1 Social Security Mistake That Could Cost You Thousands in Retirement

By Dana George – Mar 21, 2026 at 4:34AM ESTKey PointsDon’t assume an employer or the Social Security Administration can’t make a mistake.It’s easy to check your earnings record to ensure the SSA has it right.If you find an error, it can be corrected. Imagine this: You have a day coming up with no commitments on the calendar -- an entire day to do anything you want. What are the odds you'd use that time to log into your Social Security account to review your earnings record? If your answer to that question is "zero," there's no reason to feel bad. It's hard to imagine that many people make it a practice to check their earnings record. Image source: Getty Images. Why does it matter? The formula that determines your Social Security retirement and disability benefits is based on how much you've earned through the years. And how much you've earned through the years is based on numbers provided to the Social Security Administration (SSA) by your employer(s). If you look at your my Social Security page, you'll find those figures listed in chronological order. As earnestly as employers try to provide the SSA with the correct numbers, the system is not infallible. Humans make mistakes, and it's easy to type in $32,000 instead of $52,000. While it may not seem like a big deal, every dollar you earn helps maximize the amount you're eligible for if you become disabled or when you retire. It may be just one of the ways you can maximize Social Security payments, but it's important nonetheless. The SSA suggests checking your earnings record each August to ensure the amount reported for the previous year is correct. Here's a rundown of the reasons it makes to sense to double-check your earnings record. You'll ensure your highest-earning years are captured Benefits are based on your highest 35 years of earnings. A missing or incorrect entry may result in lower benefits. You can avoid future hassles Let's say you're applying for disability or retirement benefits, and your personal records show that you earned more than the amount that's been reported to the SSA. The discrepancy can complicate the process and cause unnecessary delays. You may stay out of trouble with the IRS If there's been a mistake at some point in the process, it's possible that the SSA will have a different income listed than you report to the IRS at tax time. The goal is to ensure both figures are the same, so there's never a question about whether you've been honest. You'll have a better sense of the right time to retire Planning for retirement involves all kinds of calculations, from how much you should plan to pay in taxes to whether you've saved enough for out-of-pocket healthcare expenses. In other words, retirement planning involves many moving parts. When you know your earnings record is correct, you also know that the amount of Social Security you're owed is also correct, and that information helps you determine when you can afford to retire. You'll have more peace of mind If you've been working for 40 years, it may be tough to know whether your reported income for 1985 is correct. However, by checking your record once a year, you can stay on top of it. Support is available if you need assistance. You can call the IRS at 800-772-1213 and ask a representative to confirm that the amount added to your record last year was correct.Read NextMar 21, 2026 •By Maurie BackmanThink You'll Live on Social Security Alone? Here's the Reality Most Pre-Retirees Aren't Prepared For.Mar 20, 2026 •By Christy BieberAI Will Now Determine if Medicare Covers This CareMar 20, 2026 •By Maurie BackmanWhat Every High-Income Retiree Needs to Know About Medicare Before EnrollingMar 20, 2026 •By Kailey Hagen, CFPYou Don't Have to Take Required Minimum Distributions (RMDs) From These Accounts in 2026Mar 20, 2026 •By Kailey Hagen, CFPIs There a Right Time to Take Your Required Minimum Distributions (RMDs)?Mar 20, 2026 •By Maurie BackmanShould You Pause Roth Contributions in a High-Income Year?About the AuthorDana George is a contributing retirement and Social Security expert at The Motley Fool. Previously, Dana spent five years writing for Motley Fool Money and 20 years as a newspaper reporter. She is also the author of four published novels. She holds a bachelor’s degree in business management from Spring Arbor University. .TMFByGeorge