Retirement Social Security

The Costly Social Security Mistake Many Boomers Don’t Realize They’re Making

It could reduce your monthly checks by up to 30%.

By Lee Huffman

Edited by Laura Hohenstein

Updated Feb. 4, 2026

Add Us On Google

Many Baby Boomers feel confident they did Social Security right. You worked for decades, paid into the system, and made what seemed like a sensible decision when it was time to claim. For retirees, that confidence is exactly what makes it one of the most surprising retirement mistakes that's easy to overlook.

While claiming Social Security benefits early may seem like the right choice because you can't predict the future, you're permanently locking in lower benefits for the rest of your life. Here's what you need to know about when to claim benefits and the impact it can have on your retirement income.

Get a protection plan on all your appliances

Did you know if your air conditioner stops working, your homeowner’s insurance won’t cover it? Same with plumbing, electrical issues, appliances, and more.

A home warranty from Choice Home Warranty could pick up the slack where insurance falls short.

For a limited time, you can get your first month free with a Single Payment home warranty plan.

Get a free quote

Claiming too early without understanding the tradeoffs

The most costly Social Security mistake many Boomers make is claiming benefits early without fully understanding how much it can reduce lifetime income. "Early" generally means claiming before your full retirement age, which is between 66 and 67 for most Boomers, depending on your birth year.

While Social Security allows you to claim as early as age 62, doing so permanently reduces your monthly benefit. What many retirees don't realize is that this reduction lasts for life, and it is almost impossible to unwind this financial decision. Claiming early affects more than just your own check. It also impacts survivors' benefits for your spouse.

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

Why this happens so often

This mistake can happen for a variety of reasons, such as an unexpected retirement, financial stress, or a lack of understanding of the decision's consequences.

You might claim early because you need income, assume Social Security is "breaking even" either way, believe taking benefits early protects you if you die sooner, or you underestimate how long retirement might last.

Social Security decisions are often made during major life transitions, like retirement, health changes, or job loss. In these situations, many people choose short-term stability without fully understanding how those decisions affect long-term planning.

How early claiming permanently reduces your benefit

If you claim Social Security at 62, your monthly benefit can be reduced by as much as 30% compared to waiting until full retirement age. When you are able to delay filing for Social Security past full retirement age, your monthly check grows by 8% per year until age 70. That means the difference between claiming early and waiting can easily be thousands of dollars per year for the rest of your life.

Once you claim, those reductions are generally locked in. They also influence survivor benefits for a spouse, inflation-adjusted increases each year, and your total lifetime income from Social Security.

Get a protection plan on all your appliances

Did you know if your air conditioner stops working, your homeowner’s insurance won’t cover it? Same with plumbing, electrical issues, appliances, and more.

Whether or not you’re a new homeowner, a home warranty from Choice Home Warranty could pick up the slack where insurance falls short and protect you against surprise expenses. If a covered system in your home breaks, you can call their hotline 24/7 to get it repaired.

For a limited time, you can get your first month free with a Single Payment home warranty plan.

Get a free quote

Real-life scenarios that show how losses compound

Imagine you're eligible for $2,000 per month in Social Security benefits at full retirement age. If you claim at 62, you lose 30% of your benefits, dropping your Social Security checks to $1,400 per month. By claiming benefits early, you lose $600 every month, which comes out to $7,200 per year. For seniors living on a fixed income, that is a huge loss in spending power.

Over a 25-year retirement, that $600 per month in lost Social Security benefits comes out to roughly $180,000. When you factor in lower raises for annual cost-of-living adjustments (COLA), the total amount of lost benefits is even higher.

Married couples feel the effects even more. When the higher-earning spouse claims Social Security benefits early, the surviving spouse's benefits are also impacted if they use the deceased spouse's benefits instead of their own.

Longevity also plays a role. Many Boomers underestimate how long they'll live, but government data show that the average 65-year-old man can expect to live past their 83rd birthday. Meanwhile, an AARP study found that if you live past age 79, you're better off waiting to claim benefits until full retirement age.

Bottom line

Claiming Social Security early without understanding the long-term tradeoffs is one of the most expensive retirement mistakes Boomers make. It is also one of the easiest to miss because expert opinions vary on the best age to start Social Security benefits. The decision feels small in the moment, but its effects can last for decades. The good news is that understanding the impacts can help you develop your retirement plan and help you avoid retirement mistakes that can impact you and your spouse for decades.

More from FinanceBuzz: