9 Commonly Believed Myths about Social Security

funded accountIf you’re coming up to retirement age, or perhaps unfortunately having to cope with an unexpected disability you are likely eyeing social security with curiosity. It seems the internet is plagued with “facts” or, as some of us like to call them, misleading myths. In a day when you can simply log into the social security administration website (www.ssa.gov) to answer all your questions, we still find ourselves seeing what 20-year-old Facebook Jimmy has to say about the governments most diabolical plan for cheating its free-spending nation out of their rightfully due money; because, of course, we will all save enough for retirement.

Social Security is one of the most misunderstood benefits the government provides. Much of this is due, in part, to the very few, but widely distributed true accounts of mistakes and accidents, or the failure of recipients to properly follow directions. However, much of the lack of understanding comes from those disillusioned with the amount of false internet statements touted by conspiracy theorists and those compelled to “fix the unjust system.”

Wherever your information comes from, take a comforting inhale as you read these 9 common myths about social security, putting to rest your concerns.

1) Social Security has a funded account with your name

I’m sorry to say there is no special account with your name on it when it comes to social security. All contributions you make during your working life are almost immediately paid out to current social security beneficiaries.

When you are eligible for social security you will reap the benefits from future tax payers. Basically, all working generations are paying for future generations. If you think this system isn’t fair, look at other commonly run systems—you know, like a family. Who takes care of you when you are too old to take care of yourself? That’s right, the workers in the family. And when those workers are too old to take care of their self? That’s right, it’s the working class again.

As long as we have taxpayers, you should be covered under social security. The one caveat is how we manage the number of taxpayers VS non-taxpayers (Typically under 18, and over 70). A highly disproportionate number could affect a small percentage of your benefits. Although, don’t worry too much, while we are living a little longer, we are working (and paying taxes) much longer in life.