3 Social Security Rules Too Many Retirees Don’t Know About

If there’s one program that’s truly vital to retired Americans, it’s Social Security. Those monthly benefits can be a lifeline, particularly for those without much savings.

Social Security is a complex program that’s loaded with rules, and it’s important to understand its ins and outs. Here are three Social Security rules some retirees may not know about — but should.

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1. There’s an earnings test for some recipients who work

It’s possible to earn money from a job while collecting Social Security. Once you reach full retirement age, which is 67 if you were born in 1960 or later, you can earn any amount of money from a job without a negative effect on your monthly checks.

However, if you work and receive benefits prior to full retirement age, you’ll be subject to an earnings test. Exceeding its limits generally means having benefits withheld temporarily.

In 2026, you’ll have $1 in Social Security withheld per $2 of earnings above $24,480 if you won’t reach full retirement age by the end of the year. That limit is likely to rise over time, and it’s an important number to keep tabs on if you’re earning a paycheck.

2. You can undo your claim if you file too early

Claiming Social Security ahead of full retirement age results in reduced monthly checks. But it’s important to realize that you’re not necessarily stuck with smaller checks due to filing early.

All Social Security claimants are allowed a do-over in their lifetime. If you file too early, you can withdraw your application for benefits within a year to get a second chance at filing at a later age.

The catch, though, is that to exercise your do-over, you need to repay the Social Security Administration all of the benefits you received. If you can pull that off, you can undo your claim, file again a few years down the line, and lock in much larger benefits.

3. You can’t get delayed retirement credits for spousal benefits

When you’re claiming Social Security on your own earnings record, you can score an 8% boost to your monthly benefits for each year you delay your filing past full retirement age, up until you turn 70. But that option doesn’t exist for spousal benefits.

Spousal benefits max out at 50% of the amount your spouse is entitled to at full retirement age. If you delay a spousal benefit claim past your full retirement age, you won’t get any more money, which means waiting doesn’t make financial sense. If anything, it could cost you.

Reading up on Social Security’s many rules may not sound like a fun weekend activity. But it’s important to understand how the program works ahead of retirement, so you can make the most of it once you’re eligible to start getting benefits.