Retirement Social Security

3 Social Security Myths You Can’t Afford to Believe

Three common Social Security myths that can shrink your income.

By David Maina

Edited by Amanda Machado

Updated Jan. 8, 2026

Many retirees plan around familiar ideas about Social Security that feel safe but do not always hold up. Some are based on outdated assumptions or oversimplified math, and left unchecked, they can quietly limit your income and flexibility if you want to retire comfortably.

Below are three Social Security myths that sound harmless but can cost you if you don't look closer.

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Claiming Social Security at 62 feels like the default choice

Many people treat age 62 as the obvious time to claim Social Security, assuming there's little downside or that the money evens out once they reach full retirement age (FRA).

In reality, claiming at 62 is never required. It's simply the earliest you can file. You can wait until full retirement age or delay all the way to age 70, and each year you wait increases your monthly check.

After full retirement age, benefits grow by about 8% per year, which can add roughly 24 to 32% by age 70 for people born in 1960 or later.

The trade-off works in the opposite direction at 62. If your full retirement age is 67, claiming at 62 permanently cuts about 30% from your monthly benefit. That reduction lasts for life, as once you claim Social Security, the lower base is locked in.

The key takeaway is that waiting can materially raise both monthly income and lifetime benefits. Before deciding, it helps to run a break-even analysis based on your health and finances, rather than assuming earlier is automatically better.

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Social Security is vanishing and will not be there for future retirees

A common fear is that Social Security is on the verge of collapse. When people hear the trust fund may run out, they often jump to the conclusion that benefits will vanish and the program can't be counted on.

That anxiety often drives rushed decisions, pushing retirees to claim early just to grab something before it disappears.

The reality is that Social Security does face long-term funding pressure, but it is not going away. For many years, the program collected more than it paid out, building a trust fund reserve of about $2.72 trillion by the end of 2024, according to the Social Security Administration (SSA).

As more baby boomers retire and people live longer, those reserves are expected to be depleted around 2034 under current projections. Even then, the program does not stop. Ongoing payroll taxes would still be enough to pay most benefits.

AARP notes that after the trust fund is depleted, Social Security is expected to cover about 81% of scheduled benefits. Official trustees estimate a similar outcome, with roughly 83% of benefits funded by incoming taxes. That means benefits would be reduced, not eliminated, even if no changes are made.

In the end, Social Security remains a meaningful income source, even under pessimistic assumptions. Planning as if it will vanish can lead to rushed claiming decisions that can permanently shrink your benefits.

Working after you claim Social Security permanently reduces your benefits

Some people believe they have to stop working once they file for Social Security. The fear is that every extra dollar earned will be taken away for good, making continued work a losing move.

That concern is understandable, but it's misplaced. Social Security applies an earnings test only if you claim benefits before full retirement age.

If you earn more than the annual limit, some benefits are temporarily withheld. In 2026, up to $24,480 in earnings is exempt. Above that amount, the SSA withholds $1 in benefits for every $2 earned.

Note that this withholding is not a penalty. Once you reach full retirement age, the earnings test ends completely. At that point, Social Security recalculates your benefit and credits back the amounts that were withheld. Your monthly check increases going forward so that, over time, you recover what was held back earlier.

Continuing to work can also raise your benefits directly. Social Security uses your highest 35 years of earnings, so additional work years can replace lower-earning or zero-earning years and raise your monthly check.

The risk comes from stopping work out of fear. Doing so means giving up income today and potentially a higher benefit later. That's why many advisors see continued work in early retirement as a way to strengthen, not weaken, a retirement plan.

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Bottom line

Social Security planning can feel complex, which is why many people fall back on simple rules of thumb. The problem is that the three myths above do not hold up, and relying on them can quietly cost you thousands of dollars over time.

The smarter move is to start with the facts. Use SSA calculators and official tools, factor in your health and life expectancy, and focus on how the program actually works to support a stress-free retirement.

That approach puts you in a stronger position to claim the benefit you've earned, at a time that makes sense for you.

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