Things Every Retiree Should Know About Social Security
retirement planning

Things Every Retiree Should Know About Social Security

Written by admin

Things every retiree should know about social security is a must-read. Many of us are mislead about social security income before we retire, then we are disappointed once we do retire when our fixed-income is not enough for us to live on.

Table of Contents

Affiliate Disclosure 

Amazon + Wealthy Affiliate + Friends

Disclosure

 This post may contain affiliate links, meaning we may earn a small commission at no extra cost to you if you choose to make a purchase.

Affiliate Disclosure: Some of the links on this website may be affiliate links. This means that if you click a link and make a purchase, I may earn a small commission at no extra cost to you. These commissions help support 65 Plus Life,  Boomer Biz HQ, and Dawg Solutions. so I can continue creating free resources for older adults.

Amazon Disclosure: As an Amazon Associate, I earn from qualifying purchases. Any Amazon links used throughout this website may earn a commission when you purchase through them.

Wealthy Affiliate Disclosure: I am also a proud affiliate of Wealthy Affiliate. If you choose to join their platform through my referral link, I may earn a commission. I only recommend Wealthy Affiliate because it has personally helped me build websites and create income online, and I believe it can help other older adults learn these skills too.

Thank you for supporting my work — it truly means a lot.

Jeff

What I Learned the Hard Way About Social Security

Like a lot of people, I always assumed I’d start Social Security when the time was right — after I had a solid plan, a little extra savings, and the freedom to choose the best age to claim.

But life doesn’t always work that way.

In my case, I ended up having to live on Social Security much sooner than I expected, and I learned quickly that Social Security isn’t as simple as most people think.

There are rules that can reduce your benefits, timing decisions that can cost you thousands over time, and a lot of small details that retirees don’t learn until they’re already collecting.

And here’s the honest truth:

I wish I had known certain things earlier — because it would have made my retirement years less stressful.

That’s why I’m writing this.

In this article, I’m going to share the most important things every retiree should know about Social Security — the things that can protect your income, help you avoid mistakes, and help you make the best choices for your situation.

Social Security Was Never Designed to Be Your Only Income

One of the biggest lessons I learned — and I learned it fast — is this:

Social Security was never meant to be your full retirement plan.

It was designed to be a foundation… a baseline… a safety net.

But when you have to start living on it sooner than expected, you quickly realize how limited it can feel — especially with today’s prices.

For many retirees, Social Security might cover the basics like:

  • A portion of housing costs
  • Utilities
  • Groceries
  • Basic medical expenses

But it often doesn’t leave much room for the things that make retirement enjoyable, like:

  • Travel
  • Helping family
  • Dining out
  • Home repairs
  • Unexpected emergencies

And that’s where the stress can creep in.

Because once you start collecting, you may find yourself thinking:

“This is it? This is what I’m supposed to live on?”

The truth is, Social Security can be a huge help — and for many people it’s the difference between getting by and not getting by.

But if it becomes your only income, it can feel like retirement turns into survival mode.

That’s why understanding how Social Security works — and how to protect every dollar you’re entitled to — matters so much.

The Age You Claim Matters More Than Most People Realize

If there’s one Social Security lesson I wish every retiree truly understood, it’s this:

The age you claim Social Security can change your monthly income for the rest of your life.

A lot of people think Social Security is just Social Security — that you apply, you start receiving checks, and that’s that.

But it doesn’t work that way.

Your benefit amount depends heavily on when you start collecting, and the difference can be hundreds of dollars per month — and tens of thousands of dollars over time.

Here’s the simple version:

If you claim early…

You can start as early as age 62, but your monthly benefit will be permanently reduced.

If you claim at your full retirement age…

This is the age Social Security considers “normal” for your birth year (usually somewhere between 66 and 67).

If you delay…

If you wait past full retirement age, your benefit increases every year you delay — up until age 70.

And the key word here is permanently.

Once you claim, you’re basically locking in that benefit amount.

So if you claim too early because you feel pressured or you don’t know the rules, you could end up leaving real money on the table — every single month for the rest of your life.

Why This Matters So Much for Retirees

The reason this is such a big deal is simple:

Most retirees don’t just collect Social Security for a year or two.

They may collect it for 15, 20, or even 30 years.

So even a small difference in the monthly amount adds up to a major difference over time.

And if you’re married, it can matter even more — because your claiming age can affect your spouse’s benefits too.

Your Benefit Is Based on Your Highest 35 Years — and That Can Hurt You

Here’s something I didn’t fully understand until Social Security became real for me:

Your Social Security benefit is based on your highest 35 years of earnings.

That sounds simple — but the part that surprises a lot of retirees is what happens if you don’t have 35 strong earning years.

Because Social Security doesn’t just average what you made.

It averages 35 years — even if some of those years are low… or even zero.

And that can reduce your benefit more than most people realize.

Why This Can Be a Problem

This can hurt retirees who:

  • Took time off to raise children
  • Worked part-time for several years
  • Had years of unemployment
  • Retired early and stopped working before 35 years
  • Had a business that didn’t show much taxable income
  • Worked under the table (no Social Security taxes paid)

If you only have, say, 30 years of earnings, Social Security doesn’t ignore the missing 5 years.

They count them as zero, and that pulls your average down.

What This Means in Real Life

This is one reason two people who “worked about the same number of years” can end up with very different Social Security checks.

It also means that sometimes working just a few more years — even at a modest income — can increase your Social Security benefit more than you’d expect.

Because those new earning years can replace low-income years or zero years in your 35-year calculation.

Understanding Social Security

The biggest point here is this:

Social Security rewards long-term, consistent earnings.

So if you’re still working (or able to work), it’s worth checking whether a few extra years could boost your benefit — especially if you have low or zero years in your record.

COLA Helps — But It Doesn’t Always Keep Up With Real Life

Most retirees have heard the term COLA, which stands for Cost-of-Living Adjustment.

And yes — COLA helps.

It’s the yearly increase Social Security gives many recipients to help benefits keep up with inflation.

But here’s what I learned from real life experience:

Even when Social Security goes up, it doesn’t always feel like you’re getting ahead.

Sometimes it barely feels like you’re staying even.

Why COLA Doesn’t Always Feel Like Enough

The reason is simple:

Retirees don’t spend money the same way working people do.

Many retirees spend more on things like:

  • Medical costs
  • Prescription drugs
  • Insurance
  • Groceries
  • Utilities
  • Property taxes
  • Home repairs

And those costs often rise faster than the average inflation numbers used to calculate COLA.

So while Social Security may go up by a certain percentage, your real-world expenses may go up even more.

The Reality Most Retirees Face

A lot of retirees experience something like this:

  • Your Social Security check increases
  • But Medicare premiums increase too
  • Food prices jump
  • Insurance goes up
  • And suddenly the “raise” is gone

That can make retirement budgeting feel like a moving target.

Understanding COLA

COLA is important, and it absolutely helps.

But it’s still wise to plan for the reality that:

Social Security increases may not fully cover the rising costs retirees face year after year.

That’s why it’s so important to understand the rules, avoid mistakes, and protect every dollar you can.

Medicare Premiums Can Reduce Your Social Security Check

Here’s another thing many retirees don’t realize until they see it happen:

The Social Security amount you’re “approved for” may not be the amount that actually hits your bank account.

Why?

Because for most retirees, Medicare premiums are deducted directly from their Social Security check.

So even if your Social Security benefit increases, your monthly deposit can still feel smaller than expected.

What Gets Deducted?

The most common deduction is:

  • Medicare Part B premium

And for some retirees, there may also be deductions for:

  • Medicare Part D (prescription coverage)
  • Medicare Advantage plans (if the plan premium is taken from Social Security)

Why This Matters

This matters because a lot of retirees budget based on their “benefit amount” — and then get surprised when the deposit is less.

It can also create a frustrating situation where:

  • Social Security goes up
  • But Medicare premiums go up too
  • And your net check barely changes

Or worse…

Your net check goes down.

Understanding Social Security

The key thing every retiree should understand is:

Your Social Security check is not always your “spendable” Social Security income.

So when you plan your monthly budget, make sure you’re looking at your actual deposit amount after Medicare deductions.

Social Security Can Also Help If You Become Disabled Younger Than Expected

Most people think of Social Security as something you collect when you retire.

But here’s something many readers may not know:

Social Security can also provide income if you become disabled at a younger age and can no longer work.

This is especially important because disability can happen suddenly — from an accident, illness, or a serious medical condition — and it can completely change someone’s financial future.

If you’re unable to work for a long period of time, Social Security Disability Insurance (often called SSDI) may provide monthly income, even if you’re years away from retirement age.

The Important Thing to Know

SSDI is not a “handout.”

It’s an insurance program you qualify for because you worked and paid into Social Security through payroll taxes.

In other words:

You earned it.

Why This Matters for Your Future Retirement

Another key point many people don’t realize is this:

If you receive SSDI, it can protect you from having years of “zero income” hurt your Social Security retirement benefit later.

So even though disability may disrupt your working years, Social Security can still provide support — now and in the future.

SSDI Is Harder to Qualify For Than Most People Expect

One of the most important things to understand about Social Security Disability (SSDI) is this:

It’s not easy to qualify for.

A lot of people assume that if a doctor says you can’t work, you automatically qualify for disability.

But Social Security uses a very strict definition of disability — and many people are denied the first time they apply.

Social Security’s Definition Is Very Strict

To qualify for SSDI, Social Security generally has to believe:

  • Your condition is serious enough that you cannot work (not just your old job, but most jobs)
  • The condition is expected to last at least 12 months or result in death
  • You have enough work history and credits (in most cases)

This is why someone can be truly struggling — physically or mentally — and still get denied.

Many People Get Denied the First Time

This surprises people, but it’s common.

A denial doesn’t always mean you aren’t disabled.

It often means:

  • Paperwork was incomplete
  • Medical records weren’t strong enough
  • Social Security needs more documentation
  • The case wasn’t explained clearly

The Takeaway

If you or someone you love is applying for SSDI, the most important thing to know is:

Don’t give up if you’re denied.

Many people qualify only after an appeal — and the process can take time.

It’s also smart to get help if needed, especially if the paperwork or medical documentation is overwhelming.

Technology Today Makes Working With Disabilities Possible for Many People

best laptops for working with arthritis
Jeff Shares The Best Laptops For Working From Home With Arthritis

Here’s something I think is important to say — especially for readers who may be facing disability at a younger age:

Technology has changed what “being able to work” can look like today.

Years ago, many disabilities automatically meant someone couldn’t work at all.

But today, with the tools we have now, some people are able to work from home, earn income, and stay independent — even with serious physical limitations.

The World of Work Has Changed

Today, many jobs can be done with:

  • A laptop
  • Voice-to-text software
  • Remote work platforms
  • Flexible schedules
  • Assistive devices
  • Online training and learning

For some people, that can mean the difference between:

  • Feeling stuck
  • And building a new path forward

Something to Consisder

Even if someone can’t do the job they used to do, they may still be able to do something — especially remotely.

And that matters because:

  • Earning even part-time income can reduce financial pressure
  • It can help protect savings
  • And it can give someone more choices (instead of being forced into survival mode)

 

Working While on Social Security (or SSDI) Has Rules — Know Them

Here’s something every retiree — and especially anyone receiving disability benefits — needs to understand:

You can often work while receiving Social Security… but there are rules.

And if you don’t know those rules, it’s possible to accidentally trigger benefit reductions, overpayments, or problems you never saw coming.

If You’re Retired and Collecting Social Security

If you start Social Security before your full retirement age and continue working, Social Security may reduce your benefits depending on how much you earn.

This catches a lot of people off guard, because they think:

“I’m retired… but I’m still working a little… what’s the big deal?”

The truth is, Social Security has income limits for people who claim early.

Once you reach full retirement age, those limits generally no longer apply.

If You’re on SSDI (Disability)

SSDI has its own set of rules.

Social Security looks closely at whether your work activity suggests you are able to work at a level they consider “substantial.”

That doesn’t mean you can’t work at all.

But it does mean you need to understand the guidelines — because earning too much can put your disability status at risk.

Think About This

The main point is this:

Working can be a great thing — but don’t guess.

Before you start earning income, it’s smart to understand the rules for your situation so you don’t accidentally lose benefits you depend on.

Spousal and Survivor Benefits

The Most Overlooked Social Security Money

If you’re married — or if you were married in the past — this section is extremely important.

Because one of the biggest Social Security surprises for many people is this:

There may be money available through spousal or survivor benefits that you didn’t even realize you qualified for.

And sadly, a lot of retirees miss out simply because they never knew to ask.

Spousal Benefits

In many cases, a spouse may be able to receive benefits based on their husband or wife’s work record.

This is especially important for couples where:

  • One spouse earned significantly more than the other
  • One spouse stayed home to raise children
  • One spouse worked part-time for many years

Spousal benefits can sometimes provide a higher monthly payment than what the lower-earning spouse would receive on their own record.

Survivor Benefits

This is the one that really catches many people off guard.

If your spouse passes away, you may be eligible for survivor benefits — and in many cases, that benefit can be as high as the amount your spouse was receiving (or was eligible to receive).

For many widows and widowers, this becomes a critical source of income.

Why This Matters So Much

The reason this is so important is simple:

Social Security decisions don’t just affect one person.

For married couples, the claiming strategy can impact the household’s income for decades — including after one spouse is gone.

Understanding Spouse Survior Benefits

If you’re married, divorced, or widowed, it’s worth taking the time to learn what you qualify for.

Because spousal and survivor benefits are some of the most overlooked — and most valuable — parts of the Social Security system.

Divorced? You Might Still Qualify for Benefits

Here’s something many retirees never find out until much later:

Even if you’re divorced, you may still be able to collect Social Security benefits based on your ex-spouse’s work record.

And this can be a big deal — especially for people who were married for many years and earned less than their spouse.

You Don’t Have to Be on Good Terms

This is important:

Your ex does not have to approve it.

They don’t have to sign anything.

And in most cases, they won’t even be notified.

This benefit is based on the work record they earned — and the marriage history you had.

Who This Can Help

This often helps people who:

  • Were married for a long time
  • Stayed home raising children
  • Worked part-time
  • Earned much less than their spouse
  • Are now single and living on limited income

Consider This

If you’re divorced, don’t assume Social Security is only based on your own work record.

You may have options — and those options could increase your monthly income.

Yes, Social Security Can Be Taxed

This is one of the biggest Social Security surprises for many retirees:

Yes — your Social Security benefits can be taxed.

A lot of people assume Social Security is “tax-free retirement money.”

But depending on your total income, the IRS may tax a portion of your benefits.

Why This Catches Retirees Off Guard

The reason this catches people by surprise is because it often happens when retirees start pulling income from other sources, such as:

  • IRA withdrawals
  • 401(k) withdrawals
  • pensions
  • part-time work
  • investment income
  • rental income

So even if Social Security is your main income, those other sources can push you into a range where taxes apply.

Understanding Social Security Taxes

The most important thing here is:

Social Security isn’t always tax-free.

So if you’re building a retirement plan, it’s smart to factor in the possibility of taxes — especially if you also have retirement accounts or other income.

Mistakes Retirees Make That Cost Them Money

Social Security can be a huge help in retirement — but it’s also a system with rules, deadlines, and decisions that can cost you money if you don’t understand them.

Here are some of the most common mistakes retirees make that can reduce their benefits or create unnecessary stress.

1. Claiming Too Early Without Understanding the Long-Term Cost

Claiming at 62 might feel like the only option — especially if you retire early or lose a job.

But many people don’t realize the monthly reduction is permanent.

That decision can affect your income for decades.

2. Not Understanding How Work Can Affect Benefits

Some retirees keep working part-time and don’t realize that if they claim early, earning too much can temporarily reduce their Social Security checks.

And for SSDI recipients, working without understanding the rules can create even bigger problems.

3. Not Planning for Medicare Deductions

A lot of retirees budget based on their “approved” Social Security amount.

Then Medicare premiums come out… and the deposit is smaller than expected.

4. Missing Out on Spousal, Survivor, or Divorced Benefits

This is one of the biggest money mistakes of all.

Many people assume Social Security is only based on their own work record.

But spousal and survivor benefits can dramatically change retirement income — especially for widows, widowers, and divorced retirees.

5. Forgetting About Taxes

Retirees are often shocked when they learn Social Security can be taxable.

This is especially common when they begin taking withdrawals from retirement accounts.

Jeff Shares

Things Every Retiree Should Know About Social Security
Browse More Step-by-Step Guides & Tutorials

The biggest mistake retirees make is simple:

They assume Social Security is automatic and straightforward.

But the truth is, the more you understand the rules, the more you can protect your income — and reduce the chances of costly surprises.

Don’t Guess — Get the Facts Before You Claim

If there’s one final thing I want to leave you with, it’s this:

Don’t guess when it comes to Social Security.

The decisions you make — when you claim, how you claim, and what benefits you qualify for — can affect your monthly income for the rest of your life.

And once you lock in certain choices, it can be very hard (or impossible) to undo them.

That’s why I strongly encourage every retiree to take the time to learn the rules, understand your options, and make decisions based on facts — not fear, pressure, or misinformation.

Want Help Building a Retirement Income Plan?

If you’d like help putting all of this together into a simple plan you can actually follow, I created a free guide:

Jeffs Retirement Income Blueprint Plan

It’s designed to help you build a clearer retirement income strategy over the next 90 days — so you can feel more confident about your money, your future, and your retirement decisions.

👉 Download Jeffs Retirement Income Blueprint Plan here (FREE)

My Personal Experience

Becoming Disabled Young and Living on SSDI

This part of Social Security is personal for me.

Because I didn’t just learn about retirement benefits — I learned the hard way what it’s like to depend on SSDI (Social Security Disability Insurance) at a much younger age than most people expect.

And I’ll be honest:

Living on SSDI was one of the hardest financial seasons of my life.

Not because SSDI isn’t helpful — it absolutely is.

But because when you’re living on a fixed monthly check, it doesn’t take much for life to feel tight.

The Struggle Was Real

When you’re disabled, it’s not just the income that changes.

Everything changes.

You still have real-life expenses like:

  • housing
  • food
  • utilities
  • transportation
  • medical costs
  • prescriptions
  • basic day-to-day needs

And when your income is limited, you can feel like you’re constantly behind — even when you’re doing everything you can.

For a while, it felt like I was stuck in survival mode.

What Changed Everything for Me

The turning point came when I found a way to start earning supplement income online.

Not overnight.

Not instantly.

But little by little, I started learning what was possible — even with limitations.

And what I discovered was this:

The internet has opened doors that didn’t exist years ago.

For some people, it’s possible to earn income from home, build skills, and create a second stream of money — even if you can’t work a traditional job.

Why I’m Sharing This

I’m sharing this because I know there are readers out there who may be disabled, struggling, and scared about the future.

And I want you to know something:

You’re not alone — and you may have more options than you think.

SSDI can be a lifeline.

But for many people, the real goal is finding a way to create a little extra income — so you’re not forced to live on the bare minimum forever.

Jeff Share His Own Experience

That’s one of the reasons I’m so passionate about helping people understand Social Security and retirement income planning. Whether you’re retired, approaching retirement, or dealing with disability earlier than expected, the goal is the same: build a plan so you’re not stuck in survival mode.

Jeffs Free Retirement Income Blueprint

If you’d like help getting started, I put together a free guide that walks you through a simple 90-day approach to building more financial stability — Jeffs Retirement Income Blueprint Plan. It’s free, and it was created for people who want a clear path forward.

I thank you very much for taking the time to read and learn ” Things Every Retiree Should Know About Social Security”,

Jeff/ Boomer Biz News

Disclosure

 This post may contain affiliate links, meaning we may earn a small commission at no extra cost to you if you choose to make a purchase.

wealthy affiliate free membership
Learn How To Get Started With Wealthy Affiliate Free

 

facebookShare on Facebook
TwitterPost on X
FollowFollow us
PinterestSave

2 thoughts on “Things Every Retiree Should Know About Social Security”

  1. I agree that social security was never designed to be your only income. I claimed Social Security at full retirement. Your information has increased my understanding of social security. COLA does help, but increases in Medicare costs greatly offset it. I work part-time to increase my spendable income, even with additional savings and retirement accounts. You have provided some valuable information. I will save your article to share with others. Thanks so much, Jeff.

    Reply

    1. Thank you for sharing your own experience with Social Security income and Medicare. Sadly everytime we receive an increase for the cost of living Medicare takes much of it before we ever see it.

      Jeff

      Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

error

Enjoy this blog? Please spread the word :)