The Truth About Social Security Myths
When it comes to Social Security, misinformation is everywhere. Many Americans make costly decisions about when to claim benefits — often based on myths instead of facts. Understanding how Social Security really works can make a major difference in your financial security during retirement.
Myth #1: You Should Claim Social Security as Soon as You Can
According to NerdWallet, more than half of Americans apply for Social Security before reaching their full retirement age (FRA), and over 30% begin collecting at age 62. While it’s tempting to claim early, doing so can significantly reduce your lifetime benefits.
Between ages 62 and your full retirement age (66 or 67), your benefit grows by about 7% each year. From your full retirement age to age 70, it increases by another 8% per year. Waiting until age 70 can make your monthly check 24–32% higher than at full retirement age — and up to 76% higher than if you had claimed at 62.
Despite this, only about 1 in 25 retirees waits until 70 to claim benefits. For those who can afford to delay, the payoff is substantial.
Myth #2: It Doesn’t Matter When You Claim — You’ll Get the Same Amount Over Time
This is one of the biggest misconceptions. While Social Security is designed to balance lifetime benefits, claiming early means locking in smaller checks for life — and potentially reducing survivor benefits for your spouse.
If you expect to live into your 80s or 90s (and many do), delaying your claim can protect you from running out of savings later. According to the Stanford Center on Longevity, a 65-year-old man today can expect to live to age 84, while a 65-year-old woman can expect to reach 86.5. The Society of Actuaries predicts that one in two women and one in three men currently in their 50s will live into their 90s.
Even if you believe your life expectancy is shorter, it’s smart to plan for longevity — not the alternative.
Myth #3: You Should Claim Early to Invest the Money
While it might sound like a good strategy, there’s no guaranteed investment that provides a higher return than the increase from delaying Social Security. In addition, claiming early could leave your spouse with smaller survivor benefits if you pass first.
For couples, the higher-earning spouse should consider delaying benefits as long as possible to maximize the survivor benefit. When one spouse passes away, the surviving spouse receives the larger of the two checks — making that higher benefit invaluable.
Myth #4: You Have to Be Retired to Collect Benefits
You do not have to claim Social Security the moment you stop working. Many financial planners recommend using other income sources first — such as retirement savings or investment accounts — to allow your Social Security benefits to grow.
Even delaying from age 62 to 66 can result in about a 33% higher annual benefit for life.
Myth #5: Social Security Will Be Gone by 2035
You may have heard that Social Security is “running out of money.” That’s not entirely true. If Congress takes no action, the Social Security Administration estimates it could pay about 77–80% of scheduled benefits starting in 2035.
While adjustments will be needed, Social Security is not going bankrupt. The growing senior population — sometimes called the “silver tsunami” — ensures lawmakers will be pressured to keep the system solvent.
Making Smart Decisions About Social Security
Every individual or couple’s situation is unique — influenced by savings, debt, health, and work history. According to Barron’s, even the cost of living varies significantly by state, which can affect your best claiming strategy.
An experienced elder law or financial planning professional can help you determine when to take Social Security based on your overall retirement plan. The rules are complex — but with careful planning, you can maximize your lifetime benefits and protect your family’s future.
📞 Need Guidance?
If you have questions about Social Security timing or retirement planning, our team at Aging in Maine can help.
Call us at (207) 848-5600 or Contact Us today to schedule a consultation.
