Social Security Pitfalls to Watch Out For

Claiming Social Security without a strategy could reduce your lifetime benefits, making careful planning essential.

Published: 5/19/2026, 9:45:00 AM EDT

Social Security Pitfalls to Watch Out For — The age you claim benefits, tax exposure, and earnings limits can all shape how much Social Security income you ultimately keep. (Mehaniq/Shutterstock)

After spending your entire adult life working and paying into the Social Security system via payroll taxes, you may be ready to start collecting your share.

And it’s a major milestone. Social Security benefits support more than 73 million Americans.

But before you begin collecting Social Security benefits, it’s essential to consider some important factors. For example, the age at which you start claiming benefits can greatly impact the size of your checks. Taxes can also erode your benefits if you’re not careful. And there’s a lot more.

So let’s take a closer look at some Social Security pitfalls you’d want to avoid.

Not Reviewing Your Work History

The Social Security Administration (SSA) calculates your benefit checks based on the highest 35 years of earnings. But don’t simply trust the SSA to get all these numbers right. They can make mistakes—and those mistakes could cost you.

But you can easily create a Social Security account online to take a look at how the SSA has reported your earnings history. If you find any discrepancies, you can report it to the agency.

Claiming Too Early

You can generally start collecting Social Security benefits once you reach age 62. But if you can delay claiming these benefits, your check could be larger.

For every year you wait past your full retirement age, your benefits increase by 8 percent.

But what exactly is the full retirement age?

For those born between 1943 and 1954, full retirement age is 66. And it gradually increases to 67 for those born after 1960.

But you’d get your maximum benefit if you wait until age 70. At that point, you’d be entitled to 124 percent of your full Social Security benefit.

Overlooking Taxes

As harsh as it sounds, your Social Security benefits may be taxed. In fact, up to 85 percent of your Social Security benefits can be taxed.

Whether your Social Security income is taxed depends on your combined income or provisional income.

Here’s the formula Uncle Sam uses:

Combined income = adjusted gross income (AGI) + nontaxable interest + 50 percent of your Social Security benefits.

Those filing singles who have combined income below $25,000 will have none of their benefits taxed. However, if combined income is between $25,000 and $34,000, up to 50 percent of their benefits will be taxed. And if it’s $34,000 or more, up to 85 percent of it will be taxed.

Taxpayers who are married and filing jointly and have combined income under $32,000 will have none of their benefits taxed. If combined income is between $32,000 and $44,000, up to 50 percent will be taxed. And if it’s more than $44,000, up to 85 percent would be taxed.

Fortunately, there are a few ways to minimize the impact of Social Security taxes. You basically need to reduce your combined income. You can do this by converting all or some of your traditional IRA funds into a Roth IRA, strategically withdrawing from accounts with different tax treatments, and making qualified charitable distributions.

Working While Collecting Social Security

You’re allowed to continue working while collecting Social Security benefits. After all, Social Security won’t cover all your expenses. So a lot of people need to keep working, at least part-time for income.

But if you’re collecting Social Security benefits and still getting a paycheck from an employer, you may want to do so strategically.

That’s because the SSA sets specific earnings limits when you’re working and collecting Social Security.

If you’re below full retirement age in 2026, the earnings limit is $24,480.

In this case, your Social Security benefits may be reduced by $1 for every $2 you earn above that limit.

And if you’re reaching full retirement age in 2026, the earnings limit for the months before full retirement age is $65,160.

In this situation, your Social Security benefits may be reduced by $1 for every $3 you earned beyond that limit.

But the SSA states: “Starting with the month you reach full retirement age, there is no limit on how much you can earn and still receive your benefits.”

So once you reach full retirement age, you’d receive your full benefit amount, regardless of how much you earn through work.

Not Planning With Your Spouse

Because of spousal and survivor benefit rules, Social Security can get really complicated for married couples.

This is why it’s important to strategically plan out benefits with your spouse and a financial adviser.

There are a lot of points to consider here.

For example, if one spouse worked longer or earned much more than the other, their benefits would be larger. These benefits could be maximized if the higher earning spouse were to delay collecting Social Security benefits longer, while the family lives on other sources of income. This could also provide a larger survivor benefit.

And if your late spouse was eligible for Social Security, you could begin earning survivor benefits as early as age 60.

The Bottom Line

Social Security benefits are an important source of income for millions. But these can also be very complex. Mistakes could mean leaving money on the table. So you need to consider points like delaying Social Security to claim your maximum benefits, understanding how to minimize taxation, and planning with your spouse to ensure your family makes the most out of Social Security.

The views and opinions expressed are those of the authors. They are meant for general informational purposes only and should not be construed or interpreted as a recommendation or solicitation. NTD does not provide investment, tax, legal, financial planning, estate planning, or any other personal finance advice. NTD holds no liability for the accuracy or timeliness of the information provided.

From The Epoch Times