SOCIAL SECURITY MYTHS

Myths were fine for ancient Greece. But they can be harmful to Social Security. These myths not only misinform the public; they can erode support for Social Security, which has been providing Americans with baseline retirement security since 1935. On this page, we’ll help you separate fact from fiction — to keep seniors’ earned benefits strong!

SOME COMMON SOCIAL SECURITY MYTHS – AND WHY THEY AREN’T TRUE

On a piece of old paper with Grecian design on the boarders, there are four cartoon people waiting outside the door to the social security office. The text Myth Undocumented Workers Collect Benefits.

Myth #1: “Undocumented workers are collecting Social Security.”

FACTS: Undocumented workers are legally prohibited from collecting benefits. But they do sometimes pay into the system using fake Social Security numbers. This brings some $13 million in extra revenue into the program every year — improving, not hurting, Social Security’s financial outlook.

On a piece of old paper with Grecian design on the boarders, there is a cartoon person walking. The text Myth Politicians are Stealing from Social Security.

Myth #2: “Politicians are stealing from Social Security!”

FACTS: This myth derives from a misunderstanding of how Social Security works. Extra revenue from workers’ payroll contributions are put into a trust fund that is invested in government bonds. These Treasury notes are repaid with interest, like every other government bond. No one is ‘stealing’ from Social Security.

Myth #3: “Social Security is going broke!”

FACTS: The program’s trustees project that the Social Security trust fund reserves will become depleted in 2035, without action from Congress. At that time, the program still could pay 83% of benefits. The only way Social Security would be “broke” is if we had 100% unemployment and no one was paying into the program.

On a piece of old paper with Grecian design on the boarders, there is a cartoon person standing on top of and shoveling a mound of gold coins and jewels. The text Social Security Contributes to the Federal Debt is to the left of this illistration.

Myth #4: “Social Security contributes to the federal debt.”

FACTS: Social Security is completely self-funded by workers’ payroll contributions. It does not contribute a penny to the federal debt. In fact, Social Security lends the government money by purchasing federal bonds. Social Security is not legally allowed to borrow money or incur debt. The biggest driver of debt is tax cuts for the wealthy & big corporations.

On a piece of old paper with Grecian design on the boarders, there are four cartoon people carrying a royal on a chair. The text Social Security is Unfair to Younger Works is to the left of this.

Myth #5: “Social Security is unfair to younger workers.”

FACTS: This is a falsehood designed to undermine younger adults’ support for Social Security. In truth, Social Security has been working successfully as an inter-generational program for nearly 90 years. Younger workers pay into the system now in exchange for life, disability, and retirement insurance benefits later. And today’s younger adults will need those benefits even more than current seniors do.

On a piece of old paper with Grecian design on the boarders, there are four cartoon people holding up tow other people who in turn are holding a single person holding bags of money. The text Social Security is a Ponzi Scheme is to the left of the illustration.

Myth #6: “Social Security is a Ponzi scheme!”

FACTS: Charles Ponzi was a swindler who promised financial gains and left his investors with nothing. Social Security is exactly the opposite. It has been paying promised benefits for nearly nine decades — and never missed a payment. Any comparisons between Ponzi’s criminal scheme and Social Security are intended to smear the program and undermine public support.

On a piece of old paper with Grecian design on the boarders, there are four cartoon people sitting on a bench listening to a fifth person talking to them. The text Member of Congress Don't Participate in Social Security is to the left of the illustration.

Myth #7: “Members of Congress don’t participate in Social Security.”

FACTS: Before 1983, members of Congress were not required to participate in Social Security. Since then, however, their participation in the program has been mandatory. House members and Senators pay into Social Security and collect benefits like everyone else. This helps your elected representatives to understand the value of Social Security.

Read our CEO’s article in Marketwatch here.