1 in 5 Americans Are Making a Social Security Mistake That Could Ruin Their Retirement

Core Insights - A significant number of Americans are at risk of making a critical Social Security mistake that could jeopardize their retirement finances [2][4] - Approximately 21% of Americans mistakenly believe that Social Security will be sufficient to fund their retirement, which could lead to financial disaster [4][6] Social Security Misconceptions - The belief that Social Security alone can support retirement is widespread, with 21% of Americans holding this view, which is detrimental as Social Security was not designed to be the sole income source for retirees [4][6] - Many individuals may contribute insufficiently to their retirement accounts, such as 401(k)s and IRAs, due to this misconception, leading to potential financial shortfalls in retirement [6] Retirement Income Sources - The traditional model for retirement income is based on a "three-legged stool" consisting of Social Security, pension income, and personal retirement savings [5][8] - Pensions are becoming increasingly rare in the private sector, making reliance on Social Security and personal savings more critical for future retirees [5] Impact of Early Retirement - Retiring before reaching the full retirement age (FRA) can significantly reduce Social Security benefits, with a potential 30% reduction if benefits are claimed at age 62 instead of the FRA of 67 [9]