Some Common Myths To Ignore About Social Security

Social Security has much mythos surrounding the program that makes it difficult for the average person to sort the truths from the falsehoods. However, some of the misimpressions are more common than others and should be addressed. Below are a few of the myths most in need of being dispelled:

• The impending end of Social Security is a well known political and media narrative that has found a lot of traction among the American people. However, the truth of the matter is that it is the fund that supplements Social Security tax draws is what is under pressure and only then by 2034. In addition, even an exhausted trust fund will still allow benefits to paid out at a %75 level and would not stop completely.
• Claiming benefits at the earliest time is not always the best path. Depending on the circumstances, a person may be better suited waiting till a later age, all the to 70, and receive the yearly bump in benefits that comes with every birthday past age 62. Those that continue to work and are in good health, in particular, might be those best served by waiting.
• For those without a spouse or eligible dependents, the choice of when to tale Social Security is largely a matter of personal preference. But for those with family members that qualify for survivor benefits, the timing decision of is greater consequence. For example, waiting past age 62 will allow the yearly bump in benefits to pass through survivior benefits as well.

See Dan Caplinger, 3 Social Security Myths Debunked, WCSH 6, May 8, 2016.

Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.