Jerry Giovinazzo, a veteran sales and retirement planning professional, serves as regional vice president of sales for John Hancock Retirement Plan Services in New York City. With more than 30 years of experience in financial services, Mr. Giovinazzo has developed a reputation for strategic growth, partnership development, and advisor education. His leadership has expanded John Hancock’s regional distribution to over $240 million in managed assets and earned him recognition on NAPA’s Top 100 DC Wholesalers list for multiple consecutive years. Drawing on his extensive background in benefits consulting and retirement plan design, Jerry Giovinazzo helps business owners and employees understand long-term financial strategies and key components of retirement readiness. In this article, he explores common myths surrounding Social Security and the importance of understanding how the system truly works for today’s and tomorrow’s retirees.
Common Myths Surrounding Social Security
In 2025 Social Security reached age 90, a major milestone for a program that has provided a lifeline to millions since its inception at the height of the Great Depression. As explored in a feature in Plan Consultant (an American Retirement Association (ARA) publication), many myths surround the program. First and foremost is the one that the original aim of Social Security was one of providing substantial security to ordinary people throughout retirement.
In his January 17, 1935 address to Congress inaugurating Social Security, President Franklin Roosevelt described the program as aiming to safeguard Americans against “the loss of a job… and poverty-ridden old age.” This reflects the fact that the average life expectancy for men was 62.1 years and for women 65.4 years in the 1930s. Those who retired prior to age 65 could not collect benefits, and some 40 percent of the population didn’t live long enough to access any money from the program in its early years. Men who did reach 65 received benefits an average of 12.7 years, with this increasing to 14.7 years for women. In addition, the average benefit of $22 a month was only 20 percent of the median American income of the era, $102.
This made Social Security far less of a substantial retirement fund for ordinary Americans than the program we know today. And yet, in the midst of widespread economic turmoil it had an important role in providing a beacon of hope and stability to millions with nothing at all.
Another common myth, going strong for decades, is that those who are currently contributing as young workers will see Social Security funds dry up by the time they retire. While benefits could potentially be reduced if underfunding persists, they will not be eliminated. The Social Security Trustees project that revenue, coming from sources such as benefit taxation and worker and employer contributions, currently meets 81 percent of projected needs over the next decade. It forecasts that full payment of scheduled benefits is secure through 2033.
Lack of revenue entering the system will start becoming an issue in 2035, as fund reserves become depleted, but incoming funds will still cover 83 percent of program costs. In addition, Congress would likely take action by borrowing if a major funding issue arises. This reflects Social Security’s status as a political “third rail” that both parties rely on to maintain voter support.
Another myth concerning Social Security is that it’s better either to start receiving benefits as early as possible or delay as late as possible. Those in the former camp have a “get it while you can” mentality, as one never knows how long one will live, while those in the latter camp see the ultimate benefits of receiving a larger check as outweighing the lifespan risks. In reality, choosing any time between 62 and 67 to start receiving benefits is often ideal. During this window, the break even point for what one has put into the system and what one receives from it is 12.7 years on average. Those in good health who expect to live into their 80s might wait later, while those with health concerns might opt to start receiving benefits the moment they are eligible to do so.
The ARA director of regulatory affairs recommends that employers and plan sponsors proactively engage with younger workers, making annual education meetings mandatory for any employee who participates in company sponsored 401(k) plans. This helps focus workers on their current savings and investment levels, and have realistic expectations of what lies ahead. The ARA director notes that augmenting 401(k) payments with self-saving is always preferable to simply funneling money into sponsored programs and expecting these will cover all one’s needs later in life.
About Jerry Giovinazzo
Jerry Giovinazzo is the regional vice president of sales for John Hancock Retirement Plan Services, where he leads advisor partnerships and territory growth across New York. With over three decades of experience in financial services, he has worked in benefits consulting, advertising, and retirement planning. Mr. Giovinazzo has been named multiple times to NAPA’s Top 100 DC Wholesalers list and manages one of the firm’s top-performing markets. Outside of his professional life, he enjoys fitness, woodworking, and riding motorcycles.
