Top Social Security Myths Debunked for Retirees

I am delivering a SS presentation at our firm’s annual holiday client brunch (500 people – mostly retired and approaching retirement age). I would like to design a “MYTH BUSTERS” style presentation around SS. If you have a moment, what are the top SS MYTHS that I can “de-bunk/bust” for the audience?

Presenting Social Security myths and debunking them in a "Myth Busters" style is an engaging way to educate your audience. Here are five of the top Social Security myths that you can address during your firm's holiday client brunch:

1. Myth: The nice Social Security representatives at the local office will provide advice and guidance.

   • Reality: Social Security representatives are there to take your application, but they do not provide personalized advice or guidance on maximizing your benefits. It’s crucial to seek advice from a knowledgeable financial advisor before making decisions.

2. Myth: Social Security is broke. Congress stole all the money from Social Security.

   • Reality: Social Security is not broke. It currently holds $2.8 trillion in U.S. Treasury bonds. While the trust fund is projected to be depleted by 2034, Social Security will still have income from FICA taxes and other sources, allowing it to pay 80% of benefits even without further action.

3. Myth: Social Security computes your benefit using your last 5 years of earnings.

   • Reality: Social Security calculates your benefit based on your highest 35 years of earnings. Even if you don’t have 35 years of earnings, they still use 35 years in the computation, adding zeros for the years without earnings.

4. Myth: You must notify Social Security at age 65 even if you are not filing for benefits or Medicare.

   • Reality: You do not need to contact Social Security if you are not planning to file for benefits or Medicare at age 65. There’s no requirement to notify them unless you are actually applying.

5. Myth: I will never collect all the money I paid into Social Security.

   • Reality: Most individuals will recoup all the money they paid into Social Security within about four years if they file at their full retirement age. After that, the benefits they receive are essentially "gravy."

The content on this blog is for informational purposes only and is not legal, financial, or professional advice. Social Security rules change periodically, so some information may become outdated. For the most accurate advice, consult a certified National Social Security Advisor (NSSA®). Social Security Professionals, LLC, and NSSA® are not responsible for any errors, omissions, or actions taken based on this blog's content. Use of this blog does not create a client relationship, and all information is provided "as is" without guarantees. By using this blog, you agree to hold Social Security Professionals, LLC, and NSSA® harmless from any claims or liabilities arising from its content. For personalized guidance, contact an NSSA® professional.