Avoid These 4 Mistakes If You’re Claiming Social Security in 2025

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You’ve done it. You’ve reached the end of your shift and can punch out of work, permanently. Now, you’ll finally be reaping some of the rewards of a lifetime of working hard and paying your taxes. Finally, it’s time to sit back and collect your Social Security payments, right?

Although you might feel like you can simply file for Social Security and ride off into the sunset, the truth is that there’s much more to the process. By planning ahead, you can not only avoid making potentially serious mistakes with your Social Security check or Supplemental Security Income (SSI), but you can also ensure that you’re receiving the maximum benefit amount that you can.

Currently, the maximum Social Security benefit for someone retiring at their full retirement age in 2025 is about $4,018 per month, but this amount can be higher if you delay claiming benefits until age 70, reaching a maximum closer to $5,108 per month. Here are some of the missteps you’ll want to avoid if you’re claiming Social Security in 2025.

Not Understanding FRA

Full retirement age (FRA) is an important concept when it comes to Social Security. Although you can claim your benefits as early as age 62, full retirement age, as the name implies, is when you earn your full Social Security benefit. If you claim your benefits before FRA, they will be permanently reduced for the rest of your life.

Keep in mind that full retirement age is 67 for those born in 1960 or later, so if you’re 66 in 2025, full retirement age is 66 years and 10 months. For example, if you aren’t aware of the difference a few months can make and plan on claiming benefits at age 66 years and 8 months, you’ll technically be filing early. This means you’ll forever be locking in a lower monthly payout, thus reducing your benefits. 

Expecting a Huge COLA

Every year, the Social Security Administration (SSA) evaluates benefits and typically raises them in line with inflation so that beneficiaries don’t experience a loss in purchasing power. This is called a cost-of-living adjustment, or COLA.

Just two years ago, in 2023, when inflation was at its highest levels in 40 years, the COLA was a whopping 8.7%. For 2024, when inflation was on its way down, the COLA dropped to 3.2%. However, the COLA for 2025 was 2.5%, which means the days of COLAs approaching double digits are done for the foreseeable future. When it comes to how much return you’ll get on your Social Security taxes from year to year, be sure to temper your expectations.

Overlooking Spousal Benefits

When you file for Social Security benefits, you’re entitled to the highest benefit possible based on either your own personal work record or that of your spouse. However, the spousal benefit is limited to 50% of the amount the prime beneficiary is receiving.

In other words, if your spouse receives a Social Security check of $2,000 per month, your maximum spousal benefit is $1,000. If this is more than you would receive based on your own work record, then you can still claim this benefit, even if you have never worked a day in your life. It’s important to check which benefit gives you the biggest paycheck.

Relying Only on Social Security

If you’re planning to retire this year, you won’t really have a lot of time to build up your other savings to supplement your Social Security payout. However, you could make some life changes to prepare for the fact that Social Security alone won’t likely fund your dream retirement.

For example, if you are retiring at the end of the year, you could absolutely max out your retirement plans and at least get a small head start before you draw your first Social Security check. Here are a few key takeaways for filing for 2025:

• The maximum retirement contribution for those under 50 to a 401(k), 403(b), or governmental 457 plan is $23,500
• For those aged 50 and over, an additional $7,500 can be contributed as a catch-up contribution, bringing the total to $31,000

Another way to boost your retirement earnings instead of relying solely on Social Security is to consider a part-time job or side gig after you formally retire. This doesn’t have to be something burdensome. In fact, many seniors enjoy working a few hours a week doing something they love, all the while earning additional money for retirement.

If neither of those options is feasible for you, it’s important to acknowledge that you’ll likely have to downsize or otherwise trim expenses in retirement if you’re planning to rely on Social Security. 

Final Take To GO: Claiming Social Security in 2025

The bottom line is that Social Security is always a hot-button issue, but in times of economic uncertainty, it becomes increasingly difficult to navigate. Keep in mind that while the current White House administration has claimed not to be making any changes, there could be some differences down the line. 

As of now, Social Security recipients have a 2.5% COLA increase to their benefits, and for those under full retirement age, the earnings limit is $23,400. For those reaching full retirement age in 2025, the earnings limit will be $62,160, with the maximum amount of earnings subject to Social Security tax being $176,100. 

Caitlyn Moorhead contributed to the reporting for this article.

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