What are the biggest mistakes people make with Social Security?

The biggest Social Security mistakes involve claiming too early, which permanently reduces monthly benefits; not understanding spousal/survivor benefits, leaving money on the table; ignoring life expectancy and inflation, risking outliving savings; and miscalculating Full Retirement Age (FRA) or how benefits are taxed, impacting overall retirement income. Many people also fail to see Social Security as just one piece of retirement income and don't coordinate it well with other assets like 401(k)s.

What is one of the biggest mistakes people make regarding Social Security?

One of the biggest mistakes people make with Social Security is claiming benefits too early (at age 62) without understanding the permanent reduction, which significantly lowers their monthly income for life, instead of waiting until their Full Retirement Age (FRA) or even age 70, where benefits grow substantially. Many also fail to consider how their decision impacts spousal or survivor benefits, missing out on thousands of dollars in potential lifetime income. 

What is the number one regret of retirees?

The #1 regret of retirees often centers on not saving enough, leading to financial insecurity, but closely followed by not planning adequately for the lifestyle and time use, resulting in missed opportunities like travel or spending time with family, and regretting working too hard or leaving the workforce too soon. Many wish they'd worried less and enjoyed life more, while also regretting issues like underestimating healthcare costs and failing to plan for taxes or a fulfilling post-work identity. 

What does Suze Orman say about when to take Social Security?

Suze Orman strongly advises delaying Social Security until age 70 to maximize your monthly benefit, explaining that waiting provides a significantly higher, inflation-adjusted payout for the rest of your life, making it the best financial move if you're in good health and can cover expenses by tapping other savings or working longer. She emphasizes that waiting until 70 gives you over 75% more than claiming at 62 and helps secure your finances for a longer retirement, with the main exception being if you have serious health issues or a lower-earning spouse needs to claim sooner. 

How much do you have to make to get $3,000 a month in Social Security?

To get around $3,000 a month in Social Security, you generally need high lifetime earnings, often requiring over $100,000 annually for your 35 highest-earning, inflation-adjusted years, and claiming benefits at your full retirement age (FRA) or waiting until age 70 for the maximum, though some high earners claim earlier for slightly less. The Social Security Administration (SSA) calculates benefits based on your Average Indexed Monthly Earnings (AIME) from your top 35 years, so consistently earning above the wage base cap helps significantly. 

3 Mistakes People Make Before Taking Their Social Security Benefits

What is the highest monthly Social Security you can get?

The maximum monthly Social Security benefit varies by retirement age in 2025, reaching $5,108 at age 70, $4,018 at full retirement age (FRA), and $2,831 if claiming at 62, requiring a history of maximum taxable earnings for 35 years. For 2026, these amounts increase, with the maximum benefit for someone retiring at age 70 being around $5,251 after a 2.8% COLA. 

What does Dave Ramsey say about taking Social Security?

Dave Ramsey cautions on Social Security dependence

But Ramsey said, "These 35% of folks are going to learn the hard way that what they don't know can and definitely will hurt them when they retire." Ramsey insists that relying too heavily on Social Security for retirement income is a dangerous move.

What is the smartest age to collect Social Security?

The best age to take Social Security depends on your situation, but for most people, delaying until age 70 maximizes benefits, as your monthly payment grows significantly until then. Claiming as early as 62 reduces payments, while waiting past your Full Retirement Age (FRA) up to 70 increases them by about 8% per year. While age 70 is often optimal for lifetime wealth, claiming earlier (like at FRA) might suit those needing income sooner or with health issues. 

What is the $1000 a month rule for retirement?

The $1,000 a month retirement rule is a guideline suggesting you need $240,000 saved for every $1,000 in monthly income you want from your investments in retirement, based on a 5% annual withdrawal rate (which yields $12,000/year or $1,000/month). Popularized by financial planner Wes Moss, it helps estimate savings goals but doesn't account for inflation, healthcare, or other income like Social Security, making it a useful starting point but needing adjustment for real-life planning. 

What is the happiest age to retire?

While there's no single "best" age for everyone, studies suggest around age 63 is often cited as ideal for happiness, balancing financial readiness (accessing IRAs, slightly higher Social Security) with vitality for travel and hobbies, though many retire earlier due to health or job loss, and happiness ultimately depends on financial security, having purpose, and managing the transition from work. 

What do people regret most on their death bed?

1) “I wish I'd had the courage to live a life true to myself, not the life others expected of me.” 2) “I wish I hadn't worked so hard.” 3) “I wish I'd had the courage to express my feelings.” 4) “I wish I had stayed in touch with my friends.” 5) “I wish I had let myself be happier” (p. v).

What are the 3 R's of retirement?

The "3 Rs of Retirement" aren't one single set but often refer to Resiliency, Resourcefulness, & Renaissance Spirit (adapting to change with optimism), or Rediscover, Relearn, & Relive (embracing new hobbies/learning) for personal fulfillment, with financial concepts like Recognition, Reduction, & Residual Risk** also emerging for money management. Essentially, it's about mindset shifts for a positive transition, focusing on adaptability, new passions, and managing financial risks. 

What does Warren Buffett say about Social Security?

Buffett suggests a slight boost in Social Security payroll taxes, saying even a modest hike would generate additional funds over time. In addition, a small tax hike would help secure the program's financial stability without unfairly burdening workers or employers.

How many people have $500,000 in their retirement account?

While averages can be misleading, roughly 7-9% of Americans have $500,000 or more in retirement savings, though this varies significantly by age, with older groups having higher balances but still often falling short of ideal figures, and medians (the middle value) being much lower than averages. For example, in late 2025, about 7.2% of Americans had $500K+, while in 2022, 9% of households had over $500K in retirement accounts, notes USAFacts. 

What are the 13 retirement blunders to avoid?

The 13 Blunders

• Buying Annuities.
• Being Too Conservative in Investing.
• Ignoring Foreign Stocks.
• Paying Excessive Fees.
• Trying to Time the Market.
• Relying on “Common Knowledge”

How many people have $1,000,000 in retirement savings?

A small percentage of Americans have $1 million in retirement savings, with estimates varying slightly but generally falling between 2.5% to 4.7% of all households, according to Federal Reserve data analyzed by various sources, with older age groups (like 55-64) having higher rates (around 9.2%). While specific total numbers fluctuate with market conditions, this highlights that a seven-figure nest egg remains uncommon, with many households having little or no dedicated retirement savings. 

What does Suze Orman say about taking Social Security at 62?

Suze Orman strongly advises against taking Social Security at 62, calling it a major financial mistake for most healthy people, as it permanently reduces your monthly benefit by up to 30%. She advocates delaying until Full Retirement Age (FRA) or ideally age 70 for a significantly higher, guaranteed lifetime income, explaining that longer life expectancies mean people need more money later in retirement, and waiting provides crucial financial stability against rising costs. The only exception she makes is for individuals with serious health issues or shorter life expectancies, where claiming early might maximize total lifetime benefits, notes Money Talks News and 24/7 Wall St.. 

How many years does the average person collect Social Security?

The average person collects Social Security for about 15-20 years, with averages varying by gender and claiming age; men claiming at 65 might get around 13 years, but with increased life expectancy, many live to 83+, potentially collecting 20+ years, while women often live longer, getting benefits for even longer, but it depends heavily on individual life span and when they start taking benefits (age 62 vs. 70). 

What did Ronald Reagan say about Social Security?

In this ten-minute recording, Reagan "criticized Social Security for supplanting private savings and warned that subsidized medicine would curtail Americans' freedom" and that "pretty soon your son won't decide when he's in school, where he will go or what he will do for a living.

Should I take a $44,000 lump sum or keep a $423 monthly pension?

Think about how long you might live, your financial goals, and how inflation could affect your money. Talking to a financial advisor can help make this decision easier. Taxes are different for lump sums and monthly payments. Lump sums could mean higher taxes at once, while monthly payments spread out the tax burden.

Do wealthy people take Social Security?

The short answer is yes. Under the current law, an individual's wealth or current income level has no impact on their eligibility to receive a Social Security retirement benefit. In other words, even if you have $10 billion in assets, you could qualify for Social Security as long as you meet the requirements.

What are the biggest retirement mistakes?

• Top Ten Financial Mistakes After Retirement.
• 1) Not Changing Lifestyle After Retirement.
• 2) Failing to Move to More Conservative Investments.
• 3) Applying for Social Security Too Early.
• 4) Spending Too Much Money Too Soon.
• 5) Failure To Be Aware Of Frauds and Scams.
• 6) Cashing Out Pension Too Soon.

How long will $1 million in super last?

$1 million is enough for a comfortable retirement if you retire at age 65. This will provide a single person with an income of $60,000 p.a. and a couple with $77,000 p.a., including Age Pension for around 30 years, based on an investment return of 6% p.a. and 3.0% p.a. inflation.

Is $10,000 a month a good retirement income?

A good monthly retirement income typically replaces 70 to 80 percent of your pre retirement income. For most retirees, this ranges from $4,000 to $10,000 per month, depending on lifestyle and location.