For many older Americans, Social Security is more than just a monthly check. It’s a lifeline. Yet, thousands of boomers are unknowingly missing out on benefits that could significantly improve their financial future. Whether it’s by filing too early, not knowing about spousal options, or simply misunderstanding the system, these overlooked benefits can cost retirees tens of thousands of dollars over time.
If you’re approaching retirement age or already collecting, here’s what you might be missing and how to fix it before it’s too late.
1. Delayed Retirement Credits
Many boomers begin collecting Social Security as early as age 62, but waiting even a few more years can mean a much larger monthly check. For every year you delay collecting beyond your full retirement age (up to age 70), your benefit increases by about 8%. Over a 20-year retirement, this could mean tens of thousands of additional dollars.
The boost from delayed retirement credits is automatic but not retroactive, meaning if you claim early, you miss out for good. If you’re healthy and still working, delaying might be the smartest money move you can make.
2. Spousal Benefits
Even if you never worked or earned significantly less than your spouse, you’re likely eligible for spousal benefits. Spouses can claim up to 50% of their partner’s benefit amount, even if divorced, as long as the marriage lasted at least 10 years and the individual is currently unmarried.
Many retirees don’t realize they’re eligible and instead rely solely on their own benefits. If your personal earnings history is lower than your spouse’s, claiming spousal benefits could be a game-changer for your monthly income.
3. Survivor Benefits
Survivor benefits allow widows and widowers to collect benefits based on their deceased spouse’s earnings. These are often overlooked, especially by those who remarry later in life. In some cases, you may be entitled to a larger monthly benefit by switching to survivor benefits instead of continuing to draw your own.
The Social Security Administration doesn’t always notify you of these options, so it’s up to you to do the research or ask directly.
4. Divorced Spouse Benefits
If you were married for at least 10 years, are currently unmarried, and are age 62 or older, you can claim benefits based on your ex-spouse’s record, even if they’ve remarried. Better yet, doing so doesn’t affect their benefits at all.
This benefit is often overlooked due to assumptions or lingering emotions about the divorce itself. But leaving this money on the table can mean missing out on a significant portion of your retirement income.
5. Child and Dependent Benefits
Some boomers still have dependent children or disabled adult children in their care. If this is the case, those dependents might be eligible for benefits based on your work record. Additionally, if you’re raising a grandchild legally, they might qualify, too.
Most people assume Social Security is just about retirement, but the program includes support for families with dependents and not knowing this could mean losing money that’s rightfully yours.
6. Tax Optimization Opportunities
Many retirees don’t realize that Social Security benefits can be taxable depending on their total income. But with the right tax planning, you can reduce or even eliminate those taxes. By drawing strategically from IRAs, Roth accounts, or other investments, you may be able to lower your provisional income and keep more of your Social Security check.
This kind of optimization isn’t offered directly by the SSA, so consulting a financial advisor who understands retirement tax strategies can pay off big time.
7. Do-Over Option (Withdrawal and Refiling)
If you claimed Social Security early and regret it, you actually have one chance to undo it. The SSA allows you to withdraw your application within 12 months of starting benefits, pay back what you’ve received, and reapply later at a higher rate.
This is a powerful tool for those who claimed too soon but then returned to work or had a change in their financial situation. Unfortunately, very few people know this option even exists, and once that 12-month window closes, it’s gone for good.
Final Thoughts
Social Security is a complex system, and the decisions you make around it can affect your financial well-being for the rest of your life. Too often, boomers leave money on the table simply because they don’t know what they’re entitled to. But a little research or a conversation with a financial expert can unlock benefits that might make a huge difference in your retirement years.
Have you double-checked all your Social Security options, or are you quietly missing out, too?
Read More:
Are You At Risk Of Losing Your Social Security? Here’s What You Should Know
5 Things Retirees Are Doing Wrong with Their Social Security (That’s Keeping Them in Poverty)
Riley is an Arizona native with over nine years of writing experience. From personal finance to travel to digital marketing to pop culture, she’s written about everything under the sun. When she’s not writing, she’s spending her time outside, reading, or cuddling with her two corgis.