Social Security is the major source of income for many seniors. In 2026, an average of nearly 71 million Americans per month will receive a Social Security benefit, totaling approximately $1.65 trillion in benefits paid during the year.¹
Social Security is part of the three-legged stool that the Office of Personnel Management (OPM) has created for your retirement. The stool consists of your pension, your Social Security income, and the Thrift Savings Plan (TSP).
Social Security may seem straightforward, but there’s more to it than many federal employees realize. The rules around eligibility, claiming age, earnings, spousal benefits, and taxes can all affect what you receive—and common myths can make an already complex program even harder to navigate. What you don’t know could influence both the timing of your decision and the amount of income you receive in retirement.
Here are six myths about Social Security benefits in retirement:
Myth #1: Social Security benefits won’t be available when I retire.
While discussions about Social Security’s solvency persist, if you’re already in retirement and receiving benefits, it’s unlikely to significantly impact you. For those not retired yet, ongoing monitoring and adjustments with a financial professional can address potential changes.
Myth #2: Social Security will be a major source of retirement income.
Although Social Security serves as supplemental income, relying solely on it is usually insufficient. It’s just one part of your three-legged stool of retirement planning, and a comprehensive strategy, incorporating various income sources, is essential for maintaining your desired lifestyle.
Myth #3: Social Security benefits don’t keep up with inflation.
Social Security payments are designed to adjust for the cost of living. Annual evaluations lead to cost-of-living adjustments (COLAs). For 2026, benefits are set to increase by 2.8%, demonstrating the program’s adaptability to inflation.
Myth #4: You can outlive Social Security.
Social Security continues until your death, with government backing and inflation adjustments. Unlike other income streams, it provides a reliable monthly payment, offering financial security throughout your lifetime.
Myth #5: I should wait as long as possible to claim Social Security benefits.
While delaying Social Security benefits increases monthly payments, it’s not universally beneficial. Factors like health, family life expectancy, and tax considerations should be weighed for your personal situation. Consulting with a financial professional before retirement can help you plan the optimal age for claiming benefits.
Myth #6: Social Security income isn’t subject to taxes.
Despite being a federal program, Social Security income might be taxable if your modified adjusted gross income exceeds specific limits. Up to 85% of benefits can be taxed, affecting approximately 40% of recipients, according to the Social Security Administration.
How can federal employees maximize their Social Security benefits?
One of the keys to maximizing what you get from the program is timing when you begin to claim your benefits. Be sure to watch this webinar recording on “Deciding When to Take Social Security Benefits” in which I distill down these core components of the Social Security program to help you understand when, how, and why to start drawing benefits. In this recording, I also cover the 10 most frequently asked questions that we receive about Social Security. Be sure to watch to get all of your questions answered!
Bottom Line
As you approach retirement, understanding how Social Security fits into the bigger picture is crucial—but unfortunately, myths and misinformation often get in the way. By clearing up these six common misunderstandings, you’re in a better position to make informed decisions that can protect and maximize your retirement income.
Remember, Social Security is just one part of your federal retirement benefits. Coordinating it wisely with your FERS or CSRS pension and TSP can help ensure a more stable financial future. Don’t leave it to guesswork—take the time to understand your options, ask questions, and seek guidance when needed. Your retirement is too important to be built on myths.
Source: ¹Social Security Administration
About Chris Kowalik
Chris Kowalik is a federal retirement expert and frequent speaker to federal employee groups nationwide. In her highly-acclaimed FedImpact Workshops, the FedImpact Podcast, and the FedImpact Webinars, she empowers employees to make confident decisions as they plan for the days when they no longer have to work. Chris’ candid and straightforward nature allows employees to get the answers they need and understand the impact these decisions have on their retirement.
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