Retirement Social Security

How a Social Security Mistake Cost Some Retirees $113.8 Million in Benefits

Social Security failed to provide the right information, and thousands of retirees lost millions in benefits.

By Christy Rakoczy Bieber , Edited by Laura Hohenstein

Updated June 7, 2026

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The Social Security Administration pays out different kinds of benefits to retirees, including Social Security retirement benefits, spousal benefits, and survivor benefits.

There are a lot of complexities in how these benefits interact with each other. It's important to take those complexities into account when you're creating your retirement plan.

Unfortunately, the Social Security Administration itself isn't really doing a very good job of helping with that. In fact, a recent report from the Office of the Inspector General found that the Social Security Administration had made some big mistakes that ended up costing widows and widowers an estimated $113.8 million in additional benefits they should have had.

Here's what happened, and how to protect yourself from similar errors.

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How Social Security's mistakes cost retirees millions

The Office of the Inspector General conducted an investigation recently into whether the Social Security Administration was providing the right advice or paying the right benefits to widows and widowers. Unfortunately, the OIG discovered the Administration most likely was not doing what it should have.

According to the OIG report, Social Security Administration employees failed to document in the system that they had told 37 widows and widowers they had the option to only claim survivor benefits and delay filing of Social Security retirement benefits.

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The staggering cost of this mistake

Based on this oversight, the OIG estimates that 5,367 widow(er)s could have made a different choice regarding claiming their retirement benefits if they had been adequately informed.

Since this did not happen, they lost out on an estimated $113.8 million in additional benefits they could have been eligible for.

Retirees paid the price for Social Security's oversight

The Office of the Inspector General found that this major oversight could potentially undermine trust in the program.

Specifically, the report said: "Providing beneficiaries the accurate monthly benefit amount is vital to protecting the public's earned benefits under the Old-Age, Survivors, and Disability Insurance program. By following policy requirements, including documenting these discussions, SSA can help beneficiaries make well-informed decisions and avoid outcomes that may be irreversible."

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Why was the cost of this oversight so high?

The SSA's failure to properly inform beneficiaries of their options came at a huge cost because of the way that Social Security works when it comes to retirement and survivor benefits.

Specifically, if someone claims Social Security Old-Age, Survivors, and Disability Insurance (OASDI) benefits, the application generally is considered to be an application for all benefits the claimant is eligible for. This happens unless the applicant specifically limits the scope of their application in a way that the Social Security Administration allows.

However, widows and widowers are allowed to limit their application to only apply for survivor benefits and not for their own retirement benefits.

Widows and widowers received a lack of information

Widows and widowers are able to collect survivor benefits to bring income into their household, while leaving their retirement benefits alone to grow by avoiding early filing penalties and earning delayed retirement credits. Delaying a claim for their own retirement benefits could increase their standard benefit by as much as 24% if they waited until 70, or could allow them to avoid up to a 30% benefit cut resulting from an early claim at 62.

Unfortunately, many lost the opportunity to do that because the Social Security Administration didn't adequately inform them of this option. This decision is irreversible in most cases and comes at a huge cost.

Don't count on the SSA to help you make your claiming choice

Unfortunately, the error identified by the OIG demonstrates something important that everyone should know. You shouldn't count on the Social Security Administration to give you all the information that you need to optimize your benefits.

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Other instances when research is warranted

If you are married, there are many different Social Security claiming strategies to use to maximize both your combined monthly and combined lifetime income.

For example, you could have the higher earner delay their own retirement benefits as long as possible to increase survivor benefits, while the lower earner starts their own retirement checks early and switches to spousal benefits later (since spousal benefits don't become available until the primary earner claims their own checks).

However, the right approach depends on a huge number of factors, including the age of both spouses, whether there was an earning disparity, and the health of both spouses.

Take your time and do your research

Social Security does not provide comprehensive advice on how to develop a smart claiming strategy, so you need to research and understand your options on your own or work with a financial advisor for help.

Give yourself more time than you think you need to sit down, do your research, and understand your options.

Bottom line

Social Security benefits are guaranteed for life, and they also have cost-of-living adjustments built in, so you get inflation protection. Few other sources of retirement income offer these benefits.

If you want to get on track for retirement, taking the time to learn and understand exactly how Social Security works and making a smart claiming decision is well worth the effort. You don't want to potentially leave millions on the table, as the OIG's report shows many widows did, so do your research or get the help you need to make the Social Security claiming choice that truly is best for you.

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