4 Social Security Mistakes That Could Derail Your Retirement

Although Social Security has been in place for nearly a century, many Americans still don’t understand how to get the most out of their benefits. With more than 73 million people projected to receive benefits this year, understanding the right claiming strategy is more important than ever.¹

Below are four mistakes that could significantly impact your retirement income — and how to avoid them.

1. Not knowing your Full Retirement Age (FRA)

Your Full Retirement Age (FRA) is the age at which you qualify for your full Social Security benefit. If you were born between 1943 and 1954, your FRA is 66. For those born in 1960 or later, it’s 67.

Filing before your FRA means you will get a lower monthly benefit for life. If you wait to claim after your FRA, your monthly payment can increase until you turn 70.

It’s important to know something about your birth date. If you were born on the first day of a month, the Social Security Administration looks at the previous month. They may even consider the year before when calculating your Full Retirement Age (FRA).

If you haven’t worked at least 35 years, the SSA will factor in zero-earning years, which could further reduce your benefit

FRA based on birth year

2. Filing for benefits too early

You can claim Social Security at age 62. However, this may lower your benefit by up to 30%. This reduction applies for the rest of your life.

Here’s how it works:

• Your benefit is reduced by about 6.7% per year for the first three years before your FRA.
• It’s then reduced by 5% per year for each year beyond that.

Spouses who claim early may also see a reduction of up to 35% in spousal benefits. On the other hand, waiting until after your FRA boosts your benefits by roughly 8% per year, up until age 70.

3. Ignoring life expectancy in your decision

When to claim Social Security depends on personal circumstances, including your health and life expectancy. If you expect to live well into your 80s or beyond, waiting to claim could significantly increase your lifetime benefits.

However, if you have health concerns or need income earlier, claiming sooner may be the right move. Those with additional income sources like a pension or retirement savings may have more flexibility in delaying benefits.

4. Overlooking the rules and flexibility of Social Security

Many Americans misunderstand how Social Security works — especially the impact of early or delayed claims and how work income affects benefits.

Here are some key points:

• You can cancel your initial claim within 12 months if you change your mind, but you must repay any benefits received.
• If you claim early and continue to work, your benefit may be temporarily reduced based on your earnings. After you reach FRA, the SSA recalculates your benefit to account for withheld amounts.
• There’s no financial benefit to delaying Social Security beyond age 70.

Understanding these rules can help you avoid common pitfalls and align your benefits strategy with your overall retirement plan.

For more information, visit our library of Social Security articles. If you’re not a client and you’d like to learn more, let’s talk.

¹ DeSilver, Drew. “What the data says about Social Security.” Pew Research Center, May 20, 2025.

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