FEATURED ARTICLE

6 Social Security Myths That Can Lead to the Wrong Claiming Decision

Social Security is rarely as simple as choosing an age to file. Most people have heard rules of thumb from friends, coworkers, family, or online. Some contain a little truth, but they often leave out important circumstances that can completely change the answer.

Myth #1: There Is One Best Age to Claim Social Security

People often ask, “What is the best age to take Social Security?” The problem is, there really isn’t one answer that works for everyone.

You can generally start retirement benefits as early as age 62. If you claim before your full retirement age, your monthly benefit is reduced. If you wait past full retirement age, your benefit continues to grow through delayed retirement credits until age 70.

That sounds simple enough, but the decision usually isn’t.

Take two people who are both 62. One is still working, has substantial retirement savings, is married, and has the larger Social Security benefit in the household. The other has already stopped working, needs income now, is single, and has limited retirement savings.

They are the same age, but their circumstances are completely different.

That is why a good Social Security claiming decision should look at more than age. Income needs, whether you are still working, retirement savings, health and longevity, marital status, your spouse’s benefit, survivor needs, and taxes can all matter.

So the better question is not simply, “What age should I claim?”

It is, “How does Social Security fit into the rest of my retirement income plan?”

Myth #2: You Should Claim at 62 Because You May Never Live Long Enough to Break Even

A break-even calculation is one of the most common ways people look at when to claim Social Security. The idea is straightforward. If you claim earlier, you start receiving checks sooner. If you wait, you receive fewer checks, but each one is larger. At some point, the larger benefit can catch up with the money you would have received by claiming earlier.

That can be a useful comparison, but it should not be the only thing driving the decision.

For a married couple, the decision can also affect the surviving spouse later. The larger Social Security benefit may become an important source of income after one spouse dies, so a claiming decision made today can have an impact on the household years from now.

You also have to think about where your income will come from while you wait. Will you keep working? Will you need to take more money from an IRA or other retirement account? How could those withdrawals affect your taxes or the amount of savings you have available later?

And if you claim early, you have to consider the other side of the equation. How valuable could a larger monthly Social Security benefit be if you live well into your 80s or 90s?

“Break-even age is worth looking at, but it is only one piece of the decision.” – Matt Maresch

Myth #3: Waiting Until 70 Is Always the Smartest Strategy

The opposite rule of thumb can be just as misleading.

Waiting until 70 can produce a significantly larger monthly retirement benefit. For someone born in 1960 or later, for example, full retirement age is 67. Waiting until 70 results in a retirement benefit equal to 124 percent of the person’s full retirement age benefit. There is no additional increase for delaying beyond age 70.

That’s valuable.

But it does not mean everyone should wait until 70.

Suppose someone retires at 64 and needs $4,000 per month to support their lifestyle. If they delay Social Security, that money has to come from somewhere else, perhaps an IRA, investment account, pension, cash reserve, or continued employment.

Now compare that person with someone who plans to work until 70 and does not need Social Security to pay current expenses.

The same claiming strategy may not make sense for both people.

This is why I am cautious about statements like “always take Social Security at 62” or “always wait until 70.”

There are very few “always” rules in retirement planning.

Myth #4: Married Couples Should Make Their Social Security Decisions Independently

For married couples, Social Security should usually be examined as a household decision.

The higher-earning spouse may be looking at one set of options while the lower-earning spouse has another. There may also be potential spousal benefits and, eventually, survivor benefits to consider.

That means the question isn’t necessarily:

“When should I take my Social Security?”

It may be:

“What combination of claiming decisions makes sense for both of us?”

Survivor planning is an important part of that conversation. Eligible surviving spouses may receive survivor benefits based on the deceased worker’s record, and the amount available depends on several factors, including when benefits are claimed.

For some couples, maximizing one person’s individual benefit may also strengthen the income available to the surviving spouse later.

That’s why looking at two Social Security statements separately can miss an important part of the picture.

Myth #5: Your Spouse Automatically Gets Half of Your Social Security Benefit

This one creates a lot of confusion.

A spouse’s benefit can be up to 50 percent of the worker’s primary insurance amount, which is essentially the benefit the worker is entitled to at full retirement age. It is not necessarily half of whatever monthly check the worker happens to be receiving. Claiming a spousal benefit before the spouse’s full retirement age can also reduce the amount.

There is another important wrinkle.

If someone qualifies for retirement benefits based on their own work record and also qualifies for a higher spousal benefit, Social Security generally pays the person’s own benefit first and then adds enough spousal benefit to bring the combined amount up to the higher benefit. You do not simply receive your entire retirement benefit plus another 50 percent of your spouse’s benefit.

For most people filing today, the deemed filing rules also mean that if you are eligible for both your own retirement benefit and a spousal benefit, filing for one generally means you are considered to have filed for both. Different rules can apply to survivor benefits.

This is a good example of why a simple statement like “I get half of my spouse’s Social Security” can be misleading.

Myth #6: If You Work While Collecting Social Security, You Lose Those Benefits Permanently

You can work and receive Social Security retirement benefits at the same time.

However, if you are younger than full retirement age and earn more than Social Security’s annual earnings limit, some of your benefits may be withheld.

For 2026, the earnings limit for someone under full retirement age for the entire year is $24,480. Social Security generally withholds $1 in benefits for every $2 of earnings above that amount.

During the year you reach full retirement age, a higher limit applies. In 2026, it is $65,160, and Social Security generally withholds $1 for every $3 earned above the limit before the month you reach full retirement age. Beginning with the month you reach full retirement age, the earnings limit no longer applies.

But “withheld” does not mean the same thing as “lost forever.”

When you reach full retirement age, Social Security recalculates your benefit to account for months in which benefits were withheld because of your earnings.

There is also a completely separate issue: income taxes.

Depending on your total income, a portion of your Social Security benefits may be subject to federal income tax. That calculation is different from the Social Security earnings test.

Mixing those two rules together is another common source of confusion.

Special Announcement: Social Security Demystified Launches October 6

I’m excited to share that my book Social Security Demystified: Smarter Claiming Decisions, published by Retirement Ready Nation Media, will be released on October 6. The book was edited by Allen Bean, M.Div., Th.M., whose editorial work helped shape the final manuscript and presentation of the material.

Social Security Demystified includes 62 case studies that take Social Security rules out of the abstract and put them into situations readers can actually follow. Some look at the impact of claiming at different ages, while others explore married couples, surviving spouses, divorced individuals, disability, family benefits, and what happens when someone continues working after claiming Social Security. The goal is to help readers see which facts can change the analysis before a filing decision is made.

The book also includes access to the complimentary Social Security Demystified Reader Toolkit, hosted by Senior Healthcare Planning. The toolkit is designed to help readers think through when to claim, understand how different Social Security benefits can work together, and prepare for the decisions they may face before filing.

The Kindle edition is available for pre-order on Amazon. Beginning October 6, the book will be available in paperback, hardcover, and eBook formats. Print editions will be available through Amazon, and bookstores and other retailers will also be able to order copies through IngramSpark distribution.

Key Takeaways

• There is no single best age to claim Social Security.

• Rules of thumb can leave out important details.

• Social Security decisions should be viewed as part of a larger household plan.

THIS WEEK’S ACTION STEP

Pre-order Social Security Demystified: Smarter Claiming Decisions on Kindle today. The book officially launches October 6 and includes 62 case studies designed to help readers better understand how Social Security rules apply to real-life claiming decisions.

Fun Fact

The first Social Security payment ever made was a one-time lump-sum payment of a whopping 17 cents to Ernest Ackerman in 1937. He had paid just a nickel into Social Security before retiring.

Have a blessed week!
Matt

Founder, Senior Healthcare Planning
Founder, Ashbury Boutique Wealth Management

Disclaimer

Dollar figures and examples are illustrative, not a filing recommendation.

Sources

Social Security Administration, Historical FAQs
https://www.ssa.gov/history/hfaq.html

Social Security Administration, Development of Social Security in America
https://www.ssa.gov/policy/docs/ssb/v70n3/v70n3p1.html

SSA, How Work Affects Your Benefits (Publication 05-10069) — 2026 earnings-test figures

SSA, Delayed retirement / born 1960 or later

SSA, Benefits for spouses

SSA, Deemed filing