Common Social Security Myths Busted: The Truth About Eligibility, Payouts, and More 😎

Hello there, fellow reader! In this blog post, I am going to bust some common Social Security myths and give you the real deal about eligibility, payouts, and more 🕵️‍♀️. Social Security is a critical component of retirement planning, and people have many misunderstandings about it. Let’s dive into this together!

Myth #1: Social Security Will Run Out of Money Soon 🤑

This is perhaps the most common myth surrounding Social Security. People believe that the program is going broke and won’t last much longer. While it’s true that there are concerns about the program’s long-term financial outlook, it’s not going anywhere anytime soon.😏

According to the Social Security Administration, the program’s trust fund will be depleted around 2035. However, even when that happens, the agency will still be able to pay out a significant portion of promised benefits. So, don’t fret! Social Security is here to stay.

Myth #2: You Have to Be a US Citizen to Collect Social Security 🇺🇸

Many people believe that you have to be a US citizen to qualify for Social Security benefits, but that’s not entirely true. 👩‍👩‍👧‍👦

Non-citizens can receive Social Security benefits if they reside in the US lawfully and have accrued the requisite amount of work credits. People who have resided in the US for at least five years with a valid visa can also claim benefits. So, you don’t need to be a citizen to get Social Security benefits.

Myth #3: You Can’t Collect Social Security Until Age 65 🤨

Another common myth is that you can’t collect Social Security until you turn 65, but that’s not the case anymore. The minimum age to start collecting Social Security benefits is 62, but it’s not always the smartest move to do so.

The earliest age to collect 100% of your full Social Security benefits is now 66 for those born between 1943 and 1954. For those born later, the full retirement age may be 66 and a few months or 67. Keep in mind that the earlier you start collecting benefits, the less you’ll receive each month. So, waiting a while may be more fruitful in the long run.

Myth #4: Social Security Payouts Are Based on What You Earned When You Retire 😲

Believing that Social Security payouts are based on your earnings when you retire is another common myth that is entirely false. The amount of benefits you receive is directly tied to how much you earned throughout your working lifetime and up to your full retirement age. You can check your Social Security statement, which estimates your future benefits based on your earnings record.

Keep in mind that the payout percentage of your benefits is higher if you wait to start receiving payments until after full retirement age. Therefore, it’s wise to do some comprehensive retirement planning and maximising income beyond Social Security payouts.😉

Myth #5: If You Keep Working, Your Social Security Benefits Won’t Increase 👀

Finally, one of the most widespread myths regarding Social Security is that if you continue working, you won’t receive any additional benefits. This could not be further from the truth. Your Social Security benefits are calculated based on the highest 35 years that you’ve had income, so if you keep working and earning more, your benefits could increase.

Keep in mind that there is a cap on income and Social Security contributions, so earning more won’t raise your payout infinity. But still, continuing to work is an excellent way to keep yourself financially secure in retirement.

Wrapping Up: Don’t Believe Everything You Hear 🤔

Congratulations, you have made it to the end of this blog post! I hope I was able to provide you with some valuable insight and help you clear up any misunderstandings you might have had about Social Security. Remember, don’t believe everything you hear. It’s always best to do your research, confirm your facts, and make informed decisions that will positively impact your retirement planning. 😎