Personal Finance

3 Things Too Many People Constantly Get Wrong About Social Security

Maurie Backman

Published: January 21, 2025 10:52 am

These days, millions of seniors rely on Social Security to make ends meet in retirement. And given the way inflation continues to mess with working Americans’ finances, a lot more people will likely find themselves reliant on Social Security in the future to help fund their retirements in the absence of being able to save as well as they’d like to.

That’s why it’s so important to understand the ins and outs of Social Security. And part of that means not buying into these specific mistruths.

1. The longer you delay your claim, the better

It’s true that delaying your Social Security claim past your full retirement age (FRA) results in a boosted monthly benefit for life. In fact, for each year you postpone your filing beyond that point, your monthly benefit gets an 8% increase.

But the Social Security Administration (SSA) won’t let you delay your filing and get credit for it indefinitely. Once you turn 70, you lose the option to keep growing your monthly benefit via a delayed filing.

What this means is that while you won’t be forced to sign up for Social Security at age 70, there’s also zero reason not to claim your benefits at that point. So while you can plan to delay your claim to some degree, don’t plan to hold out beyond your 70th birthday.

2. Once you file early, you’re stuck with a reduced benefit for life

You’re allowed to get at your monthly Social Security benefits before reaching FRA. Once you turn 62, it’s possible to file, but you’ll be accepting reduced monthly payments.

In fact, for each month you sign up for Social Security prior to FRA, your monthly benefit is reduced slightly. But filing many months early will inevitably leave you with that much less money on a monthly basis.

A lot of people end up claiming Social Security early and regretting it later. If that happens to you, don’t assume you’re stuck with a reduced benefit forever.

All Social Security claimants get one do-over in their lifetime. If you withdraw your application for benefits and repay the SSA all of the money it paid you within a year, you’ll get the opportunity to file again at a later point in time — and lock in a higher monthly check as a result. But do keep that 12-month deadline in mind so you don’t lose out on the opportunity.

3. You can’t get benefits under any circumstances if you never worked

Generally, people qualify for Social Security by working and paying taxes on their wages. But there’s another ticket to getting Social Security in retirement — collecting spousal benefits.

You can claim spousal benefits on a current or former spouse’s record. However, that doesn’t mean the SSA will pay you the exact same benefit as your current or ex-spouse.

Rather, your spousal benefit maxes out at 50% of what your spouse is entitled to at their FRA. And if you’re married, you should know that you’ll need to wait for your spouse to claim Social Security until you’re able to file for spousal benefits yourself.

It’s easy to let some of Social Security’s lesser-known rules fall by the wayside. But the more you know about Social Security, the better equipped you’ll be to make the most of it once you’re old enough to file for benefits. So keep reading up on the program to go into retirement prepared.