Social Security: the basics every worker should know

Social Security is a federal program that provides retirement income to people who've worked and paid into the system. The amount you get depends on your highest 35 years of earnings and the age you start claiming.

When you can claim

• Age 62: earliest you can claim, but with permanently reduced benefits
• Full Retirement Age (66-67 depending on birth year): you get 100% of your calculated benefit
• Age 70: your benefit grows roughly 8% per year for each year you delay past Full Retirement Age

Claiming early is expensive

Claiming at 62 instead of waiting to your Full Retirement Age permanently cuts your benefit by 25-30%. Claiming at 70 instead of 62 can give you over 75% more per month for the rest of your life. For most people in good health, waiting is the higher-expected-value choice.

Don't count on it for everything

Average Social Security benefit in 2025 was roughly $1,900/month. That's a meaningful supplement, not a comfortable retirement on its own. Personal savings still matter.

Will it still exist?

The trust fund is projected to face shortfalls in the 2030s without legislative action. Most likely outcomes are some combination of higher payroll taxes, raised retirement age, or modest benefit reductions, not the program disappearing. Plan as though you'll get something, but not the maximum.

What this lesson is NOT

This is not claiming advice or a prediction of your benefit. The right age to claim depends on your health, your savings, your spouse, and your other income, none of which a general lesson can weigh for you. Benefit formulas and full retirement age are set by law and can change. Check your own record at ssa.gov and, for a decision this big, talk to a fee-only planner.