9 Things Almost Every Retiree Gets Wrong When Claiming Social Security

Social Security decisions often feel deceptively simple. You hit a certain age, you file, and the checks start coming. But for many retirees, small misunderstandings around timing or income rules can quietly reduce lifetime benefits and create unpleasant surprises later.

Before you lock in a decision, it's worth slowing down and revisiting some of the most common Social Security mistakes people make while planning for retirement.

Claiming as soon as you're eligible without running the numbers

Some people start claiming Social Security at 62 simply because that's the earliest option. However, that doesn't necessarily make it the best choice. While early claiming can make sense in some situations, it permanently reduces your monthly benefit compared with waiting until full retirement age or later. This difference can make a huge impact over decades of retirement, especially for those that live into their 80s or longer.

Claiming early isn't automatically the "wrong" choice, but take a careful look at the trade-offs first.

Assuming full retirement age means maximum benefits

A surprisingly common misconception is that full retirement age (typically between 66 and 67) delivers the largest possible benefit. In reality, your benefit continues going if you delay claiming beyond this age, up to age 70. Each month you wait increases your monthly check through delayed retirement credits.

Many retirees never realize they could be leaving a higher income on the table simply by claiming as soon as they reach full retirement age.

Not checking your earnings record ahead of time

Social Security benefits are based on your highest 35 years of earnings, but the system only works if your earnings record is accurate. Errors can and do happen, especially for people who changed names, worked multiple jobs, or were self-employed at some point.

Failing to review and correct mistakes years before claiming can result in permanently lower benefits. Once you start collecting, it's much harder (or even impossible) to fix these errors.

Overestimating how much income Social Security will provide

Some retirees treat Social Security as a replacement paycheck. However, Social Security only replaces about 40% of a retiree's pre-retirement income. Instead, it only serves as a foundation. Social Security may help cover basic expenses, but savings and other income are needed to fill the gap.

Relying too heavily on Social Security can lead to a very strained budget, especially when you consider health care costs and inflation.

Ignoring the earnings test if still working

If you claim Social Security before full retirement age and continue working, your benefits may be temporarily reduced if your earnings exceed certain limits. This often catches people off guard, particularly those easing into retirement with part-time or consulting work.

While withheld benefits aren't permanently lost, the short-term cash-flow hit can disrupt plans. If you plan to keep working past retirement, make sure to take a careful look at how that might impact your Social Security check amount.

Forgetting that benefits can be taxable

Many retirees are surprised to learn that Social Security benefits can be subject to federal income tax, depending on total income. Pensions, withdrawals from retirement accounts, and even part-time wages can push income high enough to trigger taxation on a portion of benefits.

If you don't take these taxes into account, you may suddenly find yourself with far less money than you originally anticipated.

Assuming spousal or survivor benefits are automatic

Spousal and survivor benefits offer valuable protection, but they're not always automatic or straightforward. Claiming decisions made by one spouse can affect the other's benefits, sometimes permanently.

Couples can unintentionally reduce lifetime household income if they don't understand how these rules work (or work with a professional who does). This is particularly true in couples with very big income differences between them.

Believing you can easily undo a claiming decision

Once you claim Social Security, flexibility becomes limited. While there are narrow windows to withdraw or suspend benefits, these options come with rules and deadlines that many people miss.

Treating the claiming decision as reversible can lead to rushed decisions. Instead, Social Security is one of the most consequential financial decisions retirees make, and it deserves careful consideration before a decision is made.

Underestimating longevity and claiming too conservatively

Some people claim early because they worry they won't live long enough to benefit from waiting. While health and family history matter, many retirees underestimate how long retirement can actually last. Living into the late 80s or 90s is no longer unusual, and claiming decisions made in your early 60s can echo for decades.

Focusing only on the early years of retirement may lead to lower lifetime income later, when savings could be under more pressure and flexibility is reduced.

Bottom line

Claiming Social Security is much more than jus picking a date. It's understanding how that date fits into the rest of your retirement plan. Small misunderstandings around timing, taxes, work income, and spousal benefits can quietly cut away your monthly benefits for decades. Taking time to review the rules can make a meaningful difference.

Social Security is adjusted for inflation through annual cost-of-living increases, but these are applied as a percentage. Because of this, those with a higher Social Security check will see a bigger dollar value jump at each increase. Starting from a higher base can make those adjustments more impactful over time and help set yourself up for retirement that feels more resilient and less reactive to rising costs.

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