Taking full advantage of Social Security benefits is an important part of any retirement income strategy. Yet how best to do so is often difficult due to the federal program being complicated and difficult to understand. Misconceptions are common and widespread, and competing points of view also exist as to when Social Security should be taken, but don’t get confused – below we explain what’s true and what is a myth.

Myth 1: Social Security benefits won’t be there when I retire.

The solvency/insolvency of the Social Security program is an ongoing topic of conversation these days. Insolvency means that the trust fund is unable to pay 100% benefits. It does not mean that Social Security will be completely eliminated and unable to pay any benefits, and pay them on time. Future benefits may only be paid from taxes collected, rather than reserves, which would cover roughly 80% of benefits.

Myth 2: Social Security will be a major source of retirement income.

Social Security benefits are just one piece of the puzzle when planning for retirement. Social Security alone is not likely to provide enough income for most people, especially taking into account escalating medical bills. Social Security benefits should be incorporated into your overall planning and budgeting, just like RMDs, and can be a helpful supplement to other income sources.

Myth 3: Social Security benefits don’t keep up with inflation.

Social Security payments are actually designed to keep pace with the rise in cost of living. Every year the Social Security Administration evaluates inflation data and responds accordingly. You may have received a notice regarding the new cost of living adjustment – which was 2.5% – which became effective in for 2025.

Myth 4: You will outlive Social Security.

It is not possible to outlive Social Security. Once you choose to start benefits, you will receive a payment every month until your passing. If your spouse survives you, and receives their own benefits, they will receive the higher of the two amounts, but cannot receive both. Generally, if you are the surviving spouse and don’t have your own Social Security retirement benefit, you could be eligible to receive a spousal benefit of 50%. More here: https://www.ssa.gov/survivor

Myth 5: I should claim my Social Security benefits as soon as possible.

Depending on your birthday, the “Full Retirement Age,” or the point at which you’re eligible for your full, unreduced retirement benefit, will fluctuate. You are allowed to begin taking Social Security as early as age 62, or as late as 70. However, the longer you wait, the higher your monthly benefit payments will be. The maximum benefit amount will be reached if you hold off until age 70, and this is what many retirees choose to do. But this may not be the best choice for everyone, so talk with your TFG Financial Advisor to determine the best time to begin taking benefits.

Myth 6: Social Security income isn’t subject to taxes.

You may need to pay taxes on your benefits, even though they are paid out by a government program. Up to 85% of your Social Security benefits may be taxable, depending on whether you are still working, or you receive income from other sources. If this is the case, your monthly Social Security benefits can be temporarily reduced if you are working and receiving benefits before your full retirement age (FRA), if your earnings exceed a certain annual limit.

Contact us: Misinformation is everywhere, especially on the internet. Whether retirement is close at hand or far into the future, be sure to have a conversation with your TFG Financial Advisor to create a sound strategy for your retirement, which includes when to take your Social Security benefits. Reach out to us at 561-209-1120.