Oops! You Could Shrink Your Social Security Checks by Doing These Things.

If you’re getting close to retirement and don’t have much savings, there’s a harsh reality you might soon need to face: Social Security could end up being your main source of income. And if that’s the case, it’s important to get as much money out of the program as you can.

But there are certain things you might do, or not do, that could cause your Social Security benefits to shrink. Here are a few scenarios where your checks could end up being smaller than you want them to be.

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1. Filing before reaching full retirement age

The monthly Social Security benefit you’re eligible for in retirement is based on your wage history. But your filing age also helps determine what benefit you get.

You can sign up for Social Security at any age once you turn 62. But if you don’t wait for full retirement age to arrive before claiming benefits, those monthly checks will be reduced. Full retirement age is 67 if you were born in 1960 or any year after.

If you happen to claim Social Security ahead of full retirement age and regret it after the fact, you’re not necessarily stuck with slashed benefits for life. Thanks to a little-known do-over option, you can actually withdraw your application for benefits, repay the money you received, and file for Social Security again at a later age.

But clearly, you need to act quickly to take advantage of this option. And if you don’t have the money to repay the benefits you collected, you may be out of luck.

2. Working while collecting benefits before full retirement age

Seniors are allowed to earn money from a job and also collect Social Security. But if you’re in this situation and you haven’t yet reached full retirement age, you’ll be subject to an earnings test. And earning too much money could result in temporarily withheld benefits that reduce your monthly checks in the near term.

The limits of the earnings test change every year. In 2026, you’ll have $1 in Social Security withheld per $2 of income above $24,480 if you will not reach full retirement age by the end of the year. If you will reach it by the end of the year, you’ll have $1 in Social Security withheld per $3 of income above $65,160.

Now, there are a few nuances here to be aware of. First, it’s only earnings from a job that count toward the above limits. If you opt to withdraw, say, $30,000 a year from your IRA or 401(k), it won’t count against you.

Also, withheld benefits for surpassing the earnings thresholds above are not lost forever. Once you do reach full retirement age, your monthly benefits will typically be recalculated. And that withheld money will be repaid to you in the form of larger monthly checks.

In the near term, though, working while collecting benefits could reduce those checks. It’s important to be aware of how much money you can earn from year to year before that happens.

3. Not correcting mistakes on your earnings record

As mentioned above, your Social Security benefit in retirement is unique to you. It’s based on how much income you earned during your 35 highest-paid years in the labor force.

What this means, though, is that if you have missing income or income that was reported in a lower amount than what you actually earned, it could result in smaller benefits. And the only way to know if there’s incorrect information on file for you is to review your Social Security earnings statements.

To access those statements, you’ll need to create an account at SSA.gov. Once you do, you can review each statement for accuracy. Those statements should also include an estimate of your future Social Security benefits so you know what to expect.

Safeguard those benefits so they’re not reduced

Social Security may end up being the one retirement income source that’s guaranteed to pay you for life without shrinking. In fact, if anything, Social Security benefits are eligible for an annual cost-of-living adjustment, whereas the withdrawals you take from savings may need to be reduced over time if your portfolio shrinks due to poor performance.

For this reason, it’s important to do what you can to avoid getting less Social Security. That means not signing up for benefits too early, being careful about working if you’re collecting benefits prior to full retirement age, and making sure your earnings record does not contain a glaring mistake.

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