What You Don’t Know About Social Security Can Hurt You

Answers – The remarks in the bold, italicized font are our comments.

1. If I take [retirement] benefits before my full retirement age, they will be reduced for early filing. True - Benefits can generally be claimed as early as age 62 but will be permanently reduced by as much as 30%.
2. If I am receiving [retirement] benefits before my full retirement age and continue to work, my benefits might be reduced based on how much I make. True – But If the retiree lives long enough, the reduced benefits will eventually be repaid.
3. Once I start collecting Social Security, my benefits will never change. False – A cost of living adjustment will be added to benefits for any year in which inflation occurs.
4. If I have a spouse, he or she can receive benefits from my record [of earnings] even if he or she has no individual earnings history. True – A qualifying spouse with no earnings record can generally receive as much as 50% of the benefit paid to the spouse with an earnings record.
5. If I have a spouse and he or she passes away, I will receive both my full [retirement] benefit and my deceased spouse’s full benefit. False – The surviving spouse generally receives the greater of his/her benefit or the deceased spouse’s benefit, but not both.
6. The money that comes out of my paycheck for Social Security goes into a specific account for me and remains there, earning interest, until I begin to receive Social Security benefits. False – There is no separate account holding a worker’s Social Security taxes withheld. There is no interest paid on the amount withheld.
7. Under current Social Security law, full retirement age is 65 no matter when you were born. False – This age ranges from age 65 to 67 depending upon the worker’s year of birth. Full retirement age is the age at which the worker can claim 100% of his or her benefit.
8. As a divorced person, I might be able to collect Social Security benefits based on my ex-spouse’s earnings history. True – A qualifying divorced spouse can receive as much as 50% of their former spouse’s benefit.
9. Under current law, Social Security [retirement] benefits could be reduced for everyone in 2035. True – The most recent Social Security Trustees Report projects that retirement and survivorship benefits will be paid in full through 2034. Without changes to current law, benefits will be reduced by approximately 25% in 2035. Disability benefits (a separate Social Security program) will be paid in full through 2065.
10. If I file for retirement benefits and have dependent children age 18 or younger, they also may qualify for Social Security benefits. True – Although subject to a family limit, the worker’s dependent children under age 18 are generally eligible for retirement benefits if the worker has claimed a retirement benefit.
11. If I delay taking Social Security [retirement] benefits past the age of 70, I will continue to get delayed retirement credit increases each year I wait. False –There is no reason to delay the claiming of retirement benefits beyond age 70.
12. I must be a U.S. citizen to collect Social Security retirement benefits. False – A qualifying legal immigrant with sufficient earnings may qualify for benefits when he or she reaches claiming age.