In the words of Mark Twain, “It ain’t what you don’t know that gets you into trouble. It’s what you know for sure that just ain’t so.” This quote rings particularly true when we broach the subject of Social Security – an intricate conundrum that remains shrouded in misconceptions, despite its monumental role in the lives of millions of Americans.
From retirement benefits to disability payouts, Social Security is the quintessential social safety net that has weathered many a storm. Yet, it is often caught in a web of myths that distort its reality. Let’s pull back the curtain on these misconceptions and shine a light on the facts.
The Origin and Purpose of Social Security

Social Security emerged from the ashes of the Great Depression as a beacon of hope for a demoralized and economically battered population. Its primary mission? To offer a lifeline to an aging population and others in need, thus reducing poverty and bridging the wealth gap.
Fast forward to today, and Social Security remains a critical piece of the federal budget and a crucial part of our social welfare system.
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The Ten Myths About Social Security

Myth 1: Social Security is going bankrupt

Contrary to popular belief, the trust fund that underpins Social Security isn’t on the brink of insolvency. According to policy expert Alicia Munnell, “The fund is capable of paying full benefits until 2034.” Beyond that, payroll taxes could still cover about 76% of benefits. The real challenge lies in addressing the long-term sustainability of the system, a matter that requires bipartisan solutions.
Myth 2: The retirement age is too low

The retirement age isn’t arbitrarily decided; it reflects a balance between life expectancy and the physical demands of work. Raising the retirement age could exacerbate the generational divide, as millennials already face a less stable employment landscape than the baby boomers did.
Myth 3: Social Security benefits are not earned

This is one myth that has stubbornly persisted. The truth is that Social Security benefits are calculated based on your income and how long you’ve worked, making it a form of ‘earned’ benefit. Moreover, taxation contributes significantly to Social Security, underscoring its contributory nature.
Myth 4: Social Security is only for retirees

While retirement benefits are a significant part of Social Security, they’re not the whole story. Disability benefits and survivor benefits are also critical components, providing a lifeline to millions of Americans.
Myth 5: Immigrants drain Social Security funds

In fact, immigrants, particularly those who are undocumented, contribute billions to Social Security through payroll taxes, often without any prospect of receiving benefits due to eligibility rules.
Myth 6: You’ll never get back what you put in

Many people believe they won’t see a return on their contributions. However, with the inclusion of disability benefits, survivor benefits, and cost-of-living adjustments (COLA) for inflation, many beneficiaries do receive more than they contribute over time.
Myth 7: Social Security is a poor investment

Social Security isn’t an investment scheme; it’s a social insurance program designed to provide a basic level of income to those who need it. As certified Financial Planner Michael Costa of Consolidated Planning Inc. aptly put it, “Social Security, when delayed from Full Retirement Age (FRA) to age 70, can be one of the best “investments” made by retiree and mathematically can improve longevity of assets.”
He further says that “By delaying social security benefits until age 70, retirees will receive an 8% increase in annual benefit for each year delayed past full retirement age. For example, if a retiree was born in 1960, their FRA is age 67; if benefits are delayed to age 70, the retiree’s benefit would increase by as much as 124%. This increases the retiree’s annual benefit in a significant manner which, once benefits are turned on at age 70, reduces the amount of distributions from the retiree’s assets which offers greater asset preservation long-term. It’s hard to beat an 8% increase annually, almost guaranteed, plus cost-of -living-adjustments (COLAs) just about annually.”
Myth 8: Politicians don’t pay into Social Security

All politicians have paid into Social Security since 1983. The idea that they’re exempt is a common misconception that has been debunked multiple times.
Myth 9: Social Security will be replaced by private accounts

Privatizing Social Security is a contentious issue that has been met with widespread public opposition. The risks and challenges of such a move, including increased exposure to market volatility, make it a controversial and unlikely shift.
Myth 10: Social Security is unrelated to poverty reduction

Social Security plays a vital role in reducing poverty, particularly among the elderly. As Chris Chen, a wealth strategist at Insight Financial, noted, “It is badly kept secret that most people retire with little to no retirement savings. 48% of seniors over the age of 55 had no retirement savings at all.” According to Chen, “Clearly, Social Security income is an essential part of these retirees’ income.”
The Social Security Administration, in 2021, said Social Security retirement benefits covered 50% or more of the entire income of 71% of single retirees and 50% of the entire income of married retirees.
Final Thoughts

Myths and misconceptions can cloud our understanding and judgment, and when it comes to Social Security, the stakes are too high for such confusion. As the backbone of our social welfare system, Social Security impacts millions of lives daily – from baby boomers to millennials, from the retired teacher in Arizona to the disabled veteran in Virginia.
The program isn’t perfect, and it does face significant challenges, including an aging population, political polarization, and questions around Medicare and Social Security’s economic impact. But understanding the facts and separating them from fiction is an essential first step toward any constructive dialogue about its future.
As we continue this conversation, it’s critical to remember the words of former President Franklin D. Roosevelt, who created Social Security: “We can never insure one hundred percent of the population against one hundred percent of the hazards and vicissitudes of life, but we have tried to frame a law which will give some measure of protection to the average citizen and to his family against… poverty-ridden old age.”
In the face of our rapidly evolving world, Social Security remains a testament to our collective responsibility towards each other. Let’s keep the conversation going, keep the myths in check, and work together toward a system that continues to serve us all. After all, isn’t that what Social Security is all about?
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