7 Social Security Myths That Could Cost You Big

Social Security is one of the most important financial safety nets in the United States—but it’s also one of the most misunderstood. Misinformation spreads fast, and believing the wrong thing can seriously cost you in the long run.

Let’s clear up seven of the biggest myths so you can make informed decisions and protect your benefits.

Myth #1: Social Security will disappear in 2034

No, Social Security isn’t going away. It’s true that the trust fund is projected to run out around 2034, but that doesn’t mean the program will vanish. The bulk of Social Security is funded through payroll taxes, and those won’t stop.

Even without any changes, the Social Security Administration estimates that around 77% of benefits would still be paid. Congress is also likely to act before benefits are significantly cut. Claiming early out of fear can permanently reduce your monthly check, so don’t rush your decision based on headlines.

Myth #2: You can’t work while collecting Social Security

You can absolutely work while receiving retirement benefits. If you’re under full retirement age, your benefits may be reduced if you earn over the annual limit. But once you reach full retirement age, you can earn as much as you want without any reductions.

This rule applies specifically to retirement benefits. If you’re receiving disability benefits like SSDI or SSI, different income limits and rules apply.

Myth #3: Social Security benefits are never taxed

Social Security can be taxed if your total income passes certain thresholds. If you’re single and your combined income is more than $25,000—or if you’re married filing jointly and your income exceeds $32,000—then a portion of your benefits may be taxable.

A temporary tax credit for seniors has been introduced to help offset these taxes from 2025 to 2028, but this is not a permanent fix. You’ll still want to prepare for the possibility of tax bills in future years.

Myth #4: You can’t get benefits unless you worked

Even if you’ve never worked, you may still qualify for Social Security benefits through a spouse or ex-spouse. Spousal and survivor benefits are available as long as your marriage lasted at least 10 years in most cases.

This is an often-overlooked opportunity, especially for widows, widowers, and divorced spouses who assume they’re not eligible. It’s always worth checking your eligibility, even if you don’t have a personal work history.

Myth #5: Social Security will replace your full income

Social Security is not meant to be your entire retirement income. On average, it replaces about 40% of your pre-retirement earnings. Higher earners may see an even smaller percentage.

If Social Security is your only source of income, you might be eligible for other support programs. Check our guides on SSI, SNAP, utility assistance, and other relief options that can help fill in the gaps.

Myth #6: You have to claim as soon as you turn 62

While you can file as early as age 62, it often comes at a cost. Claiming before your full retirement age could reduce your monthly benefit by up to 30%, and that reduction lasts for the rest of your life.

If you need income at 62 and can’t continue working, it may be worth looking into disability benefits. SSDI can offer support without reducing your long-term retirement benefits, although the application process is more involved.

Myth #7: Social Security isn’t worth optimizing

The timing of when you file for Social Security can have a huge impact on how much you receive over your lifetime. Waiting until full retirement age—or even until age 70—can significantly increase your monthly benefit.

Social Security decisions aren’t one-size-fits-all. Understanding the facts can help you get the most out of the benefits you’ve earned.

Relief Recap

Understanding how Social Security really works can help you avoid costly mistakes and get the most out of the benefits you’ve earned. Whether it’s timing your claim or finding extra support to make ends meet, the right information makes all the difference.

If you’re looking for more ways to save money, get free help, or access local resources, explore the rest of our site. We’re here to help you make every dollar count.