Social Security provides important monthly benefits to millions of retired Americans. Chances are, many of today’s workers are counting on those benefits once they retire.
In a recent AARP survey of Americans 18 and over, 74% said they consider themselves reasonably informed about Social Security. Of those, 58% described themselves as somewhat informed, while 16% said they were well-informed.
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The survey also found that adults 50 and over knew more about Social Security than younger respondents, especially when it came to filing ages. Still, there’s a lot of misinformation floating around.
Here are some of the most common misconceptions — and the facts.
Many don’t know their full retirement age
Full retirement age is when you can collect Social Security without seeing a reduction in benefits.
When asked if 65 is the full retirement age, 38% of respondents said yes, 37% said no and 24% didn’t know.
The truth is, age 65 is when Medicare eligibility generally begins, but full retirement age for Social Security is 67 for anyone born in 1960 or later.
You can claim Social Security as early as age 62, but doing so results in a permanent reduction in benefits.
Many don’t know how spousal benefits work for divorcees
Social Security doesn’t just provide benefits to workers. Spouses can also receive retirement benefits, even if they don’t have an earnings record of their own.
When asked if divorced people can collect spousal benefits based on a former spouse’s work history if they were married for 10 years or more, 44% said yes, 9% said no and 46% said they didn’t know. The answer, however, is yes — divorced people can claim spousal benefits if the marriage lasted at least 10 years.
Divorcees can begin collecting spousal benefits at 62, but filing before full retirement age will reduce the monthly amount. To qualify, they must also have been divorced for at least two years and must not be remarried.
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Most don’t know how the program’s earnings-test limits work
In June 2025, the average monthly Social Security benefit was $2,005.05. That’s enough for many people to live on, so some recipients choose to work while collecting benefits.
In the survey, 40% of respondents said they didn’t know what happens when someone works while collecting Social Security. Another 30% believed that benefits are reduced and never paid back. Only 29% knew the rules are more nuanced.
Once you reach full retirement age, you can earn as much as you like without affecting your benefits. Before that, the earnings test applies, and earning above a certain limit means some of your benefits are withheld.
In 2025, $1 in benefits is withheld per $2 in earned above $23,400. For those reaching full retirement age this year, the threshold is higher: $1 withheld for every $3 earned above $62,160. These limits adjust annually.
The good news: any withheld benefits are not lost. Once you hit full retirement age, your monthly payment should increase to account for what was withheld.
Many don’t know what happens if trust funds run out
There are a lot of rumors that Social Security is running out of money. While that’s not exactly true, its trust funds are on track to be depleted, which has many people worried.
When asked what would happen if the trust funds ran dry, 34% of respondents said benefits wouldn’t be reduced, and 64% believed Social Security would stop paying benefits altogether. Another 47% thought benefits would be cut by at least half.
None of those answers are correct.
According to the latest Social Security Trustees report, the Old-Age and Survivors Insurance (OASI) trust fund is expected to be depleted by 2033. At that point, only 77% of scheduled benefits would be payable.
If OASI and Disability Insurance trust funds are combined, depletion could happen as early as 2024. After that, an estimated 81% of benefits would be paid.
That’s a serious cut, but it’s far from Social Security disappearing entirely — a scenario that is not currently on the table.
It’s also worth noting that Congress has never allowed benefits to be cut in the past. Lawmakers have a number of options to shore up the program before cuts become necessary.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.