Lifestyle
7 Social Security Mistakes That Will Cost You Thousands
By Erica Coleman · May 27, 2026
Social Security is likely the largest guaranteed income source you will have in retirement — and the decisions you make around it are largely irreversible. Financial advisors say these seven mistakes consistently cost retirees tens of thousands of dollars over their lifetimes.
1. Claiming at 62 without understanding the permanent reduction
You can claim Social Security as early as age 62, but doing so permanently reduces your benefit. The reduction is approximately 30% below what you would receive at your full retirement age — and that reduction applies to every check you receive for the rest of your life. For someone whose full retirement age benefit would be $2,000 per month, claiming at 62 means receiving approximately $1,400 per month — forever. Over a 25-year retirement, that gap compounds to hundreds of thousands of dollars.
2. Not understanding the spousal benefit
Married couples have access to a spousal benefit that pays up to 50% of the higher-earning spouse’s benefit. Most couples don’t strategize around this — they simply both claim at the age that feels right. A coordinated strategy in which one spouse delays claiming to 70 while the other claims earlier can substantially increase the total lifetime income the household receives, particularly if one spouse significantly out-earned the other.
3. Not knowing about the survivor benefit
When a spouse dies, the surviving spouse receives the larger of the two Social Security checks — not both. This means every dollar the higher-earning spouse adds to their benefit by delaying is a dollar that protects the survivor. Couples who don’t understand this often have the higher earner claim early, permanently reducing the amount the survivor will receive for potentially decades after the first spouse passes.
4. Claiming while still working without understanding the earnings test
If you claim Social Security before your full retirement age and continue earning income, the SSA withholds $1 for every $2 you earn above $24,480 annually in 2026. This surprises many retirees who plan to work part-time while collecting benefits. The withheld benefits are eventually returned through a recalculation at full retirement age, but the short-term cash flow disruption catches people unprepared.
5. Trusting a Social Security employee’s advice without verification
“I have witnessed several instances in which an individual simply accepted what a Social Security representative told them, only to later find out the representative was incorrect, costing the individual benefits,” said Ryan Monette, CFP, with Savant Wealth Management. SSA employees are not financial advisors and are not trained to help you optimize your claiming strategy. Their guidance is procedural. For optimization, consult a CFP or Social Security specialist.
6. Not checking your earnings record for errors
Your Social Security benefit is calculated based on your 35 highest-earning years. If your employer reported your wages incorrectly — or if gaps in your record don’t accurately reflect your earnings — your benefit calculation will be wrong. You can check your earnings record for free at ssa.gov/myaccount. Errors are more common than most people realize, and they must be corrected before you claim.
7. Not considering the tax implications
Up to 85% of your Social Security benefit may be taxable, depending on your combined income from all sources. Many retirees are surprised to discover that their Social Security check is not tax-free — particularly when they begin drawing from retirement accounts in the same year they claim benefits. Understanding how Social Security fits into your broader tax picture before you claim can prevent a significant and avoidable tax bill.
The Social Security Administration’s official benefit calculator is available at ssa.gov. A certified financial planner who specializes in retirement income can help you model different claiming scenarios before you make an irreversible decision.