Maybe you've heard someone say, "Social Security won’t be around when I retire" or "You have to claim it at 62." These kinds of myths can shape how people plan (or don’t plan) for their financial future and to be honest, retirement planning is already tricky enough without misinformation getting in the way.
To help you cut through the noise, we’re breaking down 10 of the most common Social Security myths and sharing the facts you need to know.
Myth 1: Social Security Is Going Bankrupt
Truth: It’s not going bankrupt but it does need a tune-up.
You've probably heard this one before: “Social Security is running out of money!” The truth is a little more nuanced. The Social Security Trust Fund is projected to run short around the year 2033 but that doesn’t mean the program disappears overnight. Even if Congress doesn’t act, payroll taxes will still be collected, and those funds will cover about 77% of scheduled benefits.
Social Security isn’t going away anytime soon, and it has strong support from both Democrats and Republicans to keep it going. Still, some changes will be needed to ensure full benefits continue for future retirees.
Myth 2: You Have To Claim Social Security At 62
Truth: You can claim at 62 but waiting could pay off big time.
Age 62 is the earliest you can start claiming benefits, which is why many people assume it’s their only option. Here’s the deal: If you claim early, your benefit is reduced for life. On the flip side, if you wait past your full retirement age (usually 66 – 67), you’ll get a bump of about 8% more per year, all the way until age 70.
So while 62 might feel like the fast track, holding off could mean a much bigger monthly check down the road.
Myth 3: You Only Need A Few Years Of Work To Qualify
Truth: You’ll generally need around 10 years of work history.
To receive retirement benefits, you need to earn 40 credits. Most people earn 4 credits per year, so that’s about 10 years of work. It's not just a few summer jobs in college, it takes a decade of steady work and contributions to qualify.
Myth 4: You Can Survive On Social Security Alone
Truth: Social Security helps but it’s not designed to fully replace your income.
Some folks imagine Social Security as a sort of government pension that covers everything in retirement. In reality, the benefits are modest, and the average monthly retirement benefit in 2025 is expected to be around $2,000. That might cover some basics, but it probably won’t stretch far in today’s economy.
Experts talk about retirement planning in terms of a three-legged stool: Social Security, personal savings, and retirement accounts like IRAs or 401(k)s. All three legs are important if you want your retirement to feel steady. This is exactly why consolidating your scattered 401(k)s and IRAs matters so much. Social Security will cover the basics, but your retirement accounts need to do the heavy lifting.
