Debunking Three Common Social Security Myths

Millions of older Americans will rely on Social Security for their retirement income. With the financial future of this program in peril, it’s more important than ever that you know the truth about how it works. Fortunately, MoneyWise has shed some light on common misconceptions that can potentially ruin your retirement.

Here is the truth behind three common Social Security myths:

1. Your Social Security is set in stone. In all actuality, you have more control than you might think. While you can start receiving benefits at age 62, the longer you wait to collect Social Security the bigger your benefits will be.  
2. Social Security benefits are not taxed. There’s a reason they say that “the only sure things in life are death and taxes.” You will pay taxes based on your “combined income,” which the Social Security Administration defines as 50 percent of your Social Security benefit, plus any other earned income.
3. Social Security will replace your paycheck. Social Security benefits are meant to supplement not replace your income. For most people, the benefit will pay around 40 percent of what you earn while working. The average Social Security retirement benefit this year is only $1,907 per month.

The Seniors Trust is committed to improving the financial well-being of America’s retirees through passage of The Social Security Expansion Act. It will give retirees an immediate benefits increase of about $200 a month, a fair annual cost-of-living adjustment (COLA), increased minimum benefits, and will ensure the long-term solvency of the Social Security program.