Americans know about Social Security and how it works, but do they really know enough?
A recent survey found that most people between the ages of 55-61 believe some myths about Social Security that should be corrected, according to CNBC in "The three biggest myths about how Social Security works."
The myths include:
- Many people think that when they become eligible for Social Security, the government will know and automatically start sending them a monthly check. That is not true. You need to apply for Social Security and you need to do so, three months before you plan to receive it.
- Another common misconception is the retirement age to receive full benefits. It depends on when you were born.
- People also believe that if an ex-spouse claims Social Security benefits under their work history, that it will decrease the amount of their benefits. This is also a myth. An ex-spouse's claim will not result in changes to any benefits that you will receive.
Reference: CNBC (April 25, 2017) "The three biggest myths about how Social Security works."