I'm a Bank Teller: 4 Mistakes I Wish Every Social Security Recipient Knew About
Don’t let your current retirement planning write checks your Social Security benefits can’t cash.
Roughly 70 million Americans rely on Social Security, but getting the most out of those benefits isn't always straightforward. Whether your monthly check is your only income or a supplement to retirement savings, small mistakes can mean lost money and long-term financial stress.
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Few people have a better view of those mistakes than bank tellers. Working on the front lines, they see firsthand what happens when retirees get it right — and when they don't.
Izabella Bogumil is a relationship advisor at Addition Financial Credit Union in Lake Mary, Florida — the credit union's equivalent of a teller — and a trusted point of contact for the retirees whose Social Security income she helps safeguard. Here are the four most common and costly mistakes she sees, and how to avoid them.
Mistake No. 1: Claiming Benefits Too Early
From choosing when to claim Social Security to managing your money once it hits your account, the decisions you make can seriously impact your retirement income. And while financial advisors see the strategy side, bank tellers see something else -- the day‑to‑day reality of how retirees handle their cash.
"The most common mistake I see is with seniors who reach age 62 and then immediately claim their benefits," Bogumil said. "This makes them lose a significant amount of their full benefit per month. With everything getting more expensive as time goes on, seniors who are cashing out early are struggling to make ends meet."
Just as the SSA reduces benefits for those who claim early, they issue credits that increase your payment for delaying retirement and claiming benefits late. "If possible, I recommend waiting until age 70 to claim Social Security to receive the maximum benefit," she said.
Bogumil has a good point, as the maximum Social Security retirement benefit in 2026 is $5,181 per month for those who delay claiming benefits until age 70, whereas the maximum benefit for those who claim benefits at the earliest age of 62 is $2,969 per month. It's $4,152 for those who claim at full retirement age (67).
Mistake No. 2: Relying Solely on Social Security
According to the SSA, 37% of men and 42% of women over 65 who receive Social Security count on their benefits for 50% or more of their income. Even worse, 12% of men and 15% of women rely on Social Security for 90% or more of their income, a percentage the program was never designed to support.
"For many seniors, Social Security is their main source of income, but there are many older members who need to return to work due to the rising cost of living," said Bogumil. "Unfortunately, Social Security just doesn't cut it as a sole source of income." This holds true for survivor or spousal benefits, as well.
The SSA has noted that benefits typically replace about 40% of pre-retirement income, which means other streams have to do the heavy lifting. "I recommend having a second or even a third source of income to cover those extra living expenses, such as a pension, 401(k) or IRA," said Bogumil.
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Mistake No. 3: Ignoring Your Records
Another big mistake is getting complacent and tuning out, which is by no means unique to seniors when it comes to financial management. They have the most to lose, though. Just like with budgeting, make sure to keep track of what money is coming in and going out.
"Many seniors feel as if once they apply and are receiving Social Security, they can 'set it and forget it,'" said Bogumil. "However, records can often be incorrect or incomplete. I recommend seniors check their earnings reports yearly to ensure they are accurate and complete. If something seems incorrect, contact the Social Security Administration right away."
Mistake No. 4: Not Seeking a Financial Advisor's Assistance
This last error is not unique to people of retirement age, but it can harm them more than younger demographics: trying to navigate a complex financial procedure on your own without fully understanding the process, options or potential outcomes.
"Social Security is not always an easy step-by-step process," said Bogumil. "I hear from many seniors who find the process lengthy and confusing when they go to apply. Financial advisors can help build a plan and walk individuals through each step on how to get the most out of their benefits."
Andrew Lisa contributed to the reporting for this article.
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This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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