Have you looked at your Social Security statement lately and spotted something that seems off? Are you concerned that a wrong move could cost you thousands? Knowing the most common traps is the best place to start.
Lots of people make preventable mistakes when they claim Social Security. Some of these errors lower your monthly check for good, and others push back the date your first payment arrives. Below are the five biggest ones to watch out for.
Claiming at the Wrong Age
Starting benefits too soon is one of the costliest choices you can make. You’re allowed to begin collecting at 62, but doing so can cut your monthly payment by as much as 30%, and that cut stays with you for life.
Holding off until 70, by contrast, can raise your benefit a great deal. Every year you wait beyond full retirement age adds 8% to your payment. A delay of just a few years could put hundreds of extra dollars in each monthly check.
Your full retirement age is based on your birth year. For most people retiring in 2026, it’s somewhere between 66 and 67. Claim earlier than that and you lock in a smaller payment permanently. Weigh your health, your savings and how long you expect to live before you decide.
Not Planning Together as a Couple
Married couples who don’t coordinate can leave thousands of dollars on the table. Social Security has specific spousal and survivor benefits, and using them well can boost your total household income.
In most cases the spouse with higher earnings should wait as long as they can to claim. That protects whoever outlives the other, because when one spouse dies the survivor keeps the larger of the two benefits. Making that larger benefit as big as possible helps both of you.
You may also be able to take spousal benefits while your own benefit keeps growing. That lets you receive up to 50% of your spouse’s benefit to begin with and move to your own larger amount later. If you’re divorced, you may be able to claim on your former spouse’s record as long as the marriage lasted 10 years.
Skipping these options can add up to tens of thousands of dollars over a lifetime. It may be worth talking to a financial advisor who focuses on Social Security planning.
Working Without Knowing How the Earnings Test Works
A lot of people don’t know that holding a job while collecting benefits can shrink those payments for a while. If you claim before full retirement age, the Social Security earnings test kicks in, and it can hold back some or all of your benefits.
In 2026, anyone under full retirement age can earn up to $23,400 with no reduction. Above that amount, Social Security holds back $1 for every $2 you earn. During the year you hit full retirement age, the limit rises to $62,160, and the withholding eases to $1 for every $3 earned.
The money held back isn’t gone for good. When you reach full retirement age, Social Security recalculates your benefit and credits you for the months it withheld. Even so, it can squeeze your budget if you didn’t see it coming.
After you reach full retirement age, the earnings test no longer applies at all, and you can earn as much as you like without any effect on your benefits. Timing your work around these rules helps you avoid nasty surprises.
Overlooking Taxes on Your Benefits
Plenty of retirees are caught off guard when they find out Social Security can be taxed. Depending on your combined income from every source, up to 85% of your benefits may be subject to federal income tax.
Combined income is your adjusted gross income, plus any nontaxable interest, plus half of your Social Security benefits. Once that number passes certain thresholds, tax applies. The threshold begins at $25,000 for individuals and at $32,000 for married couples filing jointly.
Some states tax Social Security benefits too, which makes tax planning more complicated. If you don’t budget for these taxes, you could end up with less cash than you expected.
There are ways to keep the tax bite smaller. Managing withdrawals from your retirement accounts with care is one. Converting a traditional IRA to a Roth IRA before you start benefits is another. A tax professional can help you hold on to more of your money.
Never Checking Your Earnings Record for Mistakes
Your benefit is calculated from your 35 highest-earning years. If your earnings record has errors in it, your payment may come out lower than it ought to be, and those errors are more common than most people assume.
Typical problems include missing years, wrong salary figures and mismatched names. They usually come from employer reporting slip-ups or data entry mistakes. Even a small error can cost you thousands in lifetime benefits.
Look over your earnings record at least once a year. It’s free to view through your online Social Security account. Check it against your tax returns and W-2 forms, and report anything wrong right away.
The Social Security Administration can fix mistakes, but it will want documentation. Hang on to old tax returns, pay stubs and W-2 forms for exactly this reason. The sooner you act, the easier the correction, because older records get harder to verify.
Looking After Your Future Income
Any of these five mistakes can take a real toll on your retirement. Learning how Social Security works is time well spent, since even a modest increase in your benefit adds up over decades.
If you don’t have an online Social Security account yet, set one up. Check your earnings history and benefit estimates on a regular basis. Think about how the age you claim changes your monthly payment, and if you’re married, talk through a strategy with your spouse. Doing this will help you collect the full amount you’re entitled to.
If you plan to keep working, remember the earnings test and taxes. Both can make a noticeable difference to what you actually take home. Planning early helps you avoid expensive surprises.
For many people, Social Security is one of the biggest retirement assets they have, so it deserves careful attention. Avoiding these common errors helps make sure you get every dollar you’ve earned. Take charge of your benefits now and set yourself up for a more comfortable retirement.
