Millions of Americans glance at their annual Social Security statement and focus only on the projected monthly benefit. But ignoring the details in your earnings history could be one of the most surprising money mistakes you can make.
Your future Social Security payments depend directly on the income history listed in your file. Even one missing or incorrect year could reduce your monthly check for life.
Here’s why reviewing your Social Security record matters, and what steps to take before the end of 2025 to protect your retirement income.
Why your earnings record matters
The Social Security Administration (SSA) calculates your benefit based on your 35 highest-earning years, adjusted for inflation. If a year is missing or recorded incorrectly, it’s treated as $0, which brings down your average.
That means if a $50,000 work year isn’t recorded, it could lower your monthly benefit by more than $100. Over the course of a year, that’s more than $1,000 in lost income, all because of a single reporting error.
This is why checking your Social Security record is so important. You can log in to your account and confirm your earnings history is accurate, year by year.
Set up your “my Social Security” account
Start by creating or logging in to your my Social Security account at SSA.gov. Once signed in, you’ll be able to:
- View the wages or self-employment income SSA has recorded for each year.
- See your estimated monthly benefit at different retirement ages.
- Request a replacement card or download your SSA-1099 for taxes.
- Update personal details like your mailing address or direct deposit info.
Setting up the account only takes a few minutes, and it gives you faster access to important updates like the annual cost-of-living adjustment (COLA).
Check for errors in your earnings record
Once you’re logged in, open your earnings statement and scan each year. Common mistakes include:
- A missing year entirely
- A “0” in a year you know you worked
- Wages that look lower than what you earned
- An unfamiliar employer is listed
If anything looks off, find supporting documents such as W-2s, tax returns, or pay stubs. If you don’t have paperwork, write down the employer’s name, the year in question, and a rough estimate of what you earned.
Then contact SSA to request a correction. The agency can adjust records retroactively if you provide strong enough evidence.
Use your statement to plan smarter
Once your earnings are correct, your online account can help you plan when to claim benefits.
Your Statement shows estimated monthly payments at different ages, from 62 to 70. Under current rules, if your full retirement age is 67, claiming at 62 means a 30% reduction. Waiting until 70 increases your benefit by roughly 8% per year.
In January 2026, the average retired worker is projected to receive about $2,071 per month. Your actual benefit may be higher or lower, but reviewing your Statement helps you compare your options.
This info might help you:
- Decide to work one more year to replace a low-earning year.
- Delay your claim to increase your benefit.
- Get clarity on what your monthly income will look like in retirement.
Don’t skip your year-end review
Before the year wraps up, it’s also a good time to update your SSA profile. Changes in your life this year, like a move, marriage, divorce, or new bank account, could impact how and when your 2026 benefits arrive.
Double-check the following:
- Mailing address and contact details
- Marital status or family changes
- Direct deposit setup
- Tax withholding preferences
Delaying updates until next year could lead to interruptions in your benefit payments or other hassles.
Bottom line
Social Security is too important to leave to chance. Assuming your earnings are accurate without checking could cost you more than $1,000 a year in retirement.
Taking a few minutes to review your history and fix any mistakes now can help protect the income you’ve worked for. It’s one of the easiest ways to take control of your financial future, and it only takes about an hour.
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Editor’s Note: Portions of this story were drafted with assistance from generative AI tools. All final creative decisions, edits, and fact checking were done by human writers and editors.
