Claiming Benefits Too Early
Many people start Social Security at age 62 because they want the income, but this reduces benefits by up to 30%. Compared to waiting until full retirement age (66-67 for most).
In the Panhandle, where:
- Life expectancy can extend well into the 80’s
- Healthcare costs rise later in life
- Pensions are less common
- outside public sector jobs
Starting early can mean tens of thousands of dollars lost over a lifetime.
Costly Impact: Smaller monthly check for life + reduced survivor benefits for a spouse.
Not Coordinating Benefits
Not coordinating spousal and survivor benefits can lead to mistakes many forget.
Married couples often file without strategy.
Common Mistakes:
- Lower – earning spouse files too early
- Higher earner files early without considering survivor benefit impact
- Widows/widowers don’t realize they can switch between their own benefit and survivor benefit strategically
Costly Impact: Losing out on the higher lifetime benefit and reducing protection for a surviving spouse.
Not Understanding Limits
When you continue to work without understanding earnings limit, it can reduce benefits.
If you claim Social Security before full retirement age and continue working:
- In 2026, earning above the annual limit (around mid $20,000 range) can temporarily reduce benefits.
Many people in the Panhandle:
- Keep working part – time
- Help with family businesses
- Do seasonal agricultural or oilfield work
Without planning, this can cause unexpected withholding.
Costly Impact: Temporary reduction of benefits and confusion about how and when they are restored.
Failure to Plan for Longevity
Many retirees underestimate how long they may live – and outlive their strategy. Social Security is
designed to reward patiences, especially for those who live into their 80’s and beyond.
Common Mistakes:
- Claiming early out of fear Social Security will “run out”
- Taking benefits at 62 without considering break even age
- Not factoring in family longevity or personal health history
- Choosing smaller monthly checks without evaluating. lifetime payout differences
Costly Impact: Locking in permanently reduced benefits and missing out on tens (sometimes hundreds) of thousands of dollars over a longer retirement.
Not Accounting For Taxes
Not accounting for taxes on Social Security is a mistake many make.
Texas has no state income tax, which is helpful, BUT many retirees forget:
- Social Security can be taxable at the federal level
- Required Minimum Distributions (RMDs) from IRA’s can push income higher
- Oil & Gas royalties (common in parts of the Panhandle) can affect taxation
Without tax planning, retirees may owe more than expected
Costly Impact: Reduced net retirement income.
What to DO
When in the Texas Panhandle…
Smart Steps Include:
- Running a personalized claiming strategy
- Reviewing spousal coordination
- Evaluating WEP/GPO exposure
- Coordinating with tax planning
- Communicating with your financial advisor and making smart decisions!
“I’ll be your guide on your financial journey. We’ll help you keep your shoreline in view on your way to your destination”
