Retirement Social Security

Claiming Social Security Without Knowing These 4 Hidden Rules Could Be a Costly Mistake

For an income stream as important as Social Security, it's important to know your stuff.

By Maurie Backman , Edited by Laura Hohenstein

Updated Oct. 21, 2026

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Even if you're someone who saves in an IRA or 401(k) on a regular basis, Social Security might end up playing a big role in your retirement plan. That's why it's so important to not only claim benefits at the right time, but also understand how the program works.

Some of Social Security's rules are pretty well-known. For example, many retirees are aware that claiming benefits prior to full retirement age (FRA) results in reduced monthly checks, while delaying benefits past FRA results in boosted checks. You may also be aware that your Social Security benefits in retirement are calculated based on your specific career wages.

But some of Social Security's rules are less obvious, and not knowing these four in particular could lead you to make poor financial choices that hurt you during retirement.

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How the earnings test works

You're allowed to earn money from a job while receiving benefits from Social Security. Once you've reached FRA, you can earn any dollar amount without a negative impact on your monthly checks.

But if you work while collecting Social Security prior to FRA, you'll be subject to an earnings test that dictates how much money you can make before benefits are withheld from your monthly payments. The limit of what you can earn changes every year, and it also depends on whether you'll reach FRA by the end of the year or not.

It's important to know that Social Security's earnings test exists, and to check the limits each year. You may decide to keep your income under a certain threshold to avoid having to deal with withheld benefits. Or, if you decide it's worth it to earn a larger wage, it's important to have a heads-up that your Social Security checks may not hit your bank account in full.

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How the do-over option works

Generally, claiming Social Security before FRA results in a permanent reduction to those monthly checks. But if you exercise Social Security's do-over option, you may not get stuck with whittled-down payments for the rest of your life.

Social Security's do-over lets you withdraw your application for benefits and file again at a later point in time. If you reduce your benefits by claiming them at 62, you could, for example, exercise your do-over and file again at FRA.

But to take advantage of this option, you also have to repay all of the money you received in benefits. And you must do that as well as withdraw your benefits application within 12 months. If you don't know this rule exists, you might spend all of your benefits right away, which could take the do-over off the table.

How spousal benefits work

If you're married or are an eligible divorcee, you may be eligible for spousal benefits from Social Security based on a current or former spouse's earnings record. But it's important to know when to claim those benefits and what they might be worth.

If you file for spousal benefits at your FRA, you'll get 50% of your spouse or ex-spouse's FRA benefit. If you file early, which you can do starting at 62, your spousal benefits will be reduced.

But there's no incentive for delaying a spousal benefit claim past FRA. You won't boost your monthly checks like you would if you were claiming Social Security based on your own earnings record. So once FRA arrives, you might as well sign up.

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How survivor benefits work

If you're married and are the higher earner in your household, your spouse will generally be entitled to survivor benefits from Social Security if they outlive you. Those benefits will equal 100% of your monthly checks, no matter what age you file at. If your spouse gets spousal benefits and you pass away, their spousal checks should get bumped up to survivor benefits.

That's partly what makes your claiming age so important if you're married. Your filing age doesn't just have an impact on your monthly benefits. It also determines what monthly benefit you might leave your spouse to live on.

Bottom line

Social Security is one of the most important benefits for seniors. Without those checks, many older Americans would struggle to pay their bills.

The more you know about Social Security ahead of retirement, the easier it should be to file for benefits at the right time and manage your finances well once you start collecting those checks. So it pays to take some time to read up on the program.

Of course, it's not a given that every rule above will apply to you. If you don't intend to work once you start getting Social Security, you won't have to worry about the earnings test. And if you aren't married, spousal and survivor benefits don't have to be a concern. But it's a good idea to study Social Security's nuances as they apply to your situation so you're able to go into retirement feeling prepared.

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