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Three Common Social Security Myths Debunked

There are plenty of Social Security Myths that have been birthed over the years gone by. They unintentionally misinform people who are just trying to find the facts.

But it’s actually quite simple to debunk three of the most prevalent Social Security myths. They include the most commonly asked questions, and you’d be surprised at how much misinformation is actually out there.

Myth: Social Security taxes are stored in your name.

Fact: Social Security is actually set-up as a “pay-as-you-go-system” according to NASI. What this means is that people are paying taxes into the program to help pay for the benefits of those who have already retired. A good example is this: The taxes that you are paying into Social Security now are actually paying for your parent’s retirement, whereas the taxes that your children might pay would help fund your retirement.

Myth 2: You will never get what you paid in back from Social Security.

Fact: That’s not actually the case. The Urban Institute conducted a study in 2013 that assessed seven different categories of people who were receiving benefits. What it found was that in every case the people were actually getting more out of it than what they paid into it. This was factoring retired persons over the age of 65 and it was combining Social Security and Medicare benefits.

The study found that a single female that earned $44,800 in 2013 and had tendered $407,000 over a lifetime would actually be repaid $544,000 from Social Security and Medicare benefits. By contrast, a couple that had paid in $816,000 over a lifetime would actually get paid out about $1.03 million.

Myth 3: If you suffer from a life-changing disability it will be very difficult to get benefits.

Fact: Actually, the Social Security program has accounted for this. It’s something that’s built into the program that’s called Compassionate Allowances. What this program does is help streamline the application and approval process for people who are already on Social Security but suffer a sudden, life-changing disability.

The list currently factors in over 200 different medical conditions that can speed up the application process. Basically, it fast-forwards eligible applicants for disability benefits when they meet certain criteria.

 

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