Social Security
A U.S. government program providing inflation-adjusted retirement income based on your earnings history.
What does social security mean?
Your benefit is based on your highest 35 years of earnings and the age you claim. Claiming early (from 62) permanently reduces it; delaying to 70 increases it about 8% a year. It replaces roughly 40% of pre-retirement income for an average earner.
Put it to use
Social Security — frequently asked
When should I claim Social Security?
You can claim from 62, but benefits grow about 8% for each year you wait until 70. Claiming early suits those who need income or have shorter life expectancy; delaying maximizes lifetime income for those who can wait.
How is my Social Security benefit calculated?
It is based on your highest 35 years of indexed earnings, run through a formula to produce your benefit at full retirement age. Claiming earlier permanently reduces it; delaying past full retirement age increases it.