Avoid These Social Security Mistakes Before They Cut Your Retirement Checks

Many retirees are filing for Social Security before reaching full retirement age, overlooking spousal benefits, or miscalculating taxes. These errors can permanently reduce monthly payments and lower lifetime retirement income, according to financial planners. Experts note that understanding the timing of claims and tax obligations is critical for retirees to maximize benefits.

Roughly 67 million Americans received Social Security benefits in 2024, according to the Social Security Administration (SSA). For many households, the program represents about 40% of retirement income. Yet analysts say a lack of planning often erodes those payments.

Early filing reduces lifetime income

The most common mistake is claiming benefits as soon as eligibility begins at age 62. Doing so cuts monthly checks by as much as 30% compared with waiting until full retirement age, currently 66 or 67 depending on birth year. “That reduction is permanent, and for many people it adds up to tens of thousands of dollars over a lifetime,” said Christopher Stroup, a financial planner at Silicon Beach Financial.

Delays in receiving first payments

Advisers also report confusion about timing. The SSA typically requires up to three months from application to first payment. “We often see clients retire in June and expect a check right away, but if they didn’t apply by April, they may face a gap in income,” said Patrick Ray, senior vice president at Wealth Enhancement Group.

Spousal and survivor benefits left unused

Spousal claims, which allow one partner to receive up to 50% of the other’s benefit, are another overlooked feature. Couples who fail to coordinate claims can miss out on higher combined income. Survivor benefits, which can provide the higher earner’s full check to a surviving spouse, are also frequently misunderstood.

Tax and income coordination issues

Up to 85% of benefits can be taxable depending on household income. Many retirees do not adjust tax withholding, leaving them with unexpected liabilities at filing time. In addition, failing to coordinate Social Security with withdrawals from 401(k)s or IRAs can lead to premature depletion of savings.

Longevity underestimated

Planners warn that retirees often base decisions on family life expectancy rather than broader averages. A 65-year-old today can expect to live, on average, until 84 for men and 87 for women, according to SSA data. Without modeling longer lifespans, retirees risk exhausting resources.

A 2024 Fidelity survey found that 74% of Americans over 50 lack a written retirement plan. Advisers argue that clearer guidance from the SSA and earlier financial planning could reduce missteps.

“Social Security was never designed to be the only source of income in retirement, but for millions it effectively is,” Ray said. “That makes every decision around it more consequential.”

Also Read: Tariffs Threaten to Wipe Out 2026 Social Security COLA Gains