Unfortunately, the rules are complicated – causing millions of people to make choices that cost them hundreds of thousands of dollars.

Don’t fall for these five Social Security myths.

Myth 1: You Should Start Your Benefits at Age 62

You can start to receive Social Security retirement benefits at age 62, but you don’t have to. Not even if you have stopped working.

Starting at 62 is the most common mistake retirees make. Full retirement age is 67 for anyone born in 1960 or later. Claiming at 62 gets you just 70% of what you’d get at age 67, and just 56% of what you’d get if you wait until age 70.

So why don’t people wait? Two reasons. First, many people don’t realize they’re allowed to wait. Second, and more importantly, human nature works against us. We want our money now! – even if it’s less than we’d get by waiting. 

The fact is that if you think you’ll live more than 13 years after starting benefits, you should delay starting them to age 70. Thirteen years is the crossover point, so living to 85 or 95 can put hundreds of thousands of more dollars in your pocket over the course of your retirement.

If you’re healthy and can afford to delay the start of benefits, then delay!

Myth 2: You Need to Start Now to Get the Cost-of-Living Increase

People rush to claim benefits so they don’t miss the annual cost-of-living adjustment. Don’t. Your future benefits are adjusted for inflation whenever you start collecting them.

Myth 3: Social Security Benefits Aren’t Taxed

They are, unless your income is very low. If you’re single with income of $25,000 to $34,000, or married with income of $32,000 to $44,000, up to 50% of your benefits are taxable. Earn more than that and up to 85% of your benefits are taxable.

Other decisions affect this, too. Converting a traditional IRA to a Roth IRA adds to your income, which can raise the taxes on your Social Security benefits and your Medicare premiums.

Myth 4: Your Local Social Security Office Will Help You Get the Maximum Benefit

The folks who work at the local Social Security Administration office are nice people. They will tell you the rules. But they won’t – aren’t permitted to – tell you which strategy will get you the most money.

The right strategy matters – and it depends not just on your age, but your marital status, your spouse’s age and earnings, your dependents, your health, your other income and your taxes. If you’re widowed or divorced, those factors can matter more than your age.

That’s why you need a financial advisor. They use specialized Social Security planning software. If your advisor isn’t talking with you about Social Security, find a new advisor.

Myth 5: Social Security Won’t Be There When You Retire

It will. But it will change.

In 1940, when monthly benefits began, 159 workers paid into the system for every person getting money from it. Today, there are fewer than three workers for each retiree. The result: Payroll taxes are no longer sufficient to pay all the benefits that are owed to all the retirees. To make up for the shortfall, the Social Security Administration has been tapping into the Social Security Trust Fund. But that fund will be depleted in 2032, just six short years from now.

Unless Congress acts, benefits will be cut for every retiree at that time. The only way to prevent this is for Congress to reduce/delay benefits or increase the Social Security payroll tax.  So, plan for smaller benefits, higher taxes or both.

And remember: Social Security is only one part of your retirement plan. Your retirement security depends on how you contribute to your retirement accounts, manage that money and withdraw it. Social Security fits into that plan. It doesn’t replace it.

Learn more: See how Social Security fits into PFI’s three-step retirement planning process.