5 Social Security Myths Millennials Need To Stop Believing

Paige CerulliFri, April 10, 2026 at 9:55 AM UTC

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The Social Security program is undoubtedly complicated, and many myths surround how it works and what lies in store for the program in the coming decades.

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GOBankingRates spoke with financial advisors who shared the real facts behind this program and dispelled some of the most common myths that many millennials believe.

Social Security Is Going Bankrupt

There’s a lot of talk about Social Security going bankrupt, and you’ve probably heard that the program won’t be around by the time you’re old enough to start collecting benefits. According to Jeremy Keil, certified financial planner (CFP) and retirement financial advisor at JeremyKeil.com, that’s not true.

While the Social Security Trust Fund is projected to run down to $0 by 2034, Keil explained that the fund represents just 25% of the program’s overall funding, and there will be sufficient funds to pay 75% of projected benefits.

Brian Kuhn, CFP, senior vice president and financial advisor at Wealth Enhancement Group, explained that there will likely be adjustments made to the program, but it’s scheduled to exist for decades.

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You Have To Claim Social Security by Age 62

Keil said you never have to claim Social Security at all. However, he recommended claiming by age 70, because your benefits don’t grow. Once you reach full retirement age (FRA), you can claim back payments for up to six months.

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“If you are over 70.5 and you haven’t filed yet, then you’ve lost some of your benefits that you’ll never get back,” Keil said.

Your Spouse Gets Half of Your Benefits

Many people believe that a spouse gets half of the benefits of the worker. In fact, the spouse’s promised benefit at FRA is half of the worker’s promised benefit at their FRA.

“If the worker took Social Security early, that doesn’t drop your spousal benefit, but if the spouse takes their benefit early, it drops the spousal benefit, perhaps up to 30%,” Keil explained.

You Don’t Have To Pay Taxes on Social Security Benefits

While you do have to pay taxes on Social Security benefits, Kuhn explained that you’ll probably pay less taxes than you anticipate. Your taxes are determined by a formula. The highest 85% of your benefit is taxable, meaning 15% of your Social Security is federally tax-free.

Depending on your total income, all of your Social Security benefit could be tax-free. Additionally, most states don’t tax Social Security benefits, further minimizing what you’ll pay in tax.

Social Security Isn’t a Good Program

Kuhn explained that the biggest myth he hears is that Social Security isn’t a good program.

“Tens of millions of people rely on it for retirement income and it is guaranteed for life, as much as anything can be guaranteed,” he said. “It’s an extremely important retirement planning tool.”

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This article originally appeared on GOBankingRates.com: 5 Social Security Myths Millennials Need To Stop Believing

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Source: “AOL Money”