5 Of The Biggest Myths About Social Security
The social security system is very intricate and can lead to misinterpretations. For this reason, there can be some common beliefs that are fallacies. Here are the four myths most people believe to be true and are not.
Myth 1: Collect Benefits Early
If you opt to take your benefits between 62 and full retirement age they overall amount will be drastically and permanently decreased. It is allocating your funds based on a longer period, which obviously dilutes payments. Unfortunately, more than half of Social Security recipients in 2015 collect before reaching the full retirement age.
Myth 2: The Money Taken Out Of Your Check Is Yours
Most retirement plans like a 401(k) or IRA are a separate account that you make payments into and can only be accessed by the account holder. The money you give to social security is given to people who are currently receiving benefits. You will get your benefits from people currently working and taking money out of their paycheck for social security.
Related Post: Clueless When it Comes to Benefits? You’re Not Alone
Myth 3: No Social Security For Millennials
Most young people have heard that baby boomers far exceed the millennial generation and thus believe there won’t be any social security funds for them. Not only would the government find a solution to this, but also Social Security trustees predict the fund won’t deplete until 2034. There will be changes made to alleviate this issue like increasing the retirement age or reducing benefits for individuals with high earnings.
Myth 4: You Can’t Receive Benefits If You Haven’t Worked
If you haven’t worked in the home or outside you will not be able to collect, but you may be able to collect from a spouse. You are entitled to benefits from the working spouse, but it will not exceed half of their benefits. If you are divorced and married for at least 10 years than the same applied to you.
Hopefully, you see social security in a brighter light and have more clarity about your benefits. Meet with an Orange County social security disability attorney to get maximum benefits.
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Kenneth G. Marks has been practicing personal injury law since he was admitted to the California Bar in 1981.