Avoid These Social Security Mistakes: How to Maximize Your Benefits in Retirement

When it comes to retirement planning, Social Security is one of the most important pieces of the puzzle. But it’s also one of the easiest to mess up. I’ve seen countless people make decisions—often out of fear or misunderstanding—that cost them tens or even hundreds of thousands of dollars over their lifetime. In this post, I want to walk through the biggest Social Security mistakes and how you can avoid them to secure your financial future.
Let’s start with a reality check: most of us are going to live longer than we think. About 80% of men and 88% of women reach age 65, and from there, the average life expectancy is 84 for men and 86 for women. And here’s the kicker—half of us will live even longer. That means Social Security isn’t just a short-term benefit—it’s a crucial income stream that needs to last two or three decades. The scary part? By age 85, nearly 60% of seniors struggle to afford housing, food, healthcare, and transportation. So the decisions you make today matter a lot later on.
One of the most common mistakes is claiming Social Security too early. Sure, you can start as early as 62, but doing so locks you into a reduced benefit. For example, someone eligible for $2,000 at full retirement age might only receive $1,400 if they claim at 62. Wait until 70, and that benefit could grow to $2,500. Over a lifetime, that difference could add up to $100,000–$200,000. Delaying benefits is like buying insurance against a long life—you may not need it, but if you do, it’s a lifesaver.
This isn’t just about you. It’s about your spouse too. I always remind higher earners in a marriage that their decision affects spousal and survivor benefits. If Jane claims early and receives $1,680/month, that’s what her husband Bob will get as a survivor. But if she waits until 70 and gets $3,000/month, Bob’s survivor benefit jumps by $1,300/month or $15,000/year. That’s a powerful legacy move. Delaying may feel like a sacrifice now, but it’s a long-term gift to your partner.
Now, if you plan to work while receiving Social Security before your full retirement age, be careful. The earnings test kicks in and you’ll lose $1 in benefits for every $2 you earn above the limit—$23,400 in 2025. The good news? Those withheld benefits are recalculated and returned once you hit full retirement age. Plus, working longer can actually increase your benefit because Social Security adjusts your payments based on your earnings history each year.
Another pitfall is taxes. Social Security benefits aren’t always tax-free. If your provisional income—which includes half your Social Security plus other income—is over $25,000 (single) or $32,000 (married), you could owe taxes on up to 85% of your benefits. That’s a big surprise for many retirees. Smart planning, like Roth conversions or strategic withdrawals, can help reduce that tax bite.
It’s also essential to understand that Social Security won’t cover all your expenses. The average benefit is about $2,000/month, but if your retirement budget is $4,000/month, you’ve got a $2,000 gap to fill. That means you’ll need additional savings, part-time income, or alternative strategies to bridge that difference. Social Security should be your base—not your entire plan.
Another common misunderstanding is the idea that you must claim benefits as soon as you retire. Not true. Just because you stop working doesn’t mean you have to start collecting Social Security. You can delay and let your benefit grow, especially if you’ve saved up enough or have part-time income to carry you in the meantime. Flexibility is your friend here. Make decisions based on your life—not just your birthdate.
One thing that gets overlooked way too often is checking your earnings record. Social Security calculates your benefit based on your 35 highest-earning years. If any of those years are missing or incorrectly reported, your benefits could be significantly lower. Head over to ssa.gov and double-check your record. If there are errors, it’s easiest to fix them within three years of the tax year in question.
There are also additional benefits you might be missing. Widows, divorced spouses, and even parents of minor children may be entitled to extra income through Social Security. If you were married for at least 10 years and are now divorced, you may be able to claim benefits on your ex-spouse’s record—even if they don’t know or aren’t retired yet. And it doesn’t affect their benefits at all. These rules are complex, but they’re also opportunities.
At the end of the day, the most important thing is to take your time. Social Security isn’t just another check—it’s a guaranteed income stream for life. Run the numbers. Understand the trade-offs. Talk to an advisor if needed. The decisions you make now will shape your income for the next 20 or 30 years. So don’t rush. Be intentional. And most importantly, make a plan that works for you.