Myth Busters - Social Security Edition - Part 1 - Ep #95
Welcome to episode 95 of the One for the Money podcast! In this episode, we take on one of the most misunderstood areas of retirement planning: Social Security. Despite being around for 90 years, myths and misinformation still lead people to make costly mistakes—sometimes losing hundreds of thousands of dollars in lifetime benefits.
This is Part 1 of our Social Security Myth Busters series, where we’ll tackle two of the most common myths about claiming benefits. In addition, the Tips, Tricks, & Strategies segment covers an often-overlooked opportunity with spousal and ex-spousal benefits.
In This Episode, You’ll Learn:
Why Social Security is such a critical piece of retirement income
The true costs of claiming early at age 62 versus waiting until full retirement age or age 70
Why the fear of Social Security “running out” is misleading
The most likely fixes to secure the program’s long-term future
A strategy for spousal and ex-spousal benefits that can add unexpected value
Myth #1: You should take Social Security at 62 because it’s available.
Claiming early reduces benefits by about 30% for life.
Waiting until 67—or even better, 70—can increase lifetime benefits dramatically.
Delaying acts like a guaranteed 6–8% return per year, something most investors can’t match consistently.
Early filing penalties apply if you’re still working.
Myth #2: Social Security is going to run out.
While the trust fund is projected to deplete by 2034, payroll taxes will still fund about 80% of benefits.
Likely adjustments—raising the income cap, modest tax increases, or raising the retirement age—are far more probable than eliminating benefits.
We’ve faced this before, and reforms extended the program by decades. History suggests the same will happen again.
Tips, Tricks & Strategies: The Ex-Files
Divorced after a marriage that lasted 10 years or more? You may qualify for ex-spousal benefits—up to 50% of your former spouse’s benefit, or your own, whichever is greater. Your ex won’t be notified, and their benefits won’t be reduced. With the right documentation, this strategy can meaningfully improve your retirement income.
Key TAKEAWAYS
Claiming Social Security early isn’t just a smaller check for a few years—it’s smaller for life.
Delaying benefits is the closest thing to a guaranteed return most retirees will ever see.
The idea that Social Security will ‘run out’ is a myth. Adjustments will be made, just as they have in the past.
Sometimes, the best retirement strategy from a marriage comes long after it ends.
Planning Your Next Steps
If you’re unsure about when to claim Social Security, don’t guess—or rely on casual advice. At Better Planning, Better Life, we help you make the right decision in the context of your entire financial plan. Schedule a free consultation with us today.
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