The Social Security Mistakes That Cost Retirees The Most

Seven Claiming Errors Smart People Make and How to Avoid Each One

The most expensive Social Security mistakes are not math errors. They are blind spots. They happen when smart, responsible people make a permanent decision based on incomplete information, a fear that feels urgent, or an assumption nobody ever corrected.

Here are seven of the most common ones. Each one is understandable. Each one is avoidable. And each one can cost a household tens of thousands of dollars or more over the course of a retirement.

Mistake 1: Claiming Social Security at 62 Because “I Earned It”

The feeling behind this one is real. You paid into the system for 35 or 40 years. You want your money. That is completely understandable.

But claiming at 62 is not “getting your money.” It is accepting 70 cents on the dollar for the rest of your life. For everyone born in 1960 or later, full retirement age is 67. Claiming at 62 means a permanent 30% cut (Social Security Administration).

That cut never goes back up. It applies to every check for as long as you live. And it reduces what your spouse receives as a survivor benefit after you are gone.

Waiting until 67 gets you 100%. Waiting until 70 gets you 124%. The 8% per year increase between 67 and 70 is one of the most valuable features in the system.

Hypothetical scenario: A person with a full benefit of $2,400 per month at 67 would receive roughly $1,680 at 62 or roughly $2,976 at 70. The gap is roughly $1,296 per month. Over a full retirement, that difference could exceed $100,000 for someone who lives into their mid-80s, and significantly more for someone who lives longer. Individual results will vary based on earnings history and other factors.

Claiming at 62 is not always wrong. If your health is poor, you have no savings, or you need income now, it may be the right call. The mistake is claiming without understanding the cost.

How to avoid it: Look at your benefit at 62, 67, and 70. Multiply the gap between 62 and 70 by 240 months. That is the range of what is at stake.

Mistake 2: Claiming Social Security Early Because the Trust Fund Might Run Out

This is the mistake driven by fear. And fear makes the math feel irrelevant.

The CBO’s February 2026 baseline projects the OASI trust fund could run out by fiscal year 2032. If Congress does not act, benefits could be cut by roughly 28%. That headline is real. The decision it pushes people toward is almost always the wrong one.

If benefits are cut by 28%, that cut applies to everyone equally. A person who claimed at 62 and receives $1,680 per month would see that check drop to roughly $1,210. A person who waited until 70 and receives $2,976 would see that check drop to roughly $2,143. The delayed check still comes out ahead by roughly $933 per month.

The Bipartisan Policy Center and the National Academy of Social Insurance have both studied this. Their conclusion: solvency concerns rarely change the best claiming age.

Congress has faced this before. In 1983, the trust fund was within months of running out. Congress acted.

That does not mean the same thing will happen this time. But claiming early out of fear locks in a permanently smaller benefit based on a problem that may be solved before it arrives.

How to avoid it: Separate the policy question (“will Congress act?”) from the personal question (“what claiming age is best for my household?”). The personal question can be answered with your own numbers.

Mistake 3: Treating Your Retirement Date and Your Social Security Claiming Date as the Same Decision

This seems so obvious that most people never question it. You retire. You turn on Social Security. They happen together.

They do not have to.

You can retire at 62 and wait until 67 or 70 to claim. You cover expenses by drawing from savings, a pension, or a Roth IRA. When the larger Social Security check kicks in, you draw less from savings going forward.

Research from Kitces and Pfau suggests this “bridge” approach can be one of the most effective ways to extend how long your savings last. Spend a little more from savings early so you spend a lot less later. The larger check does the heavy lifting for the rest of your life.

Most people never consider this because nobody told them the two decisions could be separated.

How to avoid it: Ask yourself: “Can I cover my expenses for a few years without Social Security?” If the answer is yes, or even maybe, separating the two decisions is worth exploring.

Mistake 4: Making the Social Security Decision Alone Instead of as a Household

This is the mistake with the longest consequences. And the person who makes it is usually not the person who lives with it the longest.

When one spouse dies, the surviving spouse keeps the larger of the two Social Security checks and loses the smaller one. If the higher earner claimed early, the survivor benefit is permanently capped at that reduced amount. For the rest of the surviving spouse’s life.

In most married couples, the higher earner is the husband. Statistically, the wife lives longer. A woman who is 62 today has an average life expectancy of roughly 86, compared to roughly 83 for a man of the same age (SSA actuarial tables). The person who chooses when to claim is often not the person who depends on that decision for the most years.

But the impact goes beyond the check. When one spouse dies, three things change at once. The survivor files taxes as single, with narrower brackets and higher rates.

The IRMAA threshold drops from $218,000 (joint) to $109,000 (single). And household expenses do not drop by half. The mortgage, taxes, utilities, and insurance stay the same.

Delaying the higher earner’s claim to 70 is one of the most effective forms of survivor protection available. It costs nothing except patience and a bridge plan.

How to avoid it: Have this conversation together. Ask: “If one of us dies first, what is the other person’s monthly income?” If the answer surprises you, the claiming decision may need to change.

One more thing: If you were married for 10 years or more and are now divorced, you may be eligible to claim benefits on your ex-spouse’s record, even if they have remarried. Many divorced individuals do not know this option exists.

Mistake 5: Ignoring How Social Security Income Affects Healthcare Costs

This mistake works in two directions. Before age 65, it affects your health insurance subsidies. After 65, it affects your Medicare premiums. Most people check neither one before they claim.

Before 65: The ACA subsidy trap. If you retire before Medicare starts, you likely need marketplace health insurance. In 2026, the subsidy cliff is back. If your household income exceeds 400% of the federal poverty level (roughly $82,000 for a couple, based on 2025 FPL guidelines used for 2026 coverage), you lose the subsidy entirely.

The catch: the ACA counts 100% of your Social Security benefits as income. Not 85%. Not 50%.

All of it. Claiming at 62 can add enough income to push you over the cliff. You could lose $15,000 to $25,000 per year in premium help.

Hypothetical scenario: A couple retires at 63. One spouse claims Social Security at 62 and receives roughly $23,500 per year. Combined with $55,000 in 401(k) withdrawals and $6,000 in investment income, their ACA income reaches roughly $84,500.

That is above the roughly $82,000 cliff. They lose the entire subsidy. If they had delayed Social Security and drawn from a Roth instead, their ACA income could have stayed below the cliff.

The subsidy savings alone may have been worth more than the Social Security checks. Individual results will vary based on location, plan choice, and income sources.

After 65: The IRMAA surprise. Medicare premiums are based on income from two years prior. Social Security combined with other income can push you above the IRMAA thresholds. The surcharge can add thousands per year. Most people do not see it coming.

How to avoid it: Before claiming, add your Social Security to your other income. Compare it to the ACA threshold (if under 65) or the IRMAA threshold (if over 65). If you are retiring before 65, run two scenarios: one where you claim Social Security at 62, and one where you delay.

Compare the total cost of health insurance under each scenario. For some families, the subsidy savings from delaying are worth more than the Social Security checks themselves.

Mistake 6: Wasting the Roth Conversion Window by Claiming Social Security Too Early

This is the planning mistake most families have never heard of. It may also be the most expensive one over a 30-year retirement.

The years between retirement and age 73 are often your lowest-income years. If you delay Social Security, your taxable income during those years may be low enough to move money from a traditional 401(k) into a Roth IRA at the 12% or 22% bracket.

Why does that matter? Every dollar you convert is a dollar that does not become a Required Minimum Distribution at 73. Smaller RMDs mean lower taxes in your 70s and 80s.

Lower taxes mean lower IRMAA. And Roth withdrawals are tax-free, which gives you more control over your income for the rest of your life.

If you claim Social Security at 62, that income fills up the lower brackets. Roth conversions then happen at a higher rate, or not at all. The window closes at 73 when RMDs begin. Once it is gone, it is gone.

How to avoid it: Ask your advisor whether you have a Roth conversion window. If you are between 59 and 73 with lower income than you expect to have later, the answer may be yes. This window does not last forever.

Mistake 7: Assuming You Cannot Fix a Social Security Claiming Decision You Regret

Many people who claimed early carry quiet regret. They believe the decision is locked in forever. In some cases it is. But not always.

Option 1: Withdrawal (within 12 months of your first claim). If you claimed within the last 12 months, you can withdraw your application, repay everything you received, and restart later at a higher benefit. You can only do this once. After 12 months, the option closes permanently.

Option 2: Voluntary suspension (after full retirement age). If you have already reached your full retirement age (67 for those born in 1960 or later), you can ask the SSA to suspend your benefit. During the suspension, you earn delayed retirement credits of 8% per year. Your benefit grows until you restart or turn 70, whichever comes first.

You do not have to repay anything. You can resume at any time.

There is an important trade-off with suspension. While your benefits are paused, any spouse or dependent collecting on your record also has their benefits paused. Divorced spouses are the exception and can continue receiving benefits.

Neither option works for everyone. But for those who qualify, they offer a real chance to improve a decision that felt permanent.

How to avoid the mistake: If you claimed early and wish you had not, check whether you are within the 12-month withdrawal window. If not, check whether you have reached full retirement age and can suspend. A 30-minute conversation can tell you whether either one applies.

If You Already Claimed and Cannot Change It

If neither the withdrawal nor the suspension option applies to you, your benefit is set. But these mistakes still matter, because the coordination around your benefit is not set. You can still adjust your withdrawal sequence to reduce taxes.

You can still manage income to stay below IRMAA thresholds. You can still review your spouse’s survivor picture and plan around it. The claiming decision may be made.

The rest of the plan is still in your hands.

The Common Thread Behind All Seven Social Security Mistakes

These seven mistakes share one thing. None of them happen because people are careless. They happen because the Social Security decision looks simpler than it is.

One question. Three ages. Pick one.

But underneath that one question are six consequences that affect your taxes, your healthcare, your savings, your spouse, and your ability to reduce your lifetime tax bill. The families who avoid these mistakes are not the ones with the most money or the best luck. They are the ones who saw the full picture before they filed.

If something in this article raised a question or pointed to a mistake you may be making, that is worth exploring before the consequences become permanent.

This article is part of The Confident Retirement Brief, a weekly newsletter from Langan Financial Group. Subscribe here to receive clear thinking for confident financial decisions, delivered every Thursday.

Related: One Social Security Decision, Six Financial Consequences

ABOUT THE FINANCIAL PLANNING AUTHOR

Alexander Langan, J.D., CFBS, serves as the Chief Investment Officer at Langan Financial Group. In this role, he manages investment portfolios, acts as a fiduciary for group retirement plans, and consults with clients regarding their financial goals, risk tolerance, and asset allocation.

With a focus on ERISA Law, Alex graduated cum laude from Widener Commonwealth Law School. He then clerked for the Supreme Court of Pennsylvania and worked in the Legal Office of the Pennsylvania Office of the Budget, where he assisted in directing and advising policy determinations on state and federal tax, administrative law, and contractual issues.

Alex is also passionate about giving back to the community, and has participated in The Foundation of Enhancing Communities’ Emerging Philanthropist Program, volunteers at his church, and serves as a board member of Samara: The Center of Individual and Family Growth. Outside of work and volunteering, Alex enjoys his time with his wife Sarah, and their three children, Rory, Patrick, and Ava.

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