Nine Social Security Mistakes Retirees Make and How to Avoid Them

The mistakes that cost you the most money

The nine mistakes below cost retirees thousands of dollars over their lifetime — and most are irreversible once you claim. The biggest ones involve claiming too early, not coordinating with a spouse, and not understanding how work affects your payment. Some mistakes happen because Social Security's rules are genuinely confusing. Others happen because the financial pressure to claim right away feels urgent, even when waiting would pay off.

This guide walks through each mistake, what it costs you, and what you can do instead. Many of these decisions can be tested before you commit — you can see your projected payment at different ages, talk through your household situation, and understand the trade-offs before you claim.

Key Takeaways

• Claiming at 62 instead of waiting until 67 or 70 reduces your monthly payment by 25 to 42 percent for your entire life, and the difference compounds if you live past 80.
• If you are married, one spouse can claim early while the other waits, but the rules about which spouse claims first and when matter enormously for household income.
• Earning wages after you claim before your full retirement age reduces your payment by $1 for every $2 you earn above a yearly limit, and that limit changes each year.
• You can change your claim within 12 months of claiming, but only by repaying what you received — a move that makes sense only in specific situations.
• Your ex-spouse's record may give you a higher payment than your own record, but only if you meet specific requirements about marriage length and age.

Mistake 1: Claiming at 62 when you could wait

Claiming at your earliest possible age (62) feels like the obvious choice when you are newly retired and the money is available. The cost is permanent: your monthly payment is reduced by about 30 percent compared to claiming at your full retirement age (66 or 67, depending on your birth year), and by about 42 percent compared to waiting until 70.

That reduction applies to every single payment you receive for the rest of your life. If you live to 80, the total amount you receive by waiting until 70 instead of 62 is usually higher — even though you claimed for fewer years. The break-even point is typically around age 80 to 82, depending on your exact age and the year you were born.

The trade-off is real: if you need the money now, or if your health suggests you will not live into your 80s, claiming early makes sense. But if you are in average health and have other income or savings to live on, waiting even a few years moves the break-even point down and increases the total you receive over your lifetime.

Mistake 2: Not understanding how your spouse's record affects your payment

If you are married, you may be able to claim on your spouse's record instead of your own — or in addition to your own — if your spouse's record gives you a higher payment. The rules changed in 2015 for people born after January 1, 1954, so what applied to your parents may not apply to you.

For people born after 1954, you can claim on your spouse's record only if you have already reached your full retirement age. You cannot claim a "spousal benefit" at 62 and let your own record grow until 70. That option ended. What you can do is wait until your full retirement age, claim on your spouse's record, and then switch to your own record at 70 — but only if your spouse has already claimed.

The household math changes if one spouse is significantly older, or if one spouse earned much more than the other. Running the numbers for both of you at different claiming ages — using the Social Security Administration's online calculator or a benefits counselor — often reveals a strategy that increases household income by thousands of dollars over time.

Mistake 3: Claiming before your spouse, when waiting would pay off more

If you are married and one spouse earned significantly more, the higher-earning spouse's decision about when to claim affects both of your household income. When the higher earner waits until 70, their payment is larger — and if they pass away first, the surviving spouse receives the higher amount as a survivor benefit.

The lower-earning spouse can often claim earlier without much penalty, because their own record is smaller anyway. The household gets income sooner, and the higher earner's record grows. This is not always the right move — it depends on your ages, your health, and your other income — but it is a strategy worth exploring with a benefits counselor before either of you claims.

The mistake is claiming both of you at the same age, or having the higher earner claim first, without running the numbers for other scenarios. Social Security's website has a calculator, and many Area Agencies on Aging offer free counseling to help you think through the options.

Mistake 4: Working after you claim before your full retirement age

If you claim before your full retirement age and continue to work, Social Security reduces your payment by $1 for every $2 you earn above a yearly limit. In 2024, that limit is $23,400 — but the limit changes each year, so check the current amount before you decide to work.

The reduction stops once you reach your full retirement age. After that month, you can earn as much as you want without any reduction to your payment. But between claiming and reaching full retirement age, the earnings limit is a real cost that many retirees do not anticipate.

If you are thinking about working part-time in early retirement, calculate what your payment would be after the earnings reduction. Sometimes it makes more sense to wait a year or two to claim, work during that time, and then claim a higher payment. A benefits counselor can help you run those numbers.

Mistake 5: Not knowing you can change your claim within 12 months

If you claimed and now regret it — because you are in better health than you expected, or because you did not realize how much the early-claim reduction would cost you — you have one option: you can withdraw your claim within 12 months of claiming and repay what you received. Your payment then grows as if you had never claimed.

This move makes sense only in specific situations. You have to repay the entire amount you received, which can be thousands of dollars. But if you claimed at 62 and are now 63, and you have the money to repay, waiting until 70 to claim again increases your lifetime income significantly. A benefits counselor can tell you whether the math works for your situation.

After 12 months, you cannot withdraw your claim. You are locked into the payment you chose. This is why running the numbers before you claim — not after — matters so much.

Mistake 6: Claiming on your own record when your ex-spouse's record is higher

If you were married for at least 10 years and are now divorced, you may be able to claim on your ex-spouse's record — even if they have not claimed yet, as long as you are at least 62 and have been divorced for at least two years. Your ex does not have to agree, and they do not have to know.

Your payment on their record is based on their earnings history, not yours. If they earned significantly more than you did, their record may give you a higher payment than your own record would. You can claim on their record at 62, or wait until your full retirement age to claim a larger amount.

The mistake is not checking whether this option exists for you. You can see your own projected payment on your Social Security statement, but you have to contact Social Security directly or work with a benefits counselor to find out what you would receive on an ex-spouse's record. It is worth the phone call if you were married for 10 years or more.

Mistake 7: Not accounting for taxes on your benefits

Social Security benefits are not automatically taxed, but they can be taxed depending on your other income. If you have income from a job, a pension, or investments, part of your Social Security payment may become taxable. The tax is based on your "combined income," which includes your adjusted gross income, tax-exempt interest, and half of your Social Security benefits.

If your combined income is above a certain threshold — $25,000 for a single person, $32,000 for a married couple filing jointly — up to 50 percent of your benefits may be taxable. If your combined income is higher, up to 85 percent may be taxable. This is not a reason to avoid claiming, but it is a reason to plan your other income carefully in the year you claim and in the years after.

A tax professional or benefits counselor can help you understand how your specific income situation affects your tax bill. Sometimes shifting when you claim, or when you withdraw from retirement accounts, reduces your total tax burden.

Mistake 8: Not updating your information after major life changes

Social Security needs to know if you marry, divorce, or if a family member dies — because these events can change your payment or create new benefits for your household. If you remarry after 60, you may still be able to claim on your ex-spouse's record. If a spouse or ex-spouse dies, you may become may be able to access for survivor benefits that are higher than your own retirement benefit.

The mistake is assuming Social Security will find out on its own. You have to report these changes. You can do this by calling Social Security, visiting a local office, or using their online account. If you do not report a change, you may miss out on a higher payment, or you may receive an overpayment that Social Security will ask you to repay later.

Keep a record of when you reported changes and to whom you spoke. If there is ever a discrepancy in your account, you will have documentation.

Mistake 9: Not reviewing your Social Security statement before you claim

Your Social Security statement shows your earnings history and your projected payment at different ages. Errors in your earnings history — a missing year, a year with the wrong amount, or earnings credited to the wrong person — directly reduce your payment. These errors are fixable, but only if you catch them before you claim.

You can create an account on ssa.gov to view your statement online. Check that your name, date of birth, and earnings history are correct. If you see an error, contact Social Security with documentation (like a tax return or W-2) and ask them to correct it. This can take several months, which is why doing it years before you plan to claim is important.

If you do not have an online account, you can request a paper statement by mail. Either way, reviewing your statement before you claim takes a few hours and can result in thousands of dollars in additional lifetime benefits.

Frequently Asked Questions

Can I change my mind after I claim if I did not withdraw within 12 months?

No. After 12 months, your claim is final and you cannot withdraw it. You are locked into the payment you chose. This is why it is so important to run the numbers and think through your decision before you claim, not after.

What if I claimed early and now I am working and hitting the earnings limit?

Your payment is reduced by $1 for every $2 you earn above the yearly limit, but the reduction stops once you reach your full retirement age. At that point, you can earn as much as you want. If you are close to your full retirement age, it may be worth waiting a few months to claim a higher payment without the earnings reduction.

How do I know if I should claim on my own record or my spouse's record?

Contact Social Security or a benefits counselor and ask them to calculate your payment on both records at different ages. Compare the household income under different scenarios — one spouse claiming early and one waiting, or both waiting until full retirement age. The scenario that produces the most household income over your lifetime is usually the right choice.

What happens to my benefits if I move out of the country?

You can receive benefits while living outside the United States, with some exceptions. Citizens of certain countries may have restrictions. Contact Social Security before you move to find out whether your benefits will continue and what you need to do to report your new address.

Can I receive benefits on two different records at the same time?

No. You claim on one record at a time. You can switch from your spouse's record to your own record at 70, but you cannot receive payments on both simultaneously. Social Security will pay you the higher of the two amounts.