Many people believe the government has "raided" or "stolen" money from the Social Security Trust Fund to pay for other programs.

Reality:

The Social Security Trust Fund has never been "put into the general fund of the government." The Trust Fund has always worked the same way since its creation in 1939.

While the accounting treatment changed in 1969 (when it was included in the "unified budget"), this was purely an accounting change and had no effect on how the Trust Fund actually operates.

By law, Social Security funds can only be used to pay benefits and program administrative costs.

Source: Social Security Administration - Internet Myths

A common fear is that Social Security is going broke and won't be there for future generations.

Reality:

As long as workers and employers pay payroll taxes, Social Security will not run out of money. It's a pay-as-you-go system where revenue from FICA and SECA taxes largely cover the benefits going out.

According to the 2024 Trustees Report, even if the Trust Fund reserves are depleted in 2035, Social Security would still be able to pay 83% of scheduled benefits from ongoing tax revenue.

Congress can take steps to address the shortfall, as it did in 1983 when the program faced similar challenges.

Source: Social Security Administration - 2024 Trustees Report Summary

Some believe that undocumented immigrants can receive Social Security benefits, draining resources from the system.

Reality:

To receive Social Security benefits, a person must be a U.S. citizen, a lawfully present immigrant with work authorization, or a noncitizen who meets specific qualified alien categories.

Undocumented immigrants are not eligible for Social Security retirement, disability, or survivors benefits.

While some may pay into the system using incorrect Social Security numbers, they cannot legally collect benefits.

Source: Social Security Administration - Benefits for Noncitizens

A widespread belief is that the Social Security Administration automatically denies all first-time disability applications.

Reality:

While many disability claims are denied initially, there is no policy or practice of automatic denial for first-time applicants.

The Social Security Administration evaluates each disability claim through a thorough, multi-step process based on medical evidence and established criteria.

Many claims are approved on the first application. Approval rates vary based on the nature of the disability, medical documentation, and other factors.

Source: Social Security Administration - Disability Determination Process

Some claim that the Social Security Administration pays benefits to millions of deceased individuals.

Reality:

The Social Security Administration has robust systems to identify when beneficiaries die and stop payments.

They receive about 2.5 million death reports annually from various sources, including family members, funeral homes, financial institutions, postal authorities, and state vital statistics agencies.

While there have been rare instances of payments continuing after death, these represent a tiny fraction of all beneficiaries and are typically recovered once discovered.

Source: Social Security Administration - Death Information

When Social Security numbers are found on the dark web, some believe they were stolen from the Social Security Administration's databases.

Reality:

When Social Security numbers are found on the dark web, they typically come from data breaches at private companies, healthcare providers, financial institutions, or other organizations that collect this information—not from the Social Security Administration itself.

The SSA maintains strict security protocols to protect personal information in its systems.

Most identity theft occurs through private sector breaches, phishing scams, or theft of physical documents.

Source: Social Security Administration - Identity Theft and Your Social Security Number

Many people believe Social Security works like a personal retirement account where you get back what you paid in plus interest.

Reality:

Social Security is not a personal retirement account or investment. It's a social insurance program where current workers' taxes pay for current beneficiaries' benefits.

Your benefit amount is based on your lifetime earnings record, not on the amount you contributed.

The program is designed to provide a foundation of retirement income, not to be the sole source of retirement funds.

Source: Social Security Administration - Understanding the Benefits

Some believe that Medicare coverage is completely free, especially if you've paid into the system.

Reality:

Medicare is not free. While Medicare Part A (hospital insurance) may have no premium for those who have worked and paid Medicare taxes for at least 40 quarters, beneficiaries still pay deductibles and coinsurance.

Medicare Part B (medical insurance) requires a monthly premium ($185 in 2025 for most beneficiaries), plus deductibles and coinsurance.

Parts C and D also have costs that vary by plan.

Source: Medicare.gov - Costs

A common misconception is that Medicare provides comprehensive coverage for all healthcare needs.

Reality:

Medicare does not cover all healthcare services. Notable exclusions include most long-term care (nursing home care), routine dental care, eye exams for glasses, dentures, cosmetic surgery, acupuncture, hearing aids, and exams for fitting hearing aids.

Additionally, even for covered services, beneficiaries typically pay deductibles, coinsurance, or copayments.

Many beneficiaries purchase supplemental insurance to cover these gaps.

Source: Medicare.gov - What Medicare Covers

Some people confuse Medicare and Medicaid or believe they are interchangeable programs.

Reality:

Medicare and Medicaid are distinct government programs:
Medicare is a federal health insurance program primarily for people 65 and older, regardless of income.
‍Medicaid is a joint federal and state program that provides health coverage to people with limited income and resources.

While some people may qualify for both programs (dual eligibles), they serve different populations and have different eligibility requirements.

Source: Medicare.gov - Medicare & Medicaid

Some critics claim that Social Security is essentially a Ponzi scheme, where money from new investors pays off earlier investors until the system inevitably collapses.

Reality:

While Social Security does use current workers' contributions to pay current retirees' benefits, it differs from a Ponzi scheme in several crucial ways:
1. Social Security is transparent and legally mandated, not fraudulent or deceptive.
2. The program's administrators do not take a cut or profit from the system.
3. Social Security offers realistic, modest returns rather than promising unrealistic gains.
4. Unlike a Ponzi scheme, Social Security can be adjusted through legislation to address funding challenges.
5. Social Security has multiple layers of oversight, regular auditing, and transparency.

The program is designed as social insurance to provide basic income security, not as an investment scheme.

Source: PolitiFact - Is Social Security a Ponzi scheme?

Some claim that the Social Security Trust Fund doesn't contain real money, just worthless IOUs or government promises.

Reality:

The Social Security Trust Fund holds special-issue Treasury bonds, which are backed by the full faith and credit of the U.S. government—the same backing that stands behind all U.S. Treasury bonds.

These bonds are real financial assets that earn interest and can be redeemed to pay benefits. They represent the program's legal authority to draw on general revenues when needed.

While it's true that the government has spent the cash received in exchange for these bonds, this is how all Treasury bonds work—whether held by the Trust Fund, foreign governments, or private investors.

The Trust Fund's bonds are not "fake money" any more than Treasury bonds held by other investors are fake.

Source: Social Security Administration - Internet Myths