With so many rules and choices involved, it’s easy to feel overwhelmed or intimidated by Social Security. As a key source of retirement income, this decision deserves careful consideration, which is why it’s important to get the right advice.

Join Joel Johnson, CFP® on this week’s Retire Wiser with NBC Connecticut as he dispels some of the most common Social Security myths and brings clarity to this crucial retirement decision.

Myth #1: Social Security Covers All Your Income

While Social Security remains a valuable component of retirement planning, it should not be viewed in isolation. A comprehensive retirement income strategy requires multiple sources working together to support your lifestyle.

As pensions have become increasingly rare over the past 30 years, individuals have taken on more responsibility for funding their own retirement. For most retirees today, Social Security alone isn’t enough to meet their financial needs.

Myth #2: Benefits Are Tax-Free

There’s been a lot of discussion recently about the taxation of Social Security benefits. However, the rules currently remain unchanged: your benefits may be taxable if your income exceeds certain thresholds.

Depending on your total income, anywhere from 0% to 85% of your Social Security benefits could be subject to federal income tax. Additionally, some states — including Connecticut — also tax Social Security benefits.

Myth #3: Working Permanently Reduces Your Benefits

Collecting Social Security before your full retirement age can lead to a temporary reduction in benefits. In 2025, you can earn up to $23,400 without any impact on your benefits. If your earnings exceed that amount, Social Security will withhold $1 in benefits for every $2 earned over the limit.

However, that withheld amount is not lost; rather deferred. Once you reach full retirement age, your monthly benefit will be readjusted to account for the previously withheld payments.

Getting This Decision Right

When choosing the right time to claim Social Security, it’s important not only to consider your employment status, but also your health, longevity, marital status, savings, and other income. Working with a financial professional can help you develop a claiming strategy that fits within your overall financial plan.