For many retirees, Social Security benefits are a foundational part of their financial security. But navigating the rules and regulations can be complex, and a single mistake could potentially cost you tens of thousands of dollars over your lifetime.

Here are three of the most common Social Security mistakes to avoid.

1. Claiming Benefits Too Early

The most tempting and most costly mistake is claiming your benefits as soon as you are eligible at age 62. While it might seem like a good idea to get that money sooner, you’re locking in a permanently reduced monthly payment. Your “Full Retirement Age” (FRA) is the age at which you are entitled to 100% of your earned benefits, which is 67 for anyone born in 1960 or later.

Claiming at 62 can reduce your benefit by as much as 30%. On the other hand, for every year you delay claiming after your FRA, your benefit increases by 8% until you reach age 70. This is a guaranteed return on your money that is very difficult to beat with other investments.

While there are valid reasons to claim early—such as a health issue or a need for immediate income—it’s crucial to understand the long-term financial consequences of your decision.

2. Failing to Coordinate with Your Spouse

For married couples, Social Security is not a solo decision. The timing of your and your spouse’s claims can have a significant impact on your combined lifetime benefits. One key area to consider is spousal benefits. Even if one spouse has little to no work history, they may be eligible for up to 50% of the other’s full retirement benefit.

Additionally, delaying the higher earner’s benefit until age 70 can provide a valuable safety net. This is because when one spouse passes away, the survivor is typically eligible to receive 100% of the deceased’s benefit. By maximizing the higher earner’s payment, you ensure that the surviving spouse will have a larger monthly income for the rest of their life.

Ignoring these coordinated claiming strategies can leave a significant amount of money on the table.

3. Not Checking Your Earnings Record

The Social Security Administration calculates your benefit based on your 35 highest-earning years. If you worked fewer than 35 years, a “zero” will be added for each missing year, which can lower your average.

What many people don’t realize is that errors can exist in their earnings record. A missing or incorrect year of income could lead to a smaller benefit than you’re entitled to. It is wise to create a free online “my Social Security” account on the SSA website to review your earnings history and ensure it’s accurate. If you find any discrepancies, you can contact the SSA with your W-2 or tax returns to get them corrected.

Final Thoughts

Social Security benefits are a critical component of a secure retirement. By avoiding these common mistakes—claiming too early, failing to coordinate with a spouse, and neglecting to check your earnings record—you can maximize your benefits and build a more stable financial future.