Social Security is often a cornerstone of retirement income, but it's often misunderstood, leading to confusion, worry and poor planning decisions. Here's the truth behind five of the most common misconceptions.

First, it’s not going broke: if no action is taken, benefits could drop around 2032, but policymakers have options to strengthen it.

Second, it won’t replace everything. It covers roughly 40% of your income, so retirement savings are still critical.

Third, claiming early and working won’t permanently reduce benefits; payments are later increased for reductions that occurred before full retirement age. 

Fourth, if an ex-spouse claims benefits based on your earnings record it doesn’t reduce your benefit.

And fifth, benefits are still taxable if your combined income exceeds certain thresholds, though some temporary deductions exist.

The more you understand Social Security, the more control you have over your retirement outcome. Grounding your decisions in facts rather than assumptions can make a meaningful difference in your long-term financial security.

This content was provided by Edward Jones for use by Pamela Malcolm, your Edward Jones financial advisor at 3727 California AVE SW #1D, (206) 489-0035.  Edward Jones and its financial advisors cannot provide tax advice. You should consult your qualified tax professional regarding your situation.

 

Edward Jones-Member SIPC

Pamela G. Malcolm

Financial Advisor – Edward Jones 

📞 (206) 489-0035 (text capable for clients)

📍 3727 California Ave. SW #1D, Seattle, WA 98116

🌐 Website | LinkedIn | Facebook

✅ Understand your priorities – Take a short quiz here!