Common Questions
Social Security Myths Debunked: What's True in 2026
Social Security misinformation is everywhere. From family dinner conversations to financial forums, myths about Social Security spread faster than facts-and they're costing Americans thousands of dollars in lost retirement income.
These myths aren't just harmless misconceptions. They lead to real financial mistakes: claiming too early, missing spousal benefits, or making decisions based on fear instead of facts. Some people claim at 62 because they believe Social Security is "going broke," while others avoid claiming because they think they'll "lose money to taxes."
Let's separate fact from fiction with the most persistent Social Security myths and what the real rules actually say.
Quick Summary
"Social Security is going broke" → Faces challenges but won't disappear "Claim at 62 and invest the difference" → Rarely works in practice "Everyone breaks even at the same age" → Break-even varies by person "Benefits aren't taxed" → Up to 85% can be taxable "If married, both should claim together" → Coordination often beats simultaneous claiming
Myth #1: "Social Security Is Going Broke-Claim Before It's Gone"
The Myth
"Social Security is running out of money. Better claim at 62 before the government takes it away or cuts benefits to zero."
The Reality
Social Security faces financial challenges, but the program will not disappear.
What the 2023 Trustees Report actually says:
- The trust fund reserves will be depleted by 2034
- After depletion, incoming payroll taxes would fund about 77% of scheduled benefits
- This means a potential 23% benefit reduction, not elimination
Why the program can't disappear:
- Social Security is funded by ongoing payroll taxes (FICA)
- As long as people work, money flows into the system
- Even with trust fund depletion, current workers' contributions fund current retirees
Historical perspective: Social Security has faced similar "crisis" periods before (1977, 1983) and Congress made adjustments. Political reality makes benefit elimination impossible-Social Security affects 67 million Americans and their families.
Smart response: Base your claiming decision on your health, finances, and family situation-not fear about the program's existence.
Myth #2: "Claim at 62 and Invest the Difference-You'll Come Out Ahead"
The Myth
"Take Social Security at 62, invest the money, and you'll beat waiting until 70. The stock market returns more than the 8% you get from delayed retirement credits."
The Reality
This strategy sounds logical but rarely works in practice for most people.
The math challenge: To beat waiting until 70, your investments must consistently earn about 7-8% annually after taxes and inflation for 15+ years.
Real-world obstacles:
- Market volatility: 2000-2002 (-37%), 2008 (-37%), 2022 (-18%)
- Behavioral mistakes: Most people don't invest early Social Security consistently
- Sequence of returns risk: Poor returns early in retirement can devastate the strategy
- Taxes: Investment gains are taxable; Social Security provides tax-advantaged income
- Liquidity temptation: People often spend early Social Security instead of investing it
Example: Why it's harder than it looks
- Claim at 62: $1,800/month
- Wait until 70: $3,100/month
- Difference: $1,300/month to invest
- To break even: Need 7%+ annual returns for 20+ years
- Reality: Most people don't achieve this consistently
When it might work: High-net-worth individuals with disciplined investment habits and professional management. For most Americans, guaranteed Social Security increases beat investment risk.
Smart response: Social Security provides guaranteed, inflation-protected income. Don't risk your retirement security on investment performance you can't control.
Myth #3: "Everyone Breaks Even at Age 78-80, So Timing Doesn't Matter"
The Myth
"I've heard the break-even age is around 78-80 for everyone, so it doesn't really matter when you claim."
The Reality
Break-even ages vary significantly by person, and living past break-even means waiting pays off substantially.
Factors that affect YOUR break-even age:
- Your specific benefit amount: Higher benefits = different break-even
- Health status: Poor health = earlier break-even favors early claiming
- Marital status: Survivor benefits change the calculation entirely
- Other income: Tax implications affect after-tax break-even
- Work status: Earnings test changes the math
Break-even examples (62 vs 70):
- Person A (healthy, married): Break-even at 79, expects to live to 87 = 8 years of higher benefits
- Person B (health issues, single): Break-even at 81, expects to live to 76 = early claiming wins
- Person C (married, spouse has low benefit): Break-even for survivor benefits extends to spouse's death
The longevity reality:
- If you reach 65, men have 50% chance of living past 84
- Women have 50% chance of living past 87
- For married couples, 50% chance at least one spouse lives to 92
Smart response: Calculate YOUR specific break-even age based on your benefits, health, and family situation-don't rely on generic averages.
Myth #4: "Social Security Benefits Aren't Taxed"
The Myth
"Social Security is a government benefit, so it's not subject to income taxes."
The Reality
Up to 85% of your Social Security benefits can be subject to federal income tax, depending on your other income.
How Social Security taxation works: Social Security uses "combined income" to determine taxation:
Combined Income = Adjusted Gross Income + Tax-Free Interest + Half of Social Security Benefits
2026 Tax Thresholds:
Single filers:
- Combined income under $25,000: 0% of benefits taxed
- $25,000-$34,000: Up to 50% of benefits taxed
- Over $34,000: Up to 85% of benefits taxed
Married filing jointly:
- Combined income under $32,000: 0% of benefits taxed
- $32,000-$44,000: Up to 50% of benefits taxed
- Over $44,000: Up to 85% of benefits taxed
Real example:
- Single person receiving $30,000/year Social Security
- Also withdrawing $35,000/year from IRA
- Combined income: $35,000 + $0 + $15,000 = $50,000
- Result: 85% of Social Security ($25,500) becomes taxable
- Total taxable income: $60,500
State taxes: Some states also tax Social Security benefits, while others don't.
Smart response: Factor taxes into your claiming and retirement income strategy. Higher Social Security benefits may mean higher taxes, but typically result in more after-tax income.
Myth #5: "If You're Married, Both Spouses Should Claim at the Same Time"
The Myth
"Married couples should coordinate by claiming Social Security at the same age or time."
The Reality
Married couples often benefit from staggered claiming strategies that maximize household benefits and survivor protection.
Why simultaneous claiming is often suboptimal:
- Survivor benefits: The surviving spouse gets the higher of their own benefit or 100% of deceased spouse's benefit
- Higher earner waiting: Maximizes the survivor benefit for potentially 15-20 years
- Income timing: Lower earner claiming early provides household cash flow while higher earner's benefit grows
Better approach: Coordination strategy
- Higher earner: Usually waits until 70 to maximize survivor benefit
- Lower earner: Can claim earlier (62-67) to get income flowing
- Result: Higher lifetime benefits for the household
Example:
- Both claim at 62: Combined $3,500/month, survivor gets $1,750/month
- Coordinate strategy: Lower earner at 62 ($1,250), higher earner at 70 ($3,100)
- Early years: $4,350/month combined
- Survivor benefit: $3,100/month (vs $1,750 if both claimed early)
- Lifetime difference: Often $200,000+ more over both lifespans
Smart response: Higher earner should usually wait to maximize survivor benefits, while lower earner can claim earlier for cash flow.
Myth #6: "You Can't Change Your Claiming Decision"
The Myth
"Once you file for Social Security, you're locked into that decision forever."
The Reality
You have options to change your claiming decision, but they're limited and have strict deadlines.
Option 1: Withdrawal of application (within 12 months)
- Can withdraw your application within 12 months of first receiving benefits
- Must repay all benefits received (including spousal benefits)
- Can then re-apply later for a higher amount
- Only allowed once in your lifetime
Option 2: Suspend benefits (at Full Retirement Age)
- Can voluntarily suspend benefits between FRA and age 70
- Benefits grow by 8% per year (delayed retirement credits) while suspended
- Can restart at any time or automatically restart at age 70
- Spousal benefits may also be suspended
When these options help:
- You claimed early and circumstances changed (inherited money, better health prognosis)
- You want to maximize benefits for a surviving spouse
- You returned to work and don't need the income immediately
Limitations:
- Withdrawal must happen within 12 months
- Must repay all benefits received
- Suspension only available after reaching Full Retirement Age
Smart response: While you have some flexibility, it's better to make the right decision initially rather than rely on changing it later.
Myth #7: "Working While Receiving Social Security Always Reduces Your Benefits"
The Myth
"If you work while receiving Social Security, they'll take away your benefits."
The Reality
The earnings test only applies before Full Retirement Age (67). After 67, you can earn any amount without affecting your Social Security benefits.
Before Full Retirement Age (67):
- 2026 limit: $22,320/year
- Penalty: $1 withheld for every $2 over the limit
- But: Benefits are withheld, not lost-you get credit later
At Full Retirement Age and beyond:
- No earnings limit: Work and earn as much as you want
- No benefit reduction: Receive full Social Security regardless of work income
- Additional benefits: Extra work years can increase your Social Security benefit
Added benefit of working while receiving Social Security:
- Additional earnings may replace lower years in your benefit calculation
- Your benefit can actually increase if you're earning more now than in previous years
Smart response: Working after Full Retirement Age can only help your benefits, never hurt them. Before Full Retirement Age, consider whether the earnings test makes claiming worthwhile.
Myth #8: "File and Suspend Strategies Still Work"
The Myth
"You can file for benefits and immediately suspend them to trigger spousal benefits while earning delayed retirement credits."
The Reality
Congress eliminated most "file and suspend" strategies in 2016. Current rules are much simpler.
What changed in 2016:
- Old rule: Could file for benefits, immediately suspend, and spouse could claim spousal benefits
- New rule: If you suspend your benefits, all benefits based on your record are also suspended
What still works:
- Voluntary suspension at FRA: You can suspend your own benefits to earn delayed retirement credits, but spousal benefits also stop
- Restricted application (limited): Only available to people born before January 2, 1954
Current reality: Most complicated claiming strategies have been eliminated. The decision is now more straightforward: claim your own benefit when it makes sense for your situation.
Smart response: Focus on optimizing your basic claiming age rather than looking for complex loopholes that no longer exist.
How to Avoid Falling for Social Security Myths
1. Use Official Sources
Reliable information:
- SSA.gov - Official Social Security Administration website
- SSA.gov/myaccount - Your personal benefit estimates
- Annual Social Security Trustees Report
- Your local Social Security office
Be skeptical of:
- Social media posts about "new rules"
- Financial seminars promising "secret strategies"
- Generic advice that doesn't consider your situation
- Anyone claiming to have "inside information"
2. Get Your Personal Numbers
Use our tools:
- Social Security Calculator - See your actual benefits at different ages
- Break-Even Calculator - Calculate your personal break-even age
- Spousal Calculator - If married, see coordination strategies
Don't rely on:
- Generic examples that don't match your earnings
- Rules of thumb that ignore your health or family situation
- Calculators that don't use current SSA formulas
3. Consider Your Whole Situation
Claiming age factors specific to you:
- Your health and family longevity patterns
- Whether you're still working
- Your marital status and spouse's benefits
- Your other retirement income and tax situation
- Your risk tolerance and financial goals
Don't make decisions based on:
- What worked for your neighbor or friend
- Generic financial advice from non-specialists
- Fear-based scenarios about the program's future
- Oversimplified "rules" that ignore your circumstances
The Truth About Social Security Planning
Fact: There's No Universal "Right" Answer
The optimal claiming age depends on your specific situation. What's right for someone else may be wrong for you.
Fact: Small Differences in Timing Can Mean Big Differences in Lifetime Benefits
For many people, the difference between claiming at 62 vs 70 is $100,000-$300,000 in lifetime benefits.
Fact: You Can Make an Informed Decision
While Social Security is complex, you don't need to guess. Use official calculators, understand the rules, and consider your personal factors.
Fact: Professional Help May Be Worth It
For complicated situations (government pensions, substantial assets, complex family dynamics), a fee-only financial planner specializing in Social Security may provide valuable guidance.
Your Next Steps
1. Get the Facts About Your Benefits
Use our calculator to see your real benefits at different claiming ages
2. Ignore the Noise
Don't let myths and misinformation drive your decision. Base your choice on:
- Official SSA benefit estimates
- Your health and family situation
- Your financial needs and goals
3. Learn More
Continue reading:
- Should I Claim at 62, 67, or 70? - Complete decision guide
- How Social Security Benefits Are Calculated - Understanding the formula
- Social Security Earnings Test - If you're still working
4. Make an Informed Decision
Consider getting comprehensive guidance:
The myths we've debunked are just the tip of the iceberg. Social Security planning involves coordinating your claiming age with taxes, spousal benefits, work plans, and your overall retirement strategy.
The Benefora Decision Kit cuts through the noise with evidence-based guidance:
Myth-free analysis based on actual SSA rules and your situation Personalized calculations using official formulas Decision framework that considers all relevant factors Action timeline for implementing your optimal strategy
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This article provides educational information about Social Security rules and dispels common myths. It is not financial, legal, or tax advice. For personalized guidance, consult qualified professionals. Benefora is not affiliated with the Social Security Administration.
Last updated: February 2026 with current Social Security rules and tax thresholds.