Social Security Myth #2: You won’t get back all the money you contributed with
Everyone’s situation is different; that’s a fact. What this Social Security myth fails to point out is that if you live a long time, chances are you will be able to collect more than you put into the program.
Due to the number of variables involved and the complexity of claim strategies, the SSA no longer provides a break-even calculator on its website. The federal program is meant to offer a safety net income for the retired, the survivors of deceased insured workers, and the disabled.
The contributions you make during your working years provide:
- Payments to current retirees and other Social Security recipients
- A guaranteed lifetime income when you reach retirement
While the US government does not set aside a special account for you with your FICA contributions (the taxes you and your employer paid for both Social Security and Medicare), one of the most unique features of Social Security is that it provides an inflation-protected guaranteed income stream in your golden years. This basically guarantees you that you won’t outlive your savings.
Even if you reach age 100 or more, you will keep getting an income every month. Additionally, if you pass away before your spouse, they will receive survivor benefits until their death.
Keep reading to discover other Social Security myths!
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