What Can Go Wrong: Mismanaging Your Benefits

While the system is highly reliable, the rules governing how and when you claim your benefits are notoriously complex. Making a mistake here can cost you hundreds of thousands of dollars over your lifetime.

• Claiming too early: You can claim as early as age 62, but doing so permanently reduces your monthly check by up to 30%. Many seniors panic, claim early out of fear, and regret the smaller check when they reach their eighties.
• Ignoring the earnings test: If you claim early but continue working, the Social Security Administration will withhold a portion of your benefits if your earned income exceeds a certain threshold. Many retirees are blindsided by these withheld checks.
• Failing to coordinate spousal benefits: Couples who claim without a unified strategy often leave money on the table, particularly regarding how their choices impact the surviving spouse’s future income.