Social Security is a federal program that provides retirement income, disability benefits, and survivor benefits to eligible Americans. Retirement benefits are based on your 35 highest-earning years and the age at which you begin claiming. You can claim as early as age 62 (with reduced benefits) or delay until age 70 (with increased benefits of 8% per year of delay past full retirement age). The program is funded through payroll taxes (FICA).
Social Security
Definition
Social Security is a federal program that provides retirement income, disability benefits, and survivor benefits to eligible Americans. Retirement benefits are based on your 35 highest-earning years and the age at which you begin claiming. You can claim as early as age 62 (with reduced benefits) or delay until age 70 (with increased benefits of 8% per year of delay past full retirement age). The program is funded through payroll taxes (FICA).
Example
A worker with average lifetime earnings who claims at full retirement age (67) might receive approximately $2,500 per month. Claiming at 62 would reduce this to about $1,750, while waiting until 70 would increase it to approximately $3,100.
Key Points
- 1Based on your 35 highest-earning years
- 2Full retirement age is 66-67 depending on birth year
- 3Delayed claiming increases benefits by 8% per year (up to age 70)
- 4Funded by FICA payroll taxes (6.2% employee + 6.2% employer)
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