3 Reasons Your Social Security Check Isn’t What You Expected

For many retirees, that first Social Security payment is a milestone years in the making. But when that initial check arrives, some beneficiaries are surprised to find that it’s smaller than what they expected.

Here are a few reasons why your Social Security check may look different, and what, if anything, you can do about it.

1. You claimed benefits earlier than full retirement age

One of the biggest factors that determines your monthly benefit is when you decide to claim Social Security. While you can start collecting retirement benefits as early as age 62, doing so prior to full retirement age (FRA) reduces your monthly checks permanently.

FRA depends on the year you were born. For anyone born in 1960 or later, it’s age 67. You can also delay your claim past FRA for boosted checks until you turn 70, at which point you no longer get credit for waiting.

Some retirees claim Social Security early because they need the income or want the flexibility to leave the workforce. But if you expected a larger check, claiming before FRA could be the reason your benefit is lower.

If that’s the case, and you’ve just started receiving Social Security, there may be good news. All Social Security recipients get one do-over in their lifetime. If you’re unhappy with the check amount you’re getting, withdraw your benefits application right away and repay your initial benefit check. From there, you should be able to claim Social Security again at a later point in time.

2. Medicare premiums are reducing your payments

It may be that you waited until FRA to sign up for Social Security. But if you’re enrolled in Medicare, you may be seeing smaller checks than expected.

If you’re enrolled in Medicare Part B, your monthly premium is typically deducted directly from your Social Security benefit off the bat. So that could explain why your checks are smaller.

Plus, if you’re a higher earner, you may be subject to a surcharge on your Part B premiums called an IRMAA, or income-related monthly adjustment amount. IRMAAs are tiered, so the higher your income, the higher your surcharge, up to a point.

3. You’re working while collecting benefits

You’re allowed to claim Social Security while holding down a job. And once you reach FRA, you can earn any amount of money from a job without having a negative impact on your benefits.

But if you’re working and receiving Social Security prior to FRA, you’ll be subject to an earnings test. And earning too much money could cause you to have some benefits withheld, leading to a smaller monthly Social Security check.

The 2026 earnings test limit is $24,480 if you will not reach FRA by the end of the year. Beyond that point, $1 in Social Security is withheld per $2 of earnings.

If you will reach FRA by the end of the year, the earnings test limit is much higher at $65,160. And beyond that point, only $1 in Social Security is withheld per $3 of earnings. But it’s important to understand how your earnings could impact your monthly payments.

It’s never a great thing to get less Social Security than expected. If you’re seeing a smaller check than anticipated, it may be due to one of the reasons above. You can’t change the cost of Medicare, but you can potentially undo an early claim or keep your wages under the earnings test limit to lock in larger benefit payments.

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