Navigating Social Security benefits is a critical task for Americans approaching retirement, yet many fall victim to common pitfalls that can significantly reduce their lifetime income. Financial advisors reveal eight costly mistakes and strategies to avoid them.

1. The Early Claiming Trap

While you can claim Social Security at 62, doing so permanently reduces your monthly benefits by 25-30% compared to waiting until full retirement age (typically 67). "This reduction is permanent and compounds over decades," warns Christopher Straup, a certified financial planner. He recommends evaluating your health status and financial needs before deciding when to claim.

2. Underestimating Processing Time

Applications can take up to 12 weeks to process. Patrick Ray, VP of Wealth Enhancement Group, advises: "File at least three months before your planned retirement date. If targeting a June retirement, complete paperwork by March to avoid income gaps."

3. Overlooking Spousal Benefits

Nearly 40% of couples fail to maximize spousal benefits. "Even non-working spouses can claim up to 50% of their partner's benefit," explains Straup. This strategy proves particularly valuable for couples with significant income disparities, potentially adding thousands annually.

4. The Tax Blind Spot

Contrary to popular belief, Social Security benefits become taxable when provisional income exceeds $25,000 (single) or $32,000 (married). Ray cautions: "Up to 85% of benefits may be taxed at higher incomes. Consider voluntary withholding to avoid tax shocks."

5. Poor Withdrawal Coordination

Treating Social Security as "bonus money" without coordinating with other retirement accounts often backfires. "Claiming benefits while taking 401(k) withdrawals can push you into higher tax brackets and accelerate savings depletion," Ray notes.

6. Flying Without a Financial Plan

A startling 74% of Americans over 50 lack written retirement plans. Straup emphasizes: "Retirement decisions require mathematical modeling—accounting for longevity, inflation, and market returns—not gut feelings."

7. Overestimating Benefit Adequacy

With average monthly benefits around $1,800, Social Security typically covers just 40% of pre-retirement income for middle-class households. Ray recommends "income stress tests" comparing benefits against projected expenses and supplementing with retirement accounts.

8. Ignoring Longevity Risk

With modern medicine extending lifespans, retirement funds may need to last 30+ years. "Family history of shorter lifespans shouldn't dictate planning—prepare for the possibility of living to 100," Ray advises.