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Social Security: Myth and Fact

By: Barbara Treadwell

Myth: Social Security will provide most of the income needed in retirement.
Fact: Social Security will likely provide a smaller portion of retirement than you expect.
Analysis: With the future of Social Security uncertain, it’s important to save as much for retirement as possible. Do so by investing in tax-deferred plans such as IRAs, 401(k)s or stocks, bonds and mutual funds.

Myth: Social Security is only a retirement program.
Fact: Social Security also offers disability and survivor benefits.
Analysis: As opposed to a retirement program, you and your family, including spouse, children or dependent parents, could receive benefits in the event of disability or death.

Myth: If you earn money after retirement, you lose your Social Security benefit.
Fact: Money earned after retirement will only affect your benefit if you’re under full retirement age.
Analysis: You will lose a percentage of your benefit if you have income and are under full retirement age. That percentage depends on the amount of income and your age. Contact the Social Security Administration to learn more about your full retirement age.

Myth: Social Security benefits are not taxable.
Fact: If you have other income, you may have to pay taxes on your Social Security benefits.
Analysis: Up to 85 percent of your benefit can be taxable depending on other income and your filing status.

For specific information about your benefits, be sure to read your Social Security Statement, which you should receive yearly from the Social Security Administration. You can visit the SSA’s website, www.socialsecurity.gov or call (800) 772-1213.

With offices in New York and Savannah, Barbara Treadwell has more than 20 years of experience in the financial arena. A certified financial planner, Treadwell embraces the LEAP Systems principals of coordinating and integrating assets for improved rates of return, better protection against the eroders of wealth and tax savings.

For more information, visit
www.treadwellassociates.com or call (800) 695-6007.