Social Security is the bedrock of retirement income for nearly ten million Americans, with nine out of ten retirees receiving monthly benefits and more than forty percent depending on these benefits as their sole source of income. In 2025, the average monthly benefit is projected to be just under $2,000, though recipients could receive up to $5,108 per month under optimal circumstances. However, before rushing to claim these crucial benefits, there’s one critical step that could make the difference between financial security and leaving money on the table for the rest of your retirement.
The one essential step: Review and verify your Social Security earnings record
The one most crucial thing that all potential retirees need to do prior to even applying for Social Security benefits in 2025 is review their Social Security earnings record carefully and make sure it is correct. This relatively simple task may save you literally thousands of dollars during your lifetime and ensure that you receive every last cent you’ve earned over the years.
Your Social Security benefit is figured based on your top 35 years of earnings, and even small mistakes in your earnings record can cost you. A mistake in your earnings history can decrease your monthly benefit by $100 or more, the equivalent of losing nearly $30,000 in benefit during a typical period of retirement.
Why earnings record errors are more prevalent than you realize
Alas, Social Security earnings record mismatches are more common than most are aware. In tax year 2012 alone, the SSA recorded $71 billion in wages that could not be matched to individual earnings records. While the SSA does have processes available for correcting a number of these errors, almost half of all mismatches are not corrected, so about $35 billion in wages was never posted to workers’ Social Security record.
These mistakes are typically the result of errors in employers’ reporting of wages, recording the incorrect name or Social Security number, or people legally changing their names through marriage or divorce and failing to notify Social Security. Clerical errors as minor as these, or identity theft, can result in years of missing or inaccurate earnings history.
How to check your earnings record
It is easy to review your Social Security earnings record and do it online. Go to www.ssa.gov/myaccount and establish your personal Social Security account if you have not done so. Upon logging in, you can view your Social Security statement, which shows your complete history of earnings and estimated benefits.
If you are 60 or older and do not have an online account, the SSA will send you your statement about three months before your birthday. But by having an online account, you can view your record at any time and identify mistakes sooner.
What to look for when going over your statement
When reviewing your Social Security statement, check the earnings reported for each year against your own tax returns, W-2s, or paycheck stubs. Take special notice in the years when earnings seem significantly lower or report zero income, because these errors can have a major effect on your benefit computation. Keep in mind that Social Security uses your top 35 years of earnings, so any year that has missing or erroneous earnings may be dragging your average down.
- The time-sensitive nature of corrections: Time is of the essence when correcting Social Security earnings record mistakes. You have 3 years, 3 months, and 15 days from the end of error year to fix errors. This is a deadline that you should review your Social Security statement each year, and not wait until your retirement.
- Steps to correct errors: If you see errors on your earnings record, contact the Social Security Administration promptly. Call them at 800-772-1213 or stop by the Social Security office in your area. Bring W-2s, tax returns, or pay stubs to present as documentation of your request for correction. Some are filled out over the phone, but others will need a special face-to-face appointment.
Beyond error checking: Other benefits of early review
Other than error checking, reading your Social Security statement years in advance of your retirement is beneficial. The SSA estimates are based on your working and earning your current income level until retirement and then retiring at your full retirement age. For most individuals, these predictions are not in line with their retirement strategy, so the estimates are useless for planning purposes.
By understanding how your benefits are calculated and reviewing various claiming scenarios, you can make more informed decisions about when to claim benefits. Readers can also go through this article to know more on COLA Calculations, 2026 COLA Calculator – This is how much your Social Security checks will increase based on how much you collect with the inflation adjustment…The difference between claiming at age 62 versus waiting until age 70 can be substantial, with delayed retirement credits increasing your benefits by approximately 8% per year after your full retirement age. Also read on, A Social Security expert explains the trick to withdrawing benefits before reaching full retirement age (FRA) at 62: “No one is talking about changing…
