1. “Full retirement age is 65.”

This is one of the most widespread myths, and it causes real financial pain. If you were born in 1960 or later, your full retirement age is 67, not 65. Claiming at 65 locks in a permanent reduction in your monthly benefit. The same applies if you claim at 62, you’re cutting your benefit by about 30% for life. Knowing your full retirement age is essential if you want to maximize what you’re owed.

2. “Social Security will replace most of my income.”

Many people assume Social Security is meant to cover nearly all their living expenses, but that’s not how the system works. For the average worker, Social Security replaces about 40% of pre-retirement income. Lower-income workers may see a higher percentage, while higher earners get less relative to past wages. Without supplemental savings and investments, relying on Social Security alone can leave a huge financial gap.

3. “Spousal benefits reduce the primary earner’s benefit.”

This one causes so much unnecessary worry. Spousal benefits do not reduce or interfere with the primary earner’s payout. If you’re married or were married for at least ten years, you may qualify for spousal benefits worth up to 50% of your spouse’s full retirement amount. Even divorced spouses can qualify as long as they’re 62 and haven’t remarried. These benefits exist to help families, not penalize them.

4. “Social Security is going broke, so I should claim early.”

Fear pushes a lot of people into claiming early, and that fear usually comes from misunderstanding headlines. Yes, in 2034 the projected surplus may drop to the point where Social Security can pay about 81% of promised benefits if no changes are made. But the system is not going bankrupt, and lawmakers have many tools to adjust the program. Claiming early out of panic can drastically reduce lifetime benefits, especially if you live a long life.

5. “My Social Security benefits won’t be taxed.”

This is a painful surprise for many retirees. Your benefits may be taxed at 0%, 50%, or 85%, depending on your “provisional income.” That includes adjusted gross income, half your Social Security benefits, and even tax-exempt interest. For married couples, benefits become taxable once provisional income exceeds $32,000. Without proper tax planning, you can owe more than you expect reducing the income you take home.

6. “I can work and earn as much as I want if I claim early.”

This myth can cost retirees thousands. If you claim benefits before full retirement age, you can only earn up to $23,400 (2025 limit) before facing penalties. For every $2 you earn above the limit, $1 is withheld from your Social Security checks. Once you reach full retirement age, you can earn freely but claiming early while working can lead to major benefit reductions.

Why Strategic Planning Matters

These myths are common, but the consequences are very real. People lose lifetime income because they claim early, misunderstand spousal benefits, or ignore taxation rules. Strategic planning, even simple adjustments, can dramatically increase what you receive over time. Reviewing your earnings record, coordinating spousal strategies, planning tax-efficient withdrawals, and waiting until full retirement age when possible are all ways to boost your long-term financial security.

If you want peace of mind, clear numbers, and a plan tailored to your goals, a personalized financial assessment can help you understand not just Social Security but your cash flow, taxes, and investment risks. Smart planning today means a more comfortable, confident retirement tomorrow.

Intended for educational purposes only. Opinions expressed are not intended as investment advice or to predict future performance. Past performance does not guarantee future results. Neither the information presented, nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Consult your financial professional before making any investment decisions. Opinions expressed are subject to change without notice.

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• Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

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• Intended for educational purposes only and are not intended as individualized advice or a guarantee that you will achieve a desired result. Before implementing any strategies discussed you should consult your tax and financial advisors.

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