5 Costly Mistakes That Could Shrink Your 2026 Social Security Payment Date or Amount

Did you just check your Social Security statement and notice something doesn't look right? Are you worried about making wrong choices that could cost you thousands? This is where you need to understand the common pitfalls.

Many people make avoidable errors when claiming Social Security benefits. These mistakes can reduce your monthly payments permanently. They can also delay when you receive your first check. Read on and let's explore the five biggest mistakes you should avoid.

Filing at the Wrong Age

One of the most expensive mistakes is claiming benefits too early. You can start collecting Social Security at age 62. However, doing so will reduce your monthly payment by up to 30%. This reduction lasts for the rest of your life.

On the other hand, waiting until age 70 can increase your benefits significantly. For each year you delay past your full retirement age, your payment grows by 8%. This means waiting just a few years could add hundreds of dollars to your monthly check.

Your full retirement age depends on when you were born. For most people retiring in 2026, it falls between 66 and 67. Claiming before this age means accepting permanently lower payments. Think carefully about your health, savings, and life expectancy before deciding.

Not Coordinating With Your Spouse

Married couples often miss out on thousands by not planning together. Social Security offers special spousal and survivor benefits. These can maximize your household income if used correctly.

The higher earner should usually delay claiming as long as possible. This strategy protects the surviving spouse later. When one partner dies, the survivor receives the higher of the two benefit amounts. Therefore, maximizing the larger benefit helps both people.

You might also qualify for spousal benefits while your own benefit grows. This allows you to collect up to 50% of your spouse's benefit first. Later, you can switch to your own higher amount. Divorced individuals may also claim on an ex-spouse's record if the marriage lasted 10 years.

Failing to explore these options can cost tens of thousands over your lifetime. Consider consulting a financial advisor who specializes in Social Security planning.

Continuing to Work Without Understanding the Earnings Test

Many people don't realize that working while collecting benefits can reduce payments temporarily. The Social Security earnings test applies if you claim before your full retirement age. This test can withhold part or all of your benefits.

For 2026, you can earn up to $23,400 without penalty if you're under full retirement age. Beyond this limit, Social Security withholds $1 for every $2 you earn. In the year you reach full retirement age, the limit increases to $62,160. The withholding drops to $1 for every $3 earned.

These withheld benefits aren't lost forever, though. Social Security will recalculate your payment at full retirement age. You'll receive credit for the months benefits were withheld. Still, this creates cash flow problems if you're not prepared.

Once you reach full retirement age, the earnings test disappears completely. You can earn unlimited income without affecting your benefits. Planning your work schedule around these rules can prevent unwanted surprises.

Forgetting About Taxes on Benefits

Many retirees are shocked to learn that Social Security benefits can be taxable. Up to 85% of your benefits might be subject to federal income tax. This depends on your combined income from all sources.

Your combined income includes your adjusted gross income plus nontaxable interest and half your Social Security benefits. If this total exceeds certain thresholds, taxes apply. For individuals, the threshold starts at $25,000. For married couples filing jointly, it begins at $32,000.

Some states also tax Social Security benefits at the state level. This adds another layer of complexity to your tax planning. Failing to account for these taxes can leave you short on cash.

Consider strategies to minimize taxes on your benefits. These might include managing withdrawals from retirement accounts carefully. Converting traditional IRAs to Roth IRAs before claiming benefits can also help. Working with a tax professional ensures you keep more of your money.

Not Reviewing Your Earnings Record for Errors

Social Security calculates your benefit amount using your 35 highest-earning years. If your earnings record contains mistakes, your payment could be lower than it should be. Errors happen more often than you might think.

Common problems include missing years of earnings, incorrect salary amounts, or name mismatches. These errors usually stem from employer reporting mistakes or data entry problems. Even small errors can reduce your lifetime benefits by thousands.

You should review your earnings record at least once a year. You can access it for free through your online Social Security account. Compare it against your tax returns and W-2 forms. If you spot errors, report them immediately.

The Social Security Administration can correct errors, but you need documentation. Keep old tax returns, pay stubs, and W-2 forms for this purpose. Acting quickly makes corrections easier since older records become harder to verify.

Protecting Your Future Income

These five mistakes can seriously impact your retirement security. Taking time to understand Social Security rules pays off handsomely. Even small improvements in your benefit amount compound over decades.

Start by creating your online Social Security account if you haven't already. Review your earnings history and estimated benefits regularly. Consider how your claiming age affects your monthly payment. Discuss strategies with your spouse if you're married. This will eventually help you with maximizing the returns that you are supposed to get.

Don't forget to factor in taxes and the earnings test if you plan to work. These elements can significantly affect your actual take-home amount. Planning ahead helps you avoid costly surprises.

Your Social Security benefit is likely one of your largest retirement assets. Treating it carefully makes sense. Avoiding these common mistakes ensures you receive every dollar you've earned. Take control of your benefits now and secure a more comfortable retirement.