Millions of Americans rely on Social Security as a key part of their retirement plan. However, many unknowingly make costly mistakes that can reduce their benefits—or even delay them altogether. If you want to get the most out of your Social Security, avoid these seven common missteps.
1. Claiming Benefits Too Early
While it’s tempting to start collecting Social Security at 62, doing so comes at a steep price. Your monthly benefits will be permanently reduced—by up to 30%—if you claim before reaching your full retirement age (FRA), which is between 66 and 67, depending on your birth year. On the other hand, if you delay your benefits until age 70, your payments increase significantly. That extra patience could mean a much larger check every month for the rest of your life.
2. Ignoring the Earnings Limit
If you start claiming Social Security before your FRA and continue to work, your benefits could take a hit. In 2025, earning more than $23,400 will result in $1 being deducted from your benefits for every $2 earned above the limit. The good news? Once you reach full retirement age, Social Security recalculates your benefits, and the withheld amounts are gradually returned.
3. Misunderstanding Spousal and Survivor Benefits
Many retirees miss out on valuable spousal and survivor benefits simply because they don’t understand the rules. For example, if you remarry before turning 60, you could lose access to survivor benefits from a deceased spouse. Spousal benefits also allow you to collect up to 50% of your spouse’s benefits—but only if you wait until your FRA to claim them. Coordinating benefits with your spouse is crucial for maximizing what you’re entitled to.
4. Not Checking Your Earnings Record
Social Security benefits are calculated based on your highest 35 years of earnings. If there are errors in your earnings record, your benefits could be lower than they should be. Checking your Social Security Statement regularly ensures that all your work history is correctly reported. If you spot any mistakes, report them to the Social Security Administration immediately to prevent future payout issues.
5. Thinking All Income is Treated the Same
Not all income affects your Social Security benefits the same way. While wages and self-employment income can impact your benefits, other sources—like pensions and investments—typically don’t. Many retirees make the mistake of assuming they can earn as much as they want while collecting benefits, only to be surprised when their payments are reduced. Understanding how different income sources interact with Social Security is key to avoiding unexpected financial headaches.
6. Forgetting About Taxes on Benefits
Did you know that Social Security benefits can be taxed? If your combined income (including wages, pensions, and other earnings) exceeds certain thresholds, up to 85% of your benefits could be taxable. Failing to plan for this could lead to a nasty surprise when tax season rolls around. A little advance planning—such as adjusting withdrawals from retirement accounts—can help keep your tax bill in check.
7. Relying Only on Social Security for Retirement
Many retirees assume Social Security will cover all their expenses, only to find out too late that it’s not enough. Social Security was designed to replace only about 40% of pre-retirement income for the average worker. Without savings, investments, or other income sources, you might struggle to maintain your standard of living. To avoid financial stress, build a retirement strategy that includes multiple income streams.
Final Thoughts
Navigating Social Security can be tricky, but a little planning goes a long way. Avoiding these common mistakes can help ensure you receive the benefits you’ve earned. If you’re unsure about your situation, consulting a financial advisor can provide personalized guidance and peace of mind. Your retirement should be a time to relax—not to worry about money.
