may be the best option to enjoy this new phase of life.

Another case noted by experts involves health. People with health issues who don’t expect a long lifespan are another group who may benefit from requesting early benefits.

The U.S. government emphasizes the importance of being well-informed, as many citizens may be losing a substantial amount of money by not knowing the rules about retirement, which affects the purchasing power of the population. Remember that you can always check the phone numbers and contact methods with the Social Security administration to solve your doubts.

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