Last Updated: December 15, 2025

Some pre-retirees and retirees have special situations that can impact their Social Security situation. Mistakes in these circumstances can result in financial consequences, so understand what you might be entitled to.

Mistake: Assuming you get to keep a Social Security overpayment

Wouldn’t it be great if Social Security overpaid you and you got to keep the extra benefits? It would, but it doesn’t work that way. If Social Security accidentally overpays you for whatever reason – whether it’s a miscalculation, changing in spousal benefits, etc – you’ll need to pay back any extra benefits you receive or face fines.¹ If you receive an overpayment it’s a good idea to notify the agency immediately to determine your best course of action.

Mistake: Not understanding how Social Security disability benefits work

If you meet the criteria, you can receive Social Security disability benefits even if you’re under age 62. However, you have to prove that you have a disability, and you have to meet income requirements. If your income rises above a certain level, or you no longer meet the criteria to be considered disabled, you’ll no longer receive benefits.

One potential mistake is thinking that you can get by on your Social Security disability benefits until you reach age 70 and then claim retirement benefits at the higher monthly payment. The reality is that if you’re on disability benefits, once you reach full retirement age, your benefit will immediately revert to retirement benefits without changing the amount.

You can’t delay your regular retirement benefits as a result of receiving disability benefits, so make sure you understand how Social Security disability works.

Medicare and Social Security disability benefits

Even if you’re not yet 65, you might be eligible for Medicare if you’re on Social Security disability. Healthcare costs can be a huge deal for retirees. If you had to retire early due to disability and you’re receiving benefits, you might be able to enroll in Medicare after 24 months of starting.

Supplemental Security Income

Another mistake is leaving money on the table if you’re eligible for other benefits through the Social Security Administration. For some low-income and/or disabled retirees it’s possible to get an extra payment through the Supplemental Security Income (SSI) program. 

Often, this program is aimed at those who are at least 65 and meet income requirements, or who are disabled or blind, even if they’re younger than 65. Take this into account when considering your Social Security strategy. Being eligible for SSI might also help you with eligibility for food assistance, which can be useful in retirement. 

SOURCES

1. “Social Security recipients struggle to pay back agency after unexpected overpayments.” CBS News, 5 November 2024, https://www.cbsnews.com/news/social-security-overpayment-woes-60-minutes/. Accessed 15 December 2025.