ORLANDO, Fla. (Ivanhoe Newswire) Millions of retired Americans depend on social security. In fact, nearly half of married couples aged 65 and older receive 50 percent or more of their income from social security.
But there are a lot of myths when it comes to this government program.
You know your hard-earned money goes towards it, but there’s a lot Americans don’t know when it comes to social security benefits.
One popular myth: social security won’t be there for young Americans. While experts project that the social security trust fund will be depleted by 2033, there will still be taxpayers paying into the system.
That means younger Americans should get between 75 and 80 percent of the benefits according to the social security administration.
Myth number two: your benefits are based on your last ten years of income. The truth is your payment is based on your highest 35 years of inflation-adjusted income.
Another fallacy: some people believe you won’t get social security if you didn’t work outside the home. You can get benefits based on the earnings of your spouse or ex-spouse if you were married for at least ten years.
And our last myth: what you put into social security is what goes into your account. The truth is that your contributions are immediately paid out to current beneficiaries. Future taxpayers will then fund your benefits when you retire.
Another popular myth is that social security is designed to replace most of your pre-retirement income. According to the social security administration, retirement benefits for people with average incomes will likely replace only about 40 percent of their pre-retirement earnings.