One Social Security decision can affect your income for the rest of your life.
According to a recent government audit, thousands of Americans may have made the
wrong choice after receiving inaccurate guidance, and the consequences can be
surprisingly large.
For retirees trying to eliminate
some stress living on Social Security, the findings are a reminder that
claiming strategies matter. A mistake made in your early 60s could reduce
monthly benefits for decades, and in many cases, there is no easy way to undo
it. The audit highlights a problem that deserves a closer look.
A government audit uncovered millions in lost benefits
In a March 2026 audit, the Social Security Administration (SSA) Office of the
Inspector General found that approximately 5,367 widows and widowers lost a
combined $113.8 million after receiving incorrect information about when to
claim survivor benefits. The average affected beneficiary lost roughly $21,200
because they filed earlier than they otherwise might have.
For many of those individuals, the financial damage cannot be fully recovered.
Once survivor benefits are claimed at a reduced rate, that lower payment
generally follows the recipient for life. That makes the timing decision
especially important.
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The mistake starts with claiming survivor benefits too early
Widows and widowers can begin collecting survivor benefits as early as age 60.
However, claiming before full retirement age (FRA) permanently reduces the
monthly benefit amount. For many survivors whose FRA is 67, filing at age 60 can
result in a reduction of roughly 29% compared with waiting until FRA.
The reduction may seem manageable at first. But, over a retirement that lasts 20
or 30 years, the difference can become substantial, making it crucial to
carefully evaluate all of your options before filing.
How a $912 monthly gap can happen
Consider a simplified example. Suppose a surviving spouse would be eligible for
a $3,200 monthly survivor benefit at FRA. If that person instead claims survivor
benefits at age 60, the permanent reduction could lower the monthly payment to
about $2,288.
That creates a difference of about $912 every month. Over decades of retirement,
the cumulative impact could potentially amount to hundreds of thousands of
dollars if you live a long life, especially when future cost-of-living
adjustments are applied to the larger benefit amount that was never claimed.
Survivor benefits work differently from retirement benefits
One detail often causes confusion. Retirement benefits can continue growing
beyond FRA through delayed retirement credits. Survivor benefits do not work the
same way. According to the Social Security Administration, survivor benefits
generally stop increasing once the survivor reaches FRA.
That means there is usually no advantage to waiting beyond FRA to claim survivor
benefits. The biggest decision is often whether to claim early or wait until
FRA. Getting that timing right can make a meaningful difference.
A better strategy may exist for some widows and widowers
Many survivors have another option available. If a widow or widower qualifies
for their own retirement benefit based on their work history, they may be able
to claim one benefit first and switch later. In some situations, a person can
begin collecting their own reduced retirement benefit while allowing the larger
survivor benefit to remain untouched until FRA.
This approach can provide income sooner without permanently reducing the higher
survivor benefit. Because the rules can be complex, it is often worth reviewing
different scenarios before filing.
Why an early claiming decision can be difficult to reverse
Many financial decisions can be corrected later. Social Security claiming
choices are not always so forgiving. Once survivor benefits have been claimed at
a reduced level and significant time has passed, opportunities to change course
may be limited or nonexistent.
That reality makes accurate information critical. Even guidance received from
official sources, such as an agent at a Social Security field office, should be
carefully reviewed when large lifetime benefits are at stake.
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Bottom line
The recent audit shows how costly a Social Security claiming mistake can become.
Thousands of widows and widowers received less income than they might have
otherwise received, with average losses exceeding $21,000 and some potentially
giving up far more over a lifetime.
If you’re eligible for survivor benefits, take time to understand how different
claiming ages affect your monthly payment before filing. A careful review today
could help you maximize your senior benefits and ultimately preserve more of the Social Security income
you’ve earned.
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Author Details
Adam Palasciano
With six years of experience covering personal finance, Adam Palasciano specializes in retirement planning. He helps readers make smarter investment decisions as retirement approaches and find ways to make their savings last longer once they get there. He also breaks down complex topics like Social Security benefits and taxes so readers can better understand how to maximize the income they’ll rely on later in life.
