Social Security Myths You Need to Know About

While people are familiar with Social Security benefits, and know that most U.S. workers will be able to claim this monthly payout when they retire, there are a number of myths about Social Security that persist.

What Is Social Security?

The Social Security Act was signed into law by President Franklin Delano Roosevelt on August 14, 1935. The aim was to provide financial support to those 65 and older, who would be able to collect a monthly payout based on payroll tax contributions that each worker made during their working years.

9 Common Social Security Myths

You Have to Start Claiming Social Security at Age 62

If you file for Social Security at age 62, you get a permanently reduced benefit amount. You don’t qualify for 100% of your benefit, which is based on your earning history, until full retirement age — which is 66 and 4 months for those born in 1956, gradually increasing to age 67 for those born in 1960 or later.

Social Security Will Cover All Your Income Needs in Retirement

The intention behind Social Security was always that it would provide a form of basic or supplemental income — not that it would or should cover all of an individual’s income needs in retirement. For that, most people will also need a retirement fund of some kind.

Social Security Is Going Away

Even if Social Security reserves are depleted, the fund would continue to receive deposits — in the form of Social Security taxes that workers pay. This would keep the system going, even if benefits were reduced.

You Can’t Claim Social Security If You’re Still Working

You can get Social Security benefits when you’re still working in retirement. The question is: Is that your best move? Depending on your age, your benefit amount could be reduced.

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