By Keith Speights – May 10, 2026 at 4:44AM EST
Key Points
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Some individuals get lower benefits because of when they claim Social Security.
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Others continue working after claiming benefits early or fail to coordinate benefits with their spouses.
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Many retirees leave Social Security money on the table because they don’t check for errors in their earnings records.
1. You claimed at 62 without crunching the numbers
It’s tempting to heed the advice of the Steve Miller Band’s 1976 hit song, “Take the Money and Run.” Many Americans do just that, claiming Social Security benefits as early as they can at age 62. However, doing so without crunching the numbers can be quite costly.
Social Security reduces benefits by up to 30% for anyone with a full retirement age of 67 who claims benefits at 62. This isn’t a temporary reduction until you reach your full retirement age; it’s for life.
To be sure, claiming at age 62 makes sense for many people. However, deciding without fully evaluating the financial consequences is ill-advised — and it just might be the most expensive retirement mistake many Americans make.
2. You overlooked the delayed retirement credit bump
On a related note, you could be permanently lowering your benefits by choosing to claim Social Security at your full retirement age without analyzing the financial impact. The Social Security Administration (SSA) offers delayed retirement credits for those who wait to collect their benefits until after their normal retirement age.
Your benefits will increase by 8% each year that you wait to claim Social Security after your full retirement age, up through age 70. For retirees who don’t absolutely need their benefits at age 67 and expect to live at least into their 80s, pushing back when you claim benefits can boost your lifetime benefits considerably.
3. You haven’t coordinated benefits with your spouse
One of the most ly reasons married couples leave Social Security benefits on the table is that they don’t coordinate their benefits with their spouses. Optimizing spousal benefits, as well as survival benefits, requires thinking through the exact timing of each spouse’s Social Security filing.
The best strategy for most couples is for the higher-earning spouse to delay claiming Social Security as long as possible (ideally to age 70). Claiming early could reduce benefits for both spouses.
4. You kept working without factoring in the earnings test
Did you claim Social Security benefits but kept working? If you earn too much, you will quickly learn that it doesn’t pay off as much as you might have expected.
Social Security applies an earnings test to anyone who continues working after claiming benefits before their full retirement age. In 2026, SSA withholds $1 for every $2 earned above $24,480 in any year before you reach your full retirement age. The agency withholds $1 for every $3 earnings above $65,160 during the year you reach your full retirement age.
There’s a silver lining here, though. You won’t lose this money forever. SSA will recalculate your benefits once you reach your full retirement age and repay the previously withheld amounts over time. Still, failing to factor in the earnings test can significantly impact how much money you anticipate making during the early part of your retirement.
5. You haven’t checked your earnings record for errors
Another mistake many Social Security beneficiaries make is failing to check for SSA errors. Missing or incorrect earnings can reduce your monthly benefit.
The reason why is that SSA calculates Social Security retirement benefits based on your 35 highest-earning years. If the agency used incorrect information in this calculation, your benefit will be lower than it should be.
This potential problem is easily avoided. All you need to do is create a “my Social Security” account if you don’t already have one. Log in to the account and compare your earnings history against your pay stubs, tax returns, or W-2 forms. If you spot a mistake, file a correction request with SSA. Your benefits will be recalculated to ensure you get the money you’re due.
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About the Author
Keith Speights is a contributing Motley Fool healthcare analyst covering publicly traded companies across pharmaceuticals, biotechnology, medical devices, technology, and marijuana. Prior to The Motley Fool, Keith was CEO of Constant Care Technology, a healthcare technology company; vice president of American HealthTech, a healthcare software company; and a director of operations for Blue Cross Blue Shield of Mississippi, a health insurer. He holds a B.S. in Industrial Engineering from Mississippi State University.
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