DayCents

Social Security

Social Security is the federal program that pays monthly retirement (and disability and survivor) benefits, funded by the payroll taxes you and your employer pay throughout your career. For a middle earner it replaces roughly 30–40% of pre-retirement income.

You can claim as early as 62 at a permanently reduced benefit, at full retirement age (67 for those born in 1960 or later), or delay to 70 for about 8% more per year. Because it's a lifelong, inflation-adjusted income, delaying often pays off for those who can.