Key Points to Remember:

• Delaying Social Security only makes sense up to a certain age.
• Filing early isn’t an irreversible mistake.
• You can still qualify for benefits without a direct work history.

Millions of retirees in the United States depend on Social Security to make ends meet. With inflation impacting savings and living expenses, more people are expected to rely on these benefits to secure their financial future. This highlights the importance of understanding how Social Security works. Unfortunately, misconceptions about Social Security are widespread. Here are three common myths debunked to help you make informed decisions.

1. “Delaying Your Claim Always Pays Off”

While it’s true that delaying your Social Security claim beyond your Full Retirement Age (FRA) increases your monthly benefit, this strategy has its limits. For every year you wait past your FRA, your monthly payments grow by 8%. However, once you turn 70, the Social Security Administration (SSA) stops increasing your benefits for further delays.

What Does This Mean?
You’re not obligated to claim your benefits at age 70, but there’s no financial incentive to wait beyond that point. Delaying your claim can be a smart strategy up to a certain age, but holding out past your 70th birthday is unnecessary.

2. “Filing Early Means a Lifetime of Reduced Benefits”

Many people believe that filing for Social Security early—at 62 or any time before FRA—locks them into permanently reduced monthly benefits. While it’s true that early filing leads to lower payments, this isn’t always irreversible.

The One-Time Do-Over Rule
The SSA allows claimants one opportunity to reverse their decision. If you regret filing early, you can withdraw your application within 12 months and repay all the benefits you’ve received. Once this is done, you can reapply later, potentially locking in a higher monthly benefit.

However, keep the 12-month deadline in mind. If you miss it, this option won’t be available to you.

3. “You Can’t Get Benefits Without a Work History”

Social Security benefits are generally tied to your work history and the taxes you’ve paid. However, there’s an alternative way to qualify—through spousal benefits.

Understanding Spousal Benefits
If you’re married or divorced, you may be eligible to claim benefits based on your spouse’s work record. Spousal benefits can amount to 50% of your spouse’s benefit at their FRA.

Here’s what you should know:

• Your spouse must claim their Social Security benefits before you can file for spousal benefits.
• You don’t receive the full benefit your spouse is entitled to; your spousal benefit maxes out at 50% of their FRA entitlement.

Why Knowing These Facts Matters

Misunderstandings about Social Security can lead to costly mistakes or missed opportunities. Whether it’s deciding when to file, understanding your eligibility, or maximizing your benefits, a better grasp of the rules can help you prepare for retirement more effectively.

Final Thoughts

Social Security is a critical part of retirement planning, but navigating its complexities can be daunting. By staying informed and avoiding common myths, you can make the most of your benefits. Remember, your financial future is in your hands, so take the time to learn the nuances of Social Security.