5 Social Security Moves That Are the Hardest to Reverse Once You Make Them

Social Security is one of the most looked-forward-to, but also easily misunderstood, senior benefits. A single checkbox or timing plan can limit monthly benefits checks for life, affecting both you and your spouse in old age.

Yes, there are a few opportunities to course-correct, but they are narrow, time-limited, and sometimes very impractical. They may even require paying benefits back, something no one wants to do.

Here are some of those riskier retirement choices that, if not taken seriously, can haunt you forever. Get familiar with them, so your Social Security plan is a one-shot effort without any costly U-turns.

Find Out: 14 benefits seniors are entitled to but often forget to claim

1. Claiming benefits as early as 62

People can start retirement at age 62, but that’s the earliest age and not always recommended. If you file for benefits, your monthly check can be significantly lower than if you had waited for full retirement age (FRA).

For those born in 1960 or later, FRA is 67. But if you take retirement a full five years early, your monthly benefits can be reduced by 30% each and every month for the rest of your life.

Waiting until FRA gets you access to your full 100% of benefits. It’s not discounted. It’s yours because you earned it.

Can you reverse it? You technically get a one-time “reset” to withdraw your application within 12 months of starting benefits. You must pay back every dollar you and family members received, so you can start over later as if you never took benefits in the first place.

If you wait longer than a year, you’re stuck with the decision. There are no do-overs.

Who really has the cheapest auto insurance in your area? Check your zip code here.

2. Waiting past full retirement age (or longer)

Claiming too late is almost as bad as claiming too early. Here’s why:

After FRA, benefits continue to grow as delayed retirement credits until you reach age 70. If you wait that long, you can boost your check size, but only if you live long enough to make it worthwhile.

This is a hard one to judge, because no one can see into the future. Unlike other “irreversible” decisions, it’s one of opportunity cost. By dying earlier than expected, you forfeit all those years of potential benefits you could have used, enjoyed, and shared with loved ones.

Retirees need to realistically judge their health and expected life expectancy, then take retirement at an age that makes sense for them.

Also, if you delay without realizing you could have collected since the FRA, you can only claim up to six months of back pay — not the full years you missed out. There’s no way to go back to age 75 and say, “I wish I’d started at 67, please send me those missing checks.”

3. Misjudging spousal and survivor benefits

Married couples may see twice the benefits, but also have twice the opportunities to make a wrong move. One area where regret can come into play is with spousal benefits, which are based on the higher earner’s wage record.

If the higher earner dies first, that survivor benefit kicks in, usually equal to the larger of the two checks. The smaller check disappears altogether.

The issues come when the higher earner files early, as it ripples into what the surviving spouse can receive. The survivor can’t later claim a higher amount based on what the benefit would have been if the higher earner had waited.

If both spouses file early, there’s no way to retroactively change that combination after one spouse passes away.

Retire like the rich: 14 ways you could build wealth in your 50s.

4. Ignoring the earnings test while working

A retirement earnings test works like this:

If you claim benefits before the FRA and continue to work, you get to keep all of your income and the Social Security payment. That is, until you earn up to a particular threshold. Earn too much, and Social Security will withhold some of your benefits.

These earnings aren’t lost, but they do change how future payments look. Withheld months are often recomputed to increase your benefit later.

People sometimes claim early for a variety of reasons while still working. They may think they need the income or need the activity to keep from being bored. But it’s shocking when the benefits get reduced.

The mix of withheld benefits and later adjustments can’t be undone, and it also makes it difficult to budget for how big a check may be down the road.

5. Following bad advice

There’s so much to read online about retirement planning. But just because it’s published doesn’t make it right for you. Many one-size-fits-all plans, like “always retire at 62” or “wait as long as you can,” ignore the challenges and goals you have in your own life.

Depending too much on a friend’s story or some forum post online can lead to real, expensive consequences. Once you lock in a claiming age, you’re often stuck with your choice. Make sure it’s done with all the understanding of your unique situation, and enlist the help of a retirement pro if necessary.

Bottom line

With so many decisions to make in retirement, Social Security choices can feel like yet another distraction. The irreversible nature of it means you can’t afford to miscalculate, and choices are effectively permanent once set in motion. Yes, you can do over within 12 months in some cases, but few people would feel good about paying back all the benefits received until that point.

With a smaller check for you or your spouse at stake, it’s best to make the right moves the first time. A quick run of different retirement ages through the Social Security Administration’s online calculator may be all that’s needed to get a better idea of next steps.

More from FinanceBuzz: