3 Big Social Security Mistakes to Avoid in 2025

If you're turning 62 in 2025, it means this is the year you're first eligible for Social Security. And that's a huge milestone.

It's natural to think about signing up for benefits once you're able to actually get your money. But it's important to think things through -- and avoid these mistakes.

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1. Claiming benefits early without getting an estimate first

If you file for Social Security before reaching full retirement age, your monthly benefits will be reduced on a permanent basis. Full retirement age is 67 for anyone born in 1960 or later.

It's not automatically a bad idea to sign up for benefits early. But what is a not-so-great idea is to file early before getting an estimate of your monthly benefits and understanding what reduction you'll face.

Let's say you're looking at a $2,000 monthly Social Security benefit at a full retirement age of 67. If you're looking to sign up at 62, it means accepting $600 less per month -- for life.

Before you make that call, be sure to know what Social Security will pay you. You can find out that information by creating an account on the Social Security Administration's website and accessing your most recent earnings statement.

2. Filing for benefits before coordinating with your spouse

You may looking to claim Social Security in 2025 for whatever reason -- you're newly 62, you're retiring from your job, or you've reached full retirement age. No matter the circumstances, it's important to talk to your spouse before you sign up for benefits.

If your spouse is entitled to Social Security too, you should coordinate a filing strategy together. And if they're not eligible for benefits, you should discuss how your filing decision might impact any spousal or survivor benefits they're entitled to.

3. Signing up for Social Security early because you're afraid the program is going bankrupt

You may be inclined to sign up for Social Security on the early side for a variety of good reasons. But claiming benefits early because you think Social Security is going broke is frankly a pretty bad reason not to wait until your full retirement age.

It's true that Social Security is facing some financial challenges, and that benefit cuts are on the table. But it's not true that Social Security is about to go bankrupt and run out of money.

Because Social Security is funded primarily by payroll taxes, the program can't go bankrupt. It might face a financial shortfall if that revenue stream shrinks, which is expected to happen in the coming years as baby boomers stage a mass retirement. But there's a huge difference between that scenario -- which could result in benefits cuts -- and the program disappearing completely.

If you file for benefits early, all you'll do is reduce them. And then, if Social Security is cut, you'll leave yourself with even less money on an ongoing basis, which could create a world of problems for you in retirement.

You may be looking to claim Social Security in 2025 for one reason or another. But make sure to avoid these mistakes so you don't regret your decision after the fact.

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