Social Safety touches the lives of practically all American retirees. But, many individuals misunderstand even the essential ideas behind this authorities program.
For the Nationwide Retirement Institute’s newest annual Social Security Survey, simply over 1,800 American adults have been requested about their attitudes and data concerning Social Safety.
As a part of the survey, contributors have been requested to reply 15 true-or-false questions on Social Safety. On common, respondents answered six of the 15 questions appropriately.
And there have been seven questions that lower than half of respondents bought proper. They’re as follows.
Social Safety advantages are tax-free
True or false? False
Respondents who answered appropriately: 49%
Roughly 40% of people that get Social Safety advantages pay taxes on them, in accordance with the Social Security Administration (SSA).
Whether or not you owe taxes in your advantages is dependent upon what the SSA calls your “mixed revenue.” It’s outlined because the sum of:
In case your mixed revenue is between $25,000 and $34,000, you could owe revenue taxes on as much as 50% of your Social Safety advantages. And for those who earn greater than that, as much as 85% of your advantages may very well be topic to taxes.
You will have choices to decrease and even keep away from a tax invoice, although. Study extra in “A Surprising Number of Seniors Owe Taxes on Social Security. Here Are 7 Ways to Avoid Paying.”
If you’re divorced, you could be eligible for Social Safety advantages primarily based in your ex-spouse’s report
True or false? True
Respondents who answered appropriately: 48%
As we lined in “8 Social Security Benefits You May Be Overlooking,” you could be entitled to spousal advantages even for those who’re divorced. You want to meet the next situations, although:
- Your ex-spouse is entitled to obtain Social Safety advantages.
- You and your ex-spouse have been married not less than 10 years.
- You’re presently single.
- You’re not less than age 62.
- The Social Safety profit that you just’re entitled to is lower than the profit you’d obtain primarily based in your ex-spouse’s work.
When you declare spousal advantages after a divorce, it doesn’t have an effect on your ex-spouse’s advantages or the advantages of their present partner, ought to they remarry.
If I don’t work not less than 35 years, my Social Safety profit can be lowered
True or false? True
Respondents who answered appropriately: 42%
When calculating your benefit, the Social Safety Administration seems at each your highest 35 years of earnings and the age you file to obtain advantages.
In case you have lower than 35 years of earnings, you’ll obtain a “zero” for annually with out earnings. It will scale back the scale of your profit.
It’s a great cause to maintain up together with your earnings report too, to make it possible for it’s correct, as we lined in “7 Social Security Blunders That Can Ruin Your Retirement.”
Any individual who makes $200,000 pays as a lot in Social Safety taxes as millionaires
True or false? True
Respondents who answered appropriately: 37%
There’s a cap on the quantity of earnings which can be topic to Social Safety taxes annually.
In 2026, the cap — generally known as a “taxable maximum” — has been set at $184,500. Earnings above this quantity should not topic to additional Social Safety taxes. Meaning of us incomes massive quantities of cash don’t pay any extra in Social Safety taxes than those that make $184,500.
Those that earn wages equal to or bigger than $184,500 will contribute $11,439 to this system in 2026, with the employee’s employer contributing the identical quantity.
When you’re self-employed, you pay a tax charge of 12.4% because you do not need an employer to share the burden.
When you declare Social Safety early, any spousal advantages you might be eligible for can be lowered
True or false? True
Respondents who answered appropriately: 37%
You could possibly obtain Social Safety benefits primarily based in your partner’s work historical past, even for those who by no means labored. You possibly can declare these advantages as early as age 62 in case your partner is already receiving funds.
However be aware that claiming early will completely scale back the profit quantity you obtain. You possibly can decide how a lot you’ll obtain with the SSA’s early retirement calculator.
Social Safety shouldn’t be protected in opposition to inflation
True or false? False
Respondents who answered appropriately: 37%
Social Safety funds are, in actual fact, protected in opposition to inflation due to annual cost-of-living changes.
Often known as COLAs, these annual bumps in advantages are tied to the Client Worth Index for City Wage Earners and Clerical Employees, which is among the federal authorities’s gauges of inflation. In 2026, Social Safety beneficiaries obtained a 3.2% increase in advantages.
You possibly can undo a claiming resolution throughout the first 12 months
True or false? True
Respondents who answered appropriately: 34%
You possibly can cancel your software for Social Safety inside 12 months for those who change your thoughts. This is named a withdrawal, and also you’re allowed to do it as soon as in your lifetime.
It can require you to pay again any advantages obtained, however it could be worthwhile for those who claimed early however then determined you needed to attend till your full retirement age or past to beef up your month-to-month funds.
See how month-to-month checks examine throughout retirees of various ages in “Here’s How Much Social Security Pays American Retirees at Every Age.”
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