Most Common Pitfalls When Choosing Social Security Benefits

Choosing when and how to claim Social Security is one of the most important retirement decisions you’ll make—and one of the easiest to get wrong. As of 2026, the rules and earnings limits have been updated, but the most common mistakes remain the same. Avoiding these Social Security pitfalls can add tens of thousands of dollars to your lifetime retirement income.

1. Claiming Too Early Without a Plan

The biggest mistake is claiming at 62 “just because you can.” For every month you claim before your Full Retirement Age (FRA—between 66 and 67, depending on birth year), your benefit is permanently reduced. Waiting past FRA up to age 70 earns delayed retirement credits of about 8% per year. Many retirees lock in a lower benefit without comparing long-term scenarios, especially for the higher-earning spouse.

2. Ignoring the 2026 Earnings Test

If you work and claim before FRA, the Retirement Earnings Test can temporarily reduce or eliminate your checks. In 2026, if you’re under FRA all year, Social Security withholds $1 for every $2 you earn above the annual limit (which is adjusted each year; see SSA.gov for current numbers). In the year you reach FRA, a higher limit applies, and $1 is withheld for every $3 over that limit. Many people are surprised when their first year of benefits is reduced or withheld because they didn’t coordinate their work income and claiming date.

3. Not Coordinating With a Spouse

Social Security is a household decision, not an individual one. Common pitfalls include:

• The higher earner claiming early, permanently shrinking the survivor benefit.

• Overlooking spousal benefits (up to 50% of the higher earner’s FRA benefit if claimed at FRA).

• A well-designed strategy often involves the higher earner delaying, while the lower earner claims earlier if needed.

4. Overlooking Taxation of Benefits

As other income rises (pensions, wages, IRA withdrawals), up to 85% of your Social Security can become taxable. Poor coordination of withdrawals, Roth conversions, and claiming age can push you into a higher tax bracket, reducing your net benefit.

5. Treating Social Security in Isolation

Many people decide based on rules of thumb instead of integrating Social Security with their full retirement plan: savings, pensions, health, life expectancy, and legacy goals. The best strategy is customized, using current 2026 rules, earnings limits, and your full financial picture.

Before you file, run detailed projections—or work with a fiduciary advisor—to avoid these common Social Security claiming mistakes and to maximize your lifetime retirement income.

This is being provided for informational purposes only and should not be construed as a recommendation to buy or sell any specific securities. Past performance is no guarantee of future results, and all investing involves risk. The views expressed are those of Silver State Wealth Management and do not necessarily reflect the views of Mutual Advisors, LLC, or any of its affiliates. Investment advisory services offered through Mutual Advisors, LLC, DBA Silver State Wealth Management, an SEC registered investment adviser. Silver State Wealth Management nor any of its members, are tax accountants or legal attorneys, and do not provide tax or legal advice. For tax or legal advice, you should consult your tax or legal professional.