1. You may not be able to sign up in your birth month if you’re applying immediately at age 62

After decades of paying into Social Security, you're finally ready to start getting money back from the program. You've decided to apply in 2027, and you may already have a rough idea of what benefit amount you might qualify to receive.

But there are a few things you might not know about how Social Security works. The program has a few tricky rules that can cost you money if you aren't prepared for them. Here are three rules to keep in mind before you fill out your application.

The Social Security Administration requires you to be 62 for the entire month to be eligible to claim checks for that month. Your birth month only counts if you were born on the first or second. Otherwise, you become eligible in the month following your birth month.

This could pose challenges for you if you were counting on your checks to start covering your expenses right away. Make sure you understand when your first benefit payment will arrive and have a plan for covering your living expenses in the meantime.

You qualify for your full Social Security benefit at your full retirement age (FRA). This is 67 for most workers today. Claiming under this age reduces your checks by up to 30%. This loss is usually permanent. You can also delay Social Security beyond your FRA, and your checks will continue to grow until you qualify for your maximum benefit at 70.

This doesn't mean delaying your Social Security application is always your best option, though. Doing so can make sense if you expect to live into your 80s or beyond and can afford to cover your retirement expenses on your own for a few years. If not, you may be better off signing up at your FRA or earlier.

The Social Security earnings test withholds benefits from your checks if you earn more than a certain amount while under your FRA. In 2026, you lose $1 from your checks for every $2 you earn over $24,480 from your job if you're under your FRA all year. Those who reach their FRA this year only lose $1 for every $3 they earn over $65,160, and only if they earn that much before their birth month.

These limits will be slightly higher in 2027. We'll find out what they are when the Social Security Administration announces the annual cost-of-living adjustment (COLA) update on Oct. 14, 2026. But there's still a chance you could have money withheld due to the earnings test next year. Fortunately, these dollars come back to you as a benefit boost when you reach your FRA.

If you have any questions about how signing up for Social Security in 2027 could affect your checks, contact the Social Security Administration for more information. You can do this by phone or by scheduling an appointment at your local Social Security office.

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