Hailey
Social Security is a major part of retirement planning for millions of Americans, but many people still feel confused or worried about how the system works.
Because of rumors, outdated information, and common misunderstandings, people sometimes make choices that harm their long-term financial security.
To help you feel more confident and informed, this article explains three of the biggest Social Security myths in simple, clear language that anyone can understand.
Myth 1: “Social Security Is Going Bankrupt”
One of the most common fears people have is that Social Security will run out of money. The truth is very different. According to the 2025 Social Security Trustees Report, the program is not going bankrupt. It will still be able to pay benefits for future retirees.
What may happen, if Congress does not make changes, is that by 2033 the program might only be able to pay about 77 percent of scheduled benefits. That means the program continues, but payments may be smaller.
This situation does not mean Social Security is ending. Congress has several tools to fix the financial gap, including adjusting the payroll tax rate, removing the income cap, or changing the full retirement age. Since about 79 percent of Americans do not support benefit cuts, lawmakers are under strong pressure to act before reductions happen.
What You Can Do
The best thing you can do is focus on what you control. Social Security usually replaces around 40 percent of a typical worker’s income at full retirement age.
That means you need to plan for the remaining amount through savings, investments, or a retirement plan at work. It is also important not to claim benefits too early unless you truly need them. Claiming early can reduce your monthly check by up to 30 percent permanently.
Below is a simple table to help you understand the key facts about this myth:
| Topic | Details |
|---|---|
| Future of benefits | May reduce to 77% by 2033 |
| Public opinion | 79% oppose benefit cuts |
| Income replacement | Social Security covers about 40% |
| Early claiming | Reduces benefits by up to 30% |
Myth 2: “Budget Cuts Will Delay or Reduce My Benefits”
Another common belief is that federal budget cuts or reduced staffing at the Social Security Administration (SSA) will delay payments or reduce how much people receive.
This is not true. Only Congress can change the formula for benefits. Administrative cuts do not change payment amounts or payment dates.
However, reduced staffing at SSA offices can lead to longer wait times on the phone or in-person lines. But even if the offices are slow, benefits like Social Security and SSI will still arrive on time.
What You Can Do
To make the application process easier when your retirement time comes, apply for benefits about four months ahead. Using online tools and keeping all documents ready can save time. If you must visit an office, it is better to schedule an appointment instead of going as a walk-in.
Myth 3: “Social Security Benefits Are No Longer Taxed”
Some people believe that Social Security benefits are now tax-free due to recent changes in the law. This is incorrect. Social Security benefits can still be taxed depending on your income level.
The One Big Beautiful Bill Act did not remove taxes from Social Security. However, it added a temporary deduction that is available until 2028.
This deduction allows single filers with income up to $75,000 to deduct $6,000, and married couples with income up to $150,000 to deduct $12,000. The deduction slowly reduces for higher incomes and completely ends at $175,000 for single filers and $250,000 for joint filers.
What You Can Do
Find out if you qualify for the temporary deduction. Using tax-advantaged accounts such as Roth IRAs can help reduce your taxable income in retirement. You should also check that the right amount of tax is being withheld from your Social Security payments.
Understanding the truth about Social Security is an important part of planning for your financial future. These three myths often cause fear and confusion, leading people to make poor decisions about claiming benefits or saving money.
The reality is that Social Security is not disappearing, payments will continue, and you still have several ways to prepare wisely for retirement.
By learning the facts, saving regularly, planning ahead, and asking for professional advice when needed, you can enter retirement with greater confidence and stability.