4 Key Signs Your Social Security Check Might Be Smaller Than You Thought

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Whether you’re currently joining the nearly 70 million Americans who are receiving Social Security benefits or will be among them in the future, you may want to start estimating how much you’ll receive each month. Having this steady source of income during retirement can provide you with some financial relief, knowing you’ll have money coming in to help pay expenses. 

However, there are several reasons why you could be surprised (or even disappointed) to find out that your Social Security payments are smaller than you expected.

Your Earnings Weren’t Great

How much you earn throughout your working years plays a huge role in how much you’ll receive in Social Security benefits. That’s because a portion of the tax typically goes towards Social Security. The less you pay, the less you’ll receive in benefits. 

Keep in mind that there is an earnings cap, and Social Security only taxes income up to the annual maximum taxable amount. Any earnings above this limit, even millions, will not increase your future benefits.

You’re Still Working

You can claim Social Security benefits as early as age 62 and still work, but it could cost you if you earn over the income threshold set by the Social Security Administration. As of 2025, if you earn over $23,400, $1 of your paycheck will be deducted for every $2 you earn over that amount. 

If you’ve reached full retirement age (FRA), which is typically 67 years old, the income threshold goes up to $62,160. Then, your paycheck will be $1 less for every additional $3 you earn. 

You Took Your Benefits Early

Although you can claim Social Security benefits starting at age 62, your monthly paychecks will be smaller by a certain percentage.

For example, if you were born after 1960, your benefit could be 30% lower than if you were to claim benefits starting at age 67, your FRA. So, if you expected to receive $2,500 in monthly benefits, your paycheck could go down to $1,750 per month, a $800 a month difference. 

Some may opt to delay taking their benefits until age 70, when the monthly paychecks could be higher. You’ll receive 8% added to your initial benefit amount each full year you delay taking Social Security benefits.

Say you decide to start taking Social Security checks at age 68. Using the previous example, your paycheck could go up to $2,700 each month, or an additional $200. 

You Worked Less Than 35 Years

The Social Security Administration (SSA) calculates the amount you’ll receive based on your highest 35 years of earnings. It will average your earnings and use a complex formula to come up with your payments at your FRA.

For instance, if you decide to retire or take time off between careers, there may be some earning years where the income on record is $0. This will affect how much you will receive because having no income will bring down the average. 

The less you’ve worked, the more zero-income years will be factored into your average and could mean a much smaller Social Security paycheck. 

Caitlyn Moorhead contributed to the reporting for this article.

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