Myth-Busting: Common Misunderstandings about Social Security
Surveys have shown that there is a fairly widespread lack of understanding about the basics of Social Security. One of the most frequently quoted studies is the survey conducted not too long ago by Massachusetts Mutual Life Insurance Co., wherein 72% of the 1500 respondents failed a basic quiz on Social Security facts. For example, half of the respondents incorrectly assumed that their benefit at age 62 would be same as what it would be at their full retirement age, and less than half understood that their benefit could be reduced after filing and before reaching their full retirement age if they continue to work. Overall, a surprisingly small number of respondents were unable to ace the examine, so to speak. (If you want to try your hand at it, you can access it here.)
And while not having a clear understanding of the basics of Social Security is one thing, holding on to popular myths and untruths about this critical benefit program is quite another, and it can be at least equally damaging to one’s successful comprehension of the program. USAToday contributor Ken Fisher has singled out what he classifies the four biggest myths one hears these days, and puts them in perspective for readers. All four of these misunderstandings are related to the looming insolvency issue Social Security is facing: the projected depletion of Trust Fund reserves and the resulting inability of the program–by 2034–to pay promised benefits. Read Mr. Fisher’s post here…
On the point of a lack of Social Security knowledge, it’s important to note that the AMAC Foundation provides a Social Security Advisory Service that can help. This service, provided free of charge to the public, is staffed by Social Security Advisors trained and certified by the National Social Security Association (NSSA), and can be accessed via email or telephone. Learn more about the service and how to access it here…
This posting is presented for informational purposes only and does not represent legal or financial guidance. Any opinions or interpretations presented are either those of the original author or, in the case of articles authored by the AMAC Foundation, are the opinions of AMAC Foundation staff, originally trained and accredited by the National Social Security Association (NSSA) and certified via the AMAC Foundation. Any links included in the article are valid on the posted date; socialsecurityreport.org cannot guarantee the duration of the links’ validity. NSSA and the AMAC Foundation and its staff are not affiliated with or endorsed by the Social Security Administration or any other governmental entity. To submit a question, visit our website (https://amacfoundation.org/services/) or email us at ssadvisor@amacfoundation.org. Because we are a non-profit organization, there is no charge for these services.