Think you know a lot about Social Security? Think again!
Social Security is the premiere pension plan in America, which provides about half of elderly Americans with at least 50% of their income. For about one in five married couples and nearly half of single seniors, it’s 90% of their income.
It was first established in 1935 to provide retirement income for certain U.S. workers. It was later expanded to cover most of the workforce.
Now, several questions about Social Security may be the cause of stress for most retirees out there.
Adding to that fact is the many, many rules in the Social Security handbook– accumulating to around 2,700 rules you have to know for a hassle-free Social Security experience.
For a test, we’ve gathered some of the most common myths about Social Security– are they facts or fiction? Make sure you take note!
Recommended Read: How to Get $6,660 in Stimulus Money this 2021
- “Social Security retirement benefit amounts will increase between age 62 and 70.”
Social Security retirement benefit amounts increase every month you delay collecting them. This adds up to about 8% per year and is 76% higher at age 70 than age 62.
Once you begin collecting, your monthly benefit remains permanent. If you begin collecting at age 62, your benefit will not increase over time.
So yes, technically, this is true if you delay collecting.
2. “I can’t get social security while I’m still working.”
Not true! You can still receive Social Security benefits while you are still working. If you’ve reached full retirement age, you can work and earn as much as you’d like and receive full benefits.
If you’re under full retirement age, your benefits will be reduced temporarily. The money is not lost, however. Social Security will credit it to your record when you reach full retirement age, resulting in a higher benefit.
3. “If I’m divorced, I can’t collect benefits on the earnings of my former spouse.”
False. Divorced individuals are eligible to collect ex-spousal benefits based on the earnings of their former spouse if (a) they were married for 10 years or more, (b) are at least 62, (c) are single, and (d) if the amount is greater than what they would receive based on their own earnings.
4. “My partner and I owe taxes on Social Security.”
This is possible. It basically depends on your income, especially if you’re married. Marital status contributes greatly to the benefits received in Social Security, likewise, it may also contribute to the amount of joint income tax taxpayers may pay, based on their joined income.
5. “When I die, my surviving partner receives both of our benefits.”
No, this is false. When one of the couples dies, the survivor receives the higher amount of the two benefits, not a combined amount.
6. “I can’t collect my spouse’s Social Security benefits because I’ve never worked or earned income in my life.”
False! If you’ve never earned income, you may still collect Social Security spousal benefits based on your spouse’s earnings record.
There are rules that determine how much this amount is, but it is never greater than 50% of what the other spouse’s retirement benefit is.
7. “I’m a teacher, so I will already receive pension– which means I am not qualified for Social Security benefits.”
Not exactly. Teachers and other government workers can still receive benefits but the Windfall Elimination Provision will limit the benefit received.
8. “I’m a minor so I’m not eligible to receive Social Security benefits.
This is false! The minor and/or adult disabled children of a retired worker are eligible to collect “child” dependent benefits when a parent begins collecting retirement benefits.
9. “Only U.S. citizens may qualify to receive Social Security benefits.”
This is not true. Workers do not need to be U.S. citizens to qualify for Social Security.
10. “I don’t want to collect Social Security benefits anymore, but I can’t opt-out of it.”
You can definitely opt out of receiving social security benefits, but only during the first 12 months since filing for them. Additionally, you may withdraw your application and pay back the funds you have collected and then refile them later.
Recommended Read: Attention Singles: Stimulus Money up to $2,710 for Grabs
Here’s an additional little nugget of Social Security knowledge: according to Forbes, for 2021, the maximum Social Security benefit is just $3,011, per month, at full retirement age.
Those who wait to claim benefits at age 70 could receive as much as $3,895 per month. The average Social Security benefit used to be just at $1,543 per month.
If you still haven’t applied for Social Security benefits, you can apply via phone (1-800-772-1213), or online.
You’ll need to provide certain information and possibly some documents, such as a birth certificate. Social Security Form SSA-1 has a complete list. You can also inquire physically at your local Social Security Office.