![\"businessman](\"https:\/\/www.europesays.com\/ie\/wp-content\/uploads\/2025\/08\/2-retire-working-iStock-510463050-1.jpg\")
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GOBankingRates’ editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services – our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines<\/a> and our products and services review methodology<\/a>.<\/p>\n 20 Years<\/strong> Trusted by<\/strong> Many baby boomers base their Social Security<\/a> strategies on outdated information or emotional fears rather than facts, according to Louis Green, who worked at Deutsche Bank, UBS and PNC and is now a CFA and CFP with Savvy Advisors<\/a>.<\/p>\n \u201cThere are several strategies to maximize your benefits,\u201d Green explained. But first, people need to understand what they\u2019re getting wrong about the program. Here are the five biggest misconceptions Green encounters with baby boomer clients<\/a>.<\/p>\n Claiming as Early as Possible To Make Sure They Get Something<\/p>\n Many baby boomers rush to file for Social Security at age 62, thinking they should grab benefits while they can. Green said this approach often backfires.<\/p>\n \u201cThink carefully before deciding to file for Social Security benefits as soon as possible,\u201d he advised. \u201cWhile you can claim retirement benefits as early as age 62, you won\u2019t receive 100% of your benefit amount.\u201d<\/p>\n The numbers tell the story. For people born in 1960 or later, full retirement age is 67. Filing at 62 reduces benefits by about 30% compared to waiting until full retirement age<\/a>. Spousal benefits get hit even harder, with reductions of about 35%.<\/p>\n Green recommended considering your income needs and health situation before making the early filing decision. The immediate cash might feel good, but the long-term cost can be substantial.<\/p>\n Worrying About Social Security Completely Running Out<\/p>\n Fear about Social Security\u2019s future leads many baby boomers to make hasty claiming decisions. Green said this emotional response ignores the actual facts about the program\u2019s funding.<\/p>\n \u201cAvoid making emotional decisions about when to file<\/a> based solely on Social Security\u2019s funding status,\u201d he said.<\/p>\n The reality is more nuanced than complete collapse. According to the Social Security Administration<\/a>, combined trust fund reserves<\/a> of Old-Age and Survivors Insurance and Disability Insurance are projected to become depleted in 2034 if Congress doesn\u2019t act. But even then, there would still be sufficient income to pay 81% of scheduled benefits.<\/p>\n \u201cSocial Security may see changes down the road, but it\u2019s not wise to plan your retirement as if the program will disappear entirely,\u201d Green shared.<\/p>\n The program is funded primarily by dedicated payroll taxes, which means it has a reliable income source even if the trust fund reserves run low.<\/p>\n Assuming It Doesn\u2019t Matter When You Claim<\/p>\n Some baby boomers believe the timing of Social Security claims doesn\u2019t matter because the total lifetime benefits are roughly the same regardless. Green said this thinking misses important nuances.<\/p>\n \u201cYour benefits are based on your average indexed monthly earnings and whether you file before or after your FRA,\u201d he explained.<\/p>\n For people born in 1943 or later, delaying benefits past full retirement age increases monthly benefits by 8% for each year you wait, up to age 70. This can majorly boost lifetime income, especially for people who live well beyond their break-even age.<\/p>\n Green recommended using the Social Security Administration\u2019s online calculator to estimate benefits at different claiming ages. The tool helps people see how much the timing decision actually matters for their specific situation.<\/p>\n \u201cBefore deciding when to claim, review your financial needs, health and longevity expectations,\u201d he advised.<\/p>\n Assuming You Can\u2019t Work and Collect Social Security at the Same Time<\/p>\n![\"\"](\"https:\/\/cdn.gobankingrates.com\/wp-content\/uploads\/2023\/11\/icon-20.svg?webp=1&quality=75\"){kind=icon}
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