Retirees warn: Don't make these 9 Social Security mistakes

Millions of Americans rely on Social Security as the foundation for their retirement. Some 90% of people ages 65 and older rely on it. And for many, these benefits make up half or more of their income.

But the rules are complex, and one small mistake can cost you thousands over your lifetime. You get just one after filing to change your mind. After that, your benefits are largely locked in.

Getting it right matters. Here are nine of the most costly Social Security mistakes retirees say to watch for — and how to steer clear of them.

1. Filing early without doing the math

Nearly a third of retirees start collecting benefits at age 62 — the soonest they can. But claiming early permanently reduces how much you’ll receive by as much as 30%.

For example, if your full retirement age benefits at 67 is $2,000 a month, filing at 62 cuts that to around $1,400. That $600 monthly difference costs you around $144,000 over 20 years. Unless you absolutely need the income earlier, you’ll come out ahead by waiting.

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2. Not knowing when you can claim full benefits

Your full retirement age — or FRA — is the age at which you’re able to collect your full Social Security benefit. But it’s not the same for everyone.

If you were born in 1960 or later, your FRA is age 67. For earlier birth years, your FRA ranges from 65 to a very specific 66 and 10 months.

The mistake many people make is assuming their FRA is age 65 — and find they’re unpleasantly surprised when benefit checks are lower than expected. Check your FRA on SSA.gov before making any filing decisions.

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3. Claiming benefits too soon

For every year you wait between your FRA and age 70, your benefit grows by 8%. That’s a solid reward for patience.

If you can rely on other income until your FRA — from savings, part-time work, consulting or a pension — delaying filing until you’re 70 can add hundreds to your monthly check. We’re talking tens of thousands of dollars over a long retirement.

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4. Ignoring spouse and survivor benefits

Social Security isn’t only about your employment history. If you’re married at least a year, divorced after at least 10 years or widowed, you may qualify for spousal or survivor benefits, provided you meet age and other requirements.

Spouses can be entitled to up to 50% of the higher earner’s FRA — for a widow or widower, up to 100%. Not taking advantage of these benefits leaves money on the table that you two earned together.

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5. Getting caught by the earnings penalty

If you claim benefits before full retirement age and continue working, it triggers what’s called an earnings test. For 2025, that earning threshold is $23,400 — above that, and the SSA withholds $1 for every $2 you earn.

If you reach your FRA in 2025, that earnings limit jumps to $62,160 for the months before you reach it, and the penalty drops to $1 for every $3 earned over it.

The good news? Once you hit your FRA, the SSA recalculates your benefits and credits back what it withheld. There’s also no more limit on what you can earn.

Still, the temporary cut in benefits can be a surprise that disrupts your monthly cash flow if you aren’t prepared.

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6. Not catching errors in your earnings history

Your Social Security benefits are based on your highest 35 years of earnings — and they don’t have to be consecutive years. Years you don’t work show up as $0, dragging down your average. Employer mistakes, name changes and unreported earnings can slash your monthly payments.

Even if retirement is far on the horizon, it pays to set up your Social Security account early. Through your account, you can access not only your official benefits statement, but also your full earnings history going way back to when you first started working.

Check your official earnings history for mistakes or errors. Spot something wonky? Contact the SSA immediately at 800-772-1213, file an online support form or visit your local SSA office to report it. It’s much easier to correct issues now than attempting to fix it when you’re filing a claim.

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7. Overlooking life expectancy

Many people file for Social Security benefits early because they don’t think they’ll live long enough to benefit from waiting. Others delay too long without considering the health risks that come with aging.

Yet life expectancy has increased dramatically: A 65-year-old man today can expect to live about 18 more years, and a woman more than 20 years.

If long life runs in your family, delaying benefits could be worth it — but if your health is poor, claiming earlier might make sense. The key: Make an informed decision, not a guess.

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8. Getting blindsided by taxes

Up to 85% of your Social Security benefits could be taxable, depending on your income. The IRS uses a simple formula to determine whether your Social Security benefits are taxed or not: Add 50% of your Social Security benefits to any other income you earned throughout the year.

For single filers, the threshold is $25,000 in combined income. For couples, it’s $32,000.

Being strategic about when you claim Social Security and when to tap into your standard and Roth IRAs, 401(k)s and other retirement accounts can reduce the tax bite — and put more money in your pocket.

It’s also useful to talk with a financial advisor or tax professional who has experience with pensions and retirement accounts to make sure you’re only paying the taxes you owe.

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9. Treating Social Security as your entire plan

Social Security was never meant to cover all of their retirement expenses. It’s designed as a financial foundation, and not the whole floor.

On average, it replaces about 40% of the income you were making before retirement.

Here’s what that looks like: If you were earning $70,000 before retirement at your 9 to 5, Social Security might replace only $28,000. Without savings, investments or other income, it’s difficult to close that $42,000 gap.

The bottom line: Social Security is crucial support for the nation’s retirees, but it should be only part of your retirement plan.

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You’ve earned it — now don’t leave money behind

Your Social Security benefits are permanent, so make them count. Take time to understand your options, confirm your official earnings and calculate the true cost of delaying.

The Social Security Administration won’t do the work for you. But with the right strategy, you can maximize your benefits for a healthy, fulfilling rest of your life. After decades of work, you deserve that.

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About the writer

Michael Kurko is a finance writer and editor who covers investing, real estate, personal budgeting and financial literacy. His expertise has been featured in FinanceBuzz, The Balance, Investopedia, U.S. News & World Report and Forbes Advisor, among other top financial publications. In addition to his work in finance, Michael is also a freelance book editor and fiction writer. He strives to make complex money topics clear and approachable so readers can make informed decisions and build lasting financial confidence.

Article edited by Kelly Suzan Waggoner

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