4 Reasons Your Social Security Check Might Be Smaller Than You Expected

About 69 million people receive Social Security benefits, yet many are surprised when their monthly checks come in lower than expected. That usually happens because your benefit reflects your work history and timing, not the paycheck you earned before retirement.

Here's a closer look at four key factors that can chip away at your benefit amount and what they mean for your retirement plan.

Earnings history

Social Security benefits are based on your earnings, basically the amount you paid into the system over your working life. If you spent decades in lower-paying jobs or had a lot of years with minimal income, your average indexed earnings could be on the lower side, and so could your benefit.

Think of it this way: You and your employer contribute 6.2% of your wages each into Social Security during your working years. If your wages were modest, those contributions were modest too, ultimately resulting in a smaller payout when you retire.

Working while claiming

Plenty of people start taking Social Security in their early 60s and still keep a foot in the workforce, with some part-time, some nearly full-time. There's nothing wrong with that. But if you plan to earn while collecting, you'll want to understand the earnings test, because it can temporarily shrink your benefit when your income crosses certain limits.

Here's how it works: If you haven't yet reached your full retirement age (FRA), which is 67 for those born in 1960 or later, Social Security sets an annual earnings limit. In 2025, that limit is $23,400 for the year, or about $1,950 per month.

If you earn less than that, you can receive your full Social Security payment with no reduction. But if you earn more than $23,400 in a year while collecting benefits, Social Security will withhold some of your benefit amount. Specifically, they deduct $1 in benefits for every $2 you earn above the limit.

For example, suppose you're 63, retired, but working part-time, and you earn $5,000 over the annual limit. In that case, about $2,500 of your benefits for the year would be withheld.

In the calendar year you reach full retirement age, the limit jumps to $62,160, and the withholding rate changes to $1 for every $3 above that amount.

Once you are at or past full retirement age, there is no earnings limit, and you can earn any amount with no reduction in benefits.

Claiming early

The age you claim benefits can dramatically change the size of your monthly check. You have the option to claim as early as age 62. But there's a catch: If you claim early, your benefit is permanently reduced. The rationale is that starting sooner means you'll receive more payments over your lifetime, so each one is smaller.

Suppose the monthly benefit you'd get at full retirement age is $1,000. If your FRA is 67 and you start at 62, your check would be reduced to about $700 per month, roughly a 30% drop. For those with an FRA of 66 (born 1943–1954), the reduction for claiming at 62 is about 25%, so a $1,000 FRA benefit becomes about $750.

It's also worth noting that the opposite is true. If you delay benefits past your FRA, your monthly check grows larger. In fact, for each year you delay up to age 70, you get roughly an 8% increase in your benefit. But waiting is not feasible or desirable for everyone, so many people usually claim early.

Fewer than 35 working years

Social Security looks at your 35 highest-earning years to figure out your benefit. If you have fewer than 35 years of work, the missing ones are filled in with zeros, and that can pull your average down.

For example, imagine someone who worked and paid into Social Security for 30 years, then retired. In the benefit calculation, that person will have 30 years of real earnings and 5 years of "$0" earnings to make up the 35-year benchmark.

Even if the hypothetical worker had decent wages in those first 30 years, the subsequent five zeros will lower the average considerably, resulting in a smaller monthly benefit. In contrast, someone who worked a full 35 years won't be penalized by zeros, as Social Security will only average their 35 highest years.

If your check seems smaller than expected and you had a shorter career or significant gaps in employment, this is likely a culprit.

Bottom line

Seeing a smaller check than expected can sting, but you still have room to improve your outcome. For instance, picking up an extra year or two of earnings might replace some low-earning years from decades ago or fill in a zero year.

Waiting until full retirement age, or holding out until 70, can help you avoid early-filing cuts and give your benefit time to grow. You can also review your yearly earnings on your Social Security account, and if something looks off, request a correction. Even small gaps can affect your benefit.

Small steps like these can lead to a bigger, steadier check down the road and set you up for a stress-free retirement.