For millions of Americans, Social Security provides a vital, inflation-adjusted income base that lasts throughout retirement. Yet, navigating the system’s complex rules is notoriously difficult, and a single, uninformed decision can cost you — and your spouse — tens or even hundreds of thousands of dollars over a lifetime.
Understanding common Social Security errors — from permanently reducing benefits by claiming too early to overlooking spousal strategies and hidden taxes — is the crucial first step toward maximizing your guaranteed lifetime income.
Here is a breakdown of the 10 critical missteps you must avoid to secure the retirement benefits you’ve earned.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more – straight to your e-mail.
Profit and prosper with the best of expert advice – straight to your e-mail.
1. Filing early and permanently reducing your benefit
(Image credit: Getty Images)
Potential Cost: Collecting benefits as soon as possible, which for many people happens at age 62, will permanently reduce your monthly payment. For someone with a full retirement age (FRA) of 67, claiming at 62 results in a permanent reduction of up to 30%. This decision can cost you tens of thousands of dollars over a long retirement. Unless you absolutely need the income, delaying your claim is a significant way to maximize lifetime benefits.
2. Miscalculating your Full Retirement Age (FRA)
(Image credit: Getty Images)
Your full retirement age (FRA) is the point at which you can collect 100% of your earned Social Security benefit. Your FRA is not age 65 for everyone. If you were born:
- In 1960 or later, your FRA is age 67
- In 1959, your FRA is age 66 and 10 months
- In 1957, your FRA is age 66 and six months
- In 1956, your FRA is age 66 and four month
- In 1955, your FRA is 66 and two months
- Between 1943 and 1954, your full retirement age (FRA) is age 66.
Potential Cost: Mistakenly assuming your FRA is 65 can lead to an unexpected, permanent reduction in your monthly check. You can also check your exact FRA at SSA.gov before making any decisions.
3. Failing to capitalize on delayed retirement credits
(Image credit: Getty Images)
Potential Cost: The Social Security Administration (SSA) rewards patience. For every year you delay claiming benefits between your FRA and age 70, your benefit is boosted by an 8% increase, through delayed retirement credits. If 70 is too long to wait, consider waiting a month — you’ll get an extra 2/3 of 1% for each month you delay after your reach your full retirement age.
These credits stop accumulating at age 70, making that the maximum age to file. If you have other resources like savings, investments, or a pension, using them to bridge the gap until age 70 can dramatically increase your lifetime Social Security benefits.
4. Overlooking spousal and survivor benefits
(Image credit: Getty Images)
Social Security is not just based on your own work history. If you are married (for at least a year), divorced (after having been married at least 10 years), or widowed, you may be eligible to receive benefits on your spouse’s or former spouse’s record.
A spouse is generally entitled to up to 50% of the higher earner’s FRA benefit.
A widow or widower can receive up to 100% of the deceased spouse’s benefit.
Potential Cost: There are no delayed retirement credits on survivor benefits, but there are various strategies for claiming one benefit (like survivor benefits) while allowing your own worker benefit to grow until age 70. Not exploring these options can leave money on the table.
5. Not understanding how remarriage affects divorced spouse or survivor benefits.
(Image credit: Getty Images)
This mistake is complex and specific to those who are divorced or widowed. This is an instance where a simple oversight can cause a massive, permanent loss of benefits. The mistake? Remarrying at the wrong age or without understanding the specific Social Security rules that apply to your status.
For Divorced Spouses (10-year marriage rule): If you remarry, you generally lose your eligibility to claim benefits based on a former spouse’s record. You would need that subsequent marriage to end, by death, divorce, or annulment, to become eligible for the former spouse’s benefit again.
For Widows/Widowers claiming survivor benefits: This rule is age-dependent and extremely critical.
Remarrying before age 60 generally causes you to forfeit your survivor benefits based on the deceased spouse’s record.
Remarrying at or after age 60 allows you to keep the higher survivor benefit.
The Cost: Failing to understand these precise age rules when considering remarriage can cost you 100% of a valuable spouse/survivor benefit you were counting on, making it a critical financial misstep.
6. Getting caught off guard by the earnings penalty while working
(Image credit: Getty Images)
If you claim Social Security benefits before your FRA and continue to work, you may be subject to the earnings test (also called the retirement earnings limit).
For those under FRA all of 2025, the SSA withholds $1 for every $2 earned above a limit of $23,400.
For those reaching FRA in 2025, the limit is $62,160 for the months before your birthday, and the reduction is $1 for every $3 earned above that limit.
Potential Cost: The temporary benefit reduction can be an unwelcome surprise if you are not prepared. However, once you reach your FRA, the earnings limit disappears, and the SSA recalculates your benefit to give you credit for the amount that was withheld.
7. Not correcting errors in your earnings history
(Image credit: Getty Images)
Your earnings record is built throughout your lifetime and serves as the basis for how much you or your dependents would receive when you apply for benefits.
Potential Cost: Your Social Security benefit is based on your 35 highest-earning years. Any year you didn’t work counts as a zero, which reduces your average. Mistakes in your earnings record — due to a forgotten name change, an employer error or an incorrect Social Security number — can lower your future payments. It’s important to review your earning records and correct any errors as soon as possible.
8. Ignoring your actual life expectancy
(Image credit: Getty Images)
Some people claim benefits early because they doubt they will live long. Others delay too long without considering their health. A man reaching age 65 today can expect to live an average of 18 more years, and a woman more than 20 years, according to the National Council on Aging.
Potential Cost: If longevity runs in your family, delaying benefits to age 70 to maximize your monthly check can be a huge advantage. However, if your health is poor, claiming earlier may be a sensible choice. The key is to make an informed decision based on your financial situation and health, not a guess.
9. Being blindsided by taxes on benefits
(Image credit: Getty Images)
Strategically timing withdrawals from traditional retirement accounts, such as 401(k)s and IRAs, versus Roth accounts can help manage your combined income and reduce the tax bite on your Social Security benefits.
Potential Cost: Up to 85% of your Social Security benefits could be subject to federal income tax, depending on your income. The IRS uses a figure called “combined income” (your Adjusted Gross Income (AGI) + nontaxable interest + one-half of your Social Security benefit) to determine taxability:
|
Filing status |
Combined income threshold |
Max taxable benefit |
|
Single |
Below $25,000 |
0% |
|
Single |
$25,000 – $34,000 |
up to 50% |
|
Single |
Above $34,000 |
up to 85% |
| Row 4 – Cell 0 | Row 4 – Cell 1 | Row 4 – Cell 2 |
|
Joint filers |
Below $32,000 |
0% |
|
Joint filers |
$32,000 – $44,000 |
up to 50% |
|
Joint filers |
Above $44,000 |
up to 85% |
10. Treating social security as your entire retirement plan
(Image credit: Getty Images)
Retirement experts commonly suggest you’ll need 70% or more of your pre-retirement income to maintain your lifestyle. If you were earning $70,000, Social Security might only provide $28,000, leaving a significant gap. A successful retirement requires a plan that integrates Social Security with savings, investments, and other income sources.
Potential Cost: Social Security was designed to be a foundation, not the whole floor. On average, it replaces only about 40% of the income of a medium earner before retirement. For a high earner, the replacement rate is closer to 28%.
Knowing these rules will pay in the long run
The unfortunate truth is that many retirees file for benefits at the wrong time, often due to widespread misconceptions or simply an incomplete understanding of their options. The difference between a well-timed claim and a costly mistake can be the margin between financial comfort and struggling to make ends meet in your later years.
