Social security is considered a big part of the retirement plan for people and has become a complex topic that pays out $93 billion every month to 65 million retired workers, people with disabilities, and their family members. It is a popular scheme for adults in the US and is supported by 90% of the citizens. The recent trends and changes in Social Security have raised a few eyebrows. After 85-years, these changes will take time to adjust between people. There have been many misconceptions about how social security is funded and how it will work. Here we discuss the top social security myths that are not going anywhere.
Social security can cover income needs
It is better to have an additional source of income when you retire as social security with not be able to cover all your needs. Social security consists of benefits that are only 33% of the income that seniors receive previously. It is not meant to cover up all your expenses that your income can cover. Your benefits depend on the earnings you had when you were working. So you will need an additional source of income to pay for your hobbies, travel plans, expenses, and more.
The sooner, the better
Another misconception is that you should go for social security as soon as you are eligible. 62 is the age to start receiving your social security. If you take your social security early, the amount you receive each month will start reducing. If you start to withdraw early, you may not receive enough in the later years when you will need it the most. Try to earn while you can and keep the social security for later days.
You need to be present at the office
The Social Security office is also an option to fill out the application for social security perks. However, you can also visit the official website on the internet today to complete the entire process online. You can apply for social security benefits when you become eligible by visiting the website. Make sure that you have the documents ready for the application. It is a good idea to start at least four months before you can expect to collect your benefits.
You cannot work after receiving social security
Another misconception among people is that you cannot work after receiving social security. You are allowed to work and also show your performance to improve your social security benefits. You can earn up to $18,240 after 62 and not have any reductions in your benefits. But if you make more than that, you will have your benefits reduced slightly with every dollar your earn above the limit. It does not mean that you cannot have a second income. Once you reach 67, you can earn as much money as you want without reducing your benefits.