If you’ve ever lost sleep wondering if Social Security will be enough when you retire, you’re not alone. Many folks over 50 share that same knot-in-the-stomach feeling when considering living on a fixed income. Suze Orman, personal finance expert and straight shooter, has made it her mission to calm that fear. And believe it or not, the facts are more comforting than expected.
You don’t need to be a financial wizard to understand Social Security. But you need some straight talk without the jargon and panic. That’s where these ten truths come in. They’ve helped millions feel better prepared and more in control. Let’s walk through them one by one, coffee in hand.
You Can Fix Filing Mistakes
Claimed too early? Didn’t understand your options? You can withdraw your application within 12 months and refile it later. It’s a one-time do-over, and Suze urges people to consider it if they rush their decision. Just be prepared to repay what you have already received. The SSA allows this, but only once, so consider the implications.
Social Security Supports More Than Just Retirees
Retirement gets all the attention, but Social Security does more. It helps if you become disabled or if your family loses a breadwinner. Kids of deceased workers can also get support. Suze calls it a lifeline that many families overlook. It’s there when life takes a hard turn.
You Won’t Run Out of Social Security
Many Americans worry that Social Security will vanish when they need it. Suze Orman is clear: “Social Security is not going bankrupt.” While the trust fund may face cuts if Congress does nothing, payroll taxes will still cover most benefits. According to the Social Security Administration, even in 2035, about 83% of benefits will still be payable. That’s far from zero.
Waiting Pays More
If you can wait past age 62 to start claiming benefits, your monthly check gets bigger. Suze always recommends waiting until full retirement age or, if possible, until 70. Why? Benefits increase about 8% for each year you delay after full retirement age. That’s a guaranteed return – something you don’t often find.
Social Security Is Adjusted for Inflation
Are you worried your benefit won’t keep up with inflation? Don’t be. Social Security includes cost-of-living adjustments (COLAs) almost every year. In 2023, the COLA was 8.7%, the largest since 1981. These boosts help your monthly payment stretch further, especially when grocery or gas prices spike.
You Can Work and Still Get Benefits
Plenty of people think if they earn money, their benefits vanish. Not true. If you start Social Security early and earn over the limit ($23,400 in 2025), your benefits may be reduced temporarily. But once you reach full retirement age, there’s no earnings limit. Plus, any benefits withheld can be recalculated later, so you’re not losing out forever.
Spousal Benefits Are Real and Helpful
If your spouse earned more, you might be eligible for up to 50% of their benefit even if you never worked a day outside the home. Suze often reminds her listeners that this can be a game-changer for women, especially those who have raised families, rather than climbing the corporate ladder. According to the National Archives, 97% of older Americans receive or will receive Social Security.
You May Pay Taxes on Your Benefits
Yes, Uncle Sam might still want a slice. If you have other income, up to 85% of your benefits could be taxed. It’s a rude surprise if you’re not ready for it. Suze recommends reviewing your total retirement income and adjusting withdrawals to avoid ending up in a higher tax bracket than expected.
Divorced? You Still May Qualify for Benefits
Divorced but were married for at least ten years? You might still be able to claim benefits based on your ex’s work history. You must be unmarried and over 62. You don’t even need to talk to your ex. And no, it doesn’t affect their benefits, either. According to the AARP, nearly 4 million people receive spousal or survivor benefits; some are divorced.
Social Security Won’t Cover Everything
Social Security shouldn’t be your entire retirement plan. The average monthly benefit in 2024 is around $1,907. That’s not enough for a lifestyle; it’s a starting point. According to Yahoo Finance, Social Security lifts over 22 million Americans out of poverty but won’t cover your travel plans or rising healthcare costs. Suze encourages building a “bridge account” to cover expenses until you start drawing down on other retirement savings.
Disclaimer: The Finance Key does not provide and does not intend to provide financial, investment, tax, or legal advice. The information contained in this article is for informational and educational purposes only. This list is solely the author’s opinion based on research and publicly available information. The inclusion of links to third-party content is not an endorsement by The Finance Key of such content or services. Please do your due diligence and use your discretion.
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