Three Unexpected Reasons Your Social Security Check Could Quietly Get Smaller

It’s important to try to get an estimate of your monthly Social Security benefits before you retire. That way, you’ll know how much income you can expect each month.

An easy way to estimate your future benefits is to create an account on the Social Security Administration’s website and look at your most recent earnings statement. It should include an estimate of your anticipated benefit at full retirement age (FRA). 

But the number you see on screen may not be the benefit you end up getting from Social Security. Here are a few reasons your monthly checks could end up being smaller than you would expect. 

1. You file for Social Security early

At FRA, which is 67 if you were born in 1960 or later, you’re eligible for your monthly Social Security benefits without a reduction. But not everyone claims Social Security at FRA.

You’re allowed to file for benefits once you turn 62. You may not realize it, but claiming Social Security before your FRA reduces your benefits on a permanent basis. This is true even if you only file a month or two early. 

2. You work and exceed the earnings test limit

If you file for Social Security before reaching your FRA, you won’t just lock in a reduced monthly benefit. You’ll also be subject to an earnings test.

The earnings test applies to people who work while receiving Social Security before hitting FRA. If you earn too much income from a job, you could have benefits withheld on a temporary basis. You’ll eventually get the money back, but you’ll have to deal with a smaller monthly Social Security check in the interim.

The earnings test limits change every year. In 2026, you lose $1 per $2 you earn above $24,480 if you won’t reach FRA all year, and $1 for every $3 you earn above $65,160 if you will reach FRA by the end of 2026 but haven’t done so yet.

Once you reach FRA, you’ll get credit for your withheld benefits. At that point, your monthly checks should increase. But you may have to deal with reduced benefits for a good number of years before that happens.

3. You sign up for Medicare

If you don’t have employer health insurance, turning 65 is a huge milestone, since it’s when you can enroll in Medicare. But you should know that there’s a cost to Medicare enrollment. 

Each month, you’ll have to pay a premium for Part B, which covers outpatient care. This is different from Part A, which covers hospital care and is typically free for enrollees.

If you’re collecting Social Security at the time of your Medicare enrollment, your Part B premiums will be taken out of your monthly benefits automatically. That means that your checks could shrink. 

Furthermore, some people have to pay extra for Part B due to having a higher income. If you’re subject to a surcharge, your Social Security checks could shrink even more.

It’s important to understand the different reasons you might get smaller Social Security benefits than expected so you can plan for them. Filing a bit later, for example, could help you avoid the big reduction that comes with claiming Social Security at 62. And while you may not be able to delay your Medicare enrollment, knowing how it will impact your monthly benefits could help you avoid a financial surprise.