Sun Mar 23 2025, by Tyler Gardner

3 Social Security Mistakes Costing Wealthy Retirees Hundreds of Thousands

Here are three Social Security mistakes that are costing wealthy retirees hundreds of thousands of dollars. I'm Tyler, a former financial advisor and portfolio manager, and I make financial content for free to help you navigate your retirement decisions.

1. Ignoring Taxes

First, ignoring taxes. Those monthly benefits you see projected on ssa.gov? Those are pre-tax, my friend. I know, bummer. If your combined income—which includes IRA withdrawals, dividends, and rental income—exceeds $44,000 for married filing jointly in 2025, know that up to 85% of your Social Security benefits will be taxable.

2. Not Having the Right Plan

Second, not having the right plan that works for you. Forget about what I say, and honestly, forget about what some financial advisor says. They’re not you. Claiming early means a 30% permanent reduction in benefits, while claiming late might require drawing from taxable accounts or dying before you even get to spend the money. Seriously.

3. Viewing Social Security as a Portion of Fixed Income

Third, not thinking about Social Security as a portion of your fixed income. Unlike your other investments that are exposed to market volatility, your benefit is your benefit for life. It is one of the few guaranteed inflation-adjusted income streams you'll have. It can serve as a key tool to help you sell other investments during a market downturn.

Conclusion

If any of this is helpful, sign up for my free newsletter by clicking the link in my bio. Every Sunday morning, I'll send you over some more thoughts like this to help you in your financial journey.

Source