For many Americans, Social Security is the cornerstone of retirement income. Nearly 90% of retirees rely on it to cover at least part of their monthly expenses. Yet too often, people claim benefits without a clear strategy and unintentionally leave thousands of dollars behind. With the right planning, Social Security can become not only a safety net but also a powerful foundation for your retirement lifestyle. 

Here are three of the most common mistakes people make and how you can avoid them. 

1.Claiming Too Early Without a Plan 

You can start benefits as early as age 62, but doing so permanently reduces your monthly check. For someone with a full retirement age of 67, claiming at 62 means receiving about 70% of your full benefit for life. On the other hand, delaying until age 70 increases your monthly income by roughly 24% or more compared to claiming at full retirement age. 

The choice of when to start should not be based solely on reaching a birthday. Your health, income needs, longevity expectations, and other assets all play an important role. For some, early claiming provides peace of mind and flexibility. For others, waiting means greater long-term financial security. What matters is that the decision is made as part of a larger plan rather than out of habit or impatience. 

2. Overlooking Spousal and Survivor Benefits 

Married couples have more claiming options than many realize. A spouse may be eligible for up to 50% of their partner’s benefit, and survivor benefits can help protect the financial stability of the surviving spouse after a loss. Coordinating when each spouse claims can increase total household income over time. 

For example, one spouse may choose to delay claiming in order to maximize the survivor benefit, while the other claims earlier to provide income in the meantime. Every household situation is unique, and the right strategy depends on health, age differences, and income needs. Ignoring these options often results in missed opportunities. 

3. Ignoring the Tax Impact 

Up to 85% of Social Security income may be taxable depending on your overall retirement income. If your retirement plan includes withdrawals from IRAs, pensions, or investment accounts, the timing of those withdrawals can affect how much of your Social Security is taxed. 

A thoughtful withdrawal strategy can help balance income from taxable, tax-deferred, and tax-free accounts. For instance, drawing more from Roth accounts earlier in retirement could reduce taxable income and lower the percentage of Social Security that is subject to tax. In other cases, carefully sequencing withdrawals can stretch the life of your savings while minimizing your tax bill. 

4. The Bottom Line

Social Security is more than just a government benefit. It is a key part of your overall retirement strategy and deserves careful attention. By avoiding these common mistakes—claiming too early without a plan, overlooking spousal benefits, and ignoring tax implications—you can make better decisions that protect your income and give you greater confidence in retirement. 

Every household’s situation is different. That is why working with an advisor who understands how Social Security fits within a larger financial plan can make such a difference. A coordinated approach can help ensure that your benefits support the retirement you have worked hard to achieve. 

What Issues Should You Consider With Social Security? 

Filing for Social Security is one of the most important retirement decisions you’ll make. The right choice depends on more than just age — it also involves health, spousal benefits, tax planning, and now, the recent Social Security Fairness Act. 

Our Social Security Retirement Benefits Checklist highlights the key questions to review before making your decision, including: 

• Whether to file early or delay benefits 
• Claiming strategies for spouses, ex-spouses, and survivors 
• How benefits interact with other tax-planning goals 

The new law, signed January 5, 2025, will affect the Government Pension Offset (GPO) and Windfall Elimination Provision (WEP). While some details remain to be clarified, we are monitoring the updates closely.

If you’d like to stay informed on how these changes may affect you, please reach out to our team. 

Disclosures: This material is for informational purposes only and should not be considered investment advice. Past performance is no guarantee of future results. Investing involves risk, including the potential loss of principal.