Social Security.
In plain English
Social Security is a federal insurance program that replaces part of your income when you retire, become disabled, or die and leave dependents. Workers and employers each pay a payroll tax on wages, and those taxes fund benefits for today's recipients. Your future benefit is based on your highest-earning years and the age you claim, which can range from 62 to 70; claiming later means a larger monthly check. For most retirees it is a foundation of income, not the whole plan.
01Why it matters
Social Security is the income floor under most retirements, and the age you claim can change your monthly benefit by a large margin for the rest of your life.
02The math, step by step
Someone entitled to 2,000 dollars a month at full retirement age would get roughly 1,400 dollars by claiming early at 62, or about 2,480 dollars by waiting until 70.
03What this is NOT
Social Security is NOT a savings account with your name on it. The taxes you pay fund current retirees; your future benefit is a formula based on your earnings history, not a balance you own.
04Receipts
Every figure on this page is sourced to a primary document. Tap to open the original.
Plain-English answers from our glossary. Receipts included. Never advice.
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