6 Popular Social Security Myths Busted

Do you have questions about Social Security? You’re not the only one.  Social Security seems to have everyone fooled. It would appear that half of Americans think Social Security will be the answer to all of their retirement problems, while the other half thinks that Social Security will run out of money tomorrow. There are many social security questions including what the social security age is, what the benefits are and how one can enroll in the benefits.

So how can we begin to decipher fact from fiction? Read on to learn 6 popular social security myths busted.

MYTH 1: Social Security will Completely Fund Your Retirement

I wish this myth was true! Social Security was meant to substitute your income after retirement and provide you with enough money to live, not to be there to provide you with enough money to live luxuriously in your twilight years. With an extended life expectancy and higher cost of living than when the program was first implemented, Social Security can no longer be counted on to completely fund your lifestyle after retirement. That being said, I recommend meeting with a financial advisor to help you work on a budget to get the most bang for your buck.

MYTH 2: You Should Enroll in Social Security as Soon as Possible

Now I know the prospect of receiving free money in the mail (your social security checks) is enough to get most people to run to the nearest phone to call the Social Security Administration, but I’m telling you to wait. If you didn’t know, you can begin collecting social security as early as age 62 but if you have the means to wait, you should. By simply waiting to collect until you are age 70, you will collect 8 percent more money per year. What does this mean? More free money (although technically you’ve worked for this money).

MYTH 3: The Social Security Administration will Completely Help You Through The Process Of Enrolling

Sorry folks, the fine people that work for the Social Security Administration are not financial advisors and are limited in how far they can help you. Sure, they’ll recommend the right forms to fill out and even help you get your money as quickly as possible. However, I would recommend consulting with a financial advisor to best help you come up with a plan to maximize your social security checks. When it comes to managing money, it’s always best to consult a professional.

MYTH 4: Social Security Will Run Out

Social Security will run out is the doomsday-esque predication that has been floating around the internet for years. This is simply false, although the concerns for the stability and longevity of the Social Security fund are warranted, experts don’t predict that the fund will be unable to fulfill its responsibilities to retirees in the near future.

MYTH 5: You Can Spend Your Entire Social Security Check

Ahh taxes, you seem to never go away. No, you can’t spend your entire social security check, unfortunately, as you need to save money for taxes. Dang, Uncle Sam seems to always win.

MYTH 6: You Can’t get Social Security if You Work From Home

Nope, you can get social security even if you work from home. You can also receive half of your spouse’s Social Security benefits even if you are divorced, as long as you were married for 10 years.