Five Social Security Myths That Can Cost You

Source: Kiplinger

Before you file for Social Security, make sure you’re not buying into misinformation that could shrink your retirement income for life.

Many Americans believe common myths — like thinking Social Security isn’t taxed anymore, or assuming they’ll get their ex-spouse’s benefits no matter what. Others panic about the program “going away” and rush to claim at 62, locking in a permanent reduction of up to 30%.

In reality, up to 85% of your Social Security income can be taxed depending on your combined income. And while the trust fund faces a funding shortfall by 2033, experts warn that claiming early out of fear could leave you worse off — especially if you end up getting 80% of a reduced benefit rather than 80% of a larger one.

This article also clears up confusion about benefit estimates. You can calculate your expected monthly payment using tools from the SSA — and it’s critical to do so. Overestimating could leave you short in retirement. It also highlights ways to increase your benefit, such as working longer, delaying past full retirement age, and reviewing your earnings record for mistakes. And if you’re divorced? You might be eligible for spousal benefits — but only if you meet certain conditions, like being married for at least 10 years and currently unmarried.

Understanding how and when to claim Social Security can mean the difference between just getting by and building a more secure retirement. Don’t let these myths guide your decision-making.

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