Debunking Three Common Social Security Myths

Social Security is the financial lifeblood of millions of Americans. That’s why it’s critically important that everyone, especially older Americans receiving retirement benefits, understand the rules and regulations. To help clear up some common misconceptions, AOL talked to the experts about a few myths to sort fact from fiction.

Myth 1: Social Security is going bankrupt. While it’s true that Social Security trust fund reserves are being depleted, ongoing payroll taxes continue to fund a significant portion of benefits. Benefits may have to be cut, but recipients will continue to receive Social Security.

Myth 2. You should always claim as soon as possible. With Social Security, the longer you wait to collect, the bigger your benefit. However, experts caution that while waiting until full retirement age could bring a bigger benefit payment, the best time to claim Social Security really depends on your health, longevity, other income, and personal needs.

Myth 3. Your benefits aren’t taxed. That’s not necessarily true. Depending upon your other income, up to 85% of Social Security benefits may be taxable. Additionally, some states tax Social Security income.

The Seniors Trust is committed to improving the financial well-being of older Americans through the 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 ensure the long-term solvency of the Social Security program.