Social Security: What You Need to Know

Social Security is a major source of income for many retirees. However, it's important to understand how Social Security works and how much you can expect to receive. There are a number of factors that can affect your Social Security benefits, such as your earnings history, your age at retirement, and your marital status.

How Social Security Works

Social Security is a social insurance program that provides retirement, disability, and survivor benefits to eligible Americans. The program is funded by a payroll tax that is paid by both employees and employers.

To be eligible for Social Security retirement benefits, you must have worked in a job covered by Social Security for at least 40 quarters (10 years). The amount of your benefits will depend on your earnings history. The higher your earnings, the higher your benefits will be.

You can start receiving Social Security retirement benefits as early as age 62, but your benefits will be reduced if you start early. You can also delay receiving benefits until age 70, in which case your benefits will be increased.

How Much You Can Expect to Receive

Suppose you were born on Jan. 1, 1960, and had an average annual income of $50,000. As of May 2023, you would get a monthly benefit of about $1386 at age 62,  about $1980 at age 67 (full retirement) or if you wait until you are 70 you would get  about $2,455.

How to Maximize Your Benefits

• Start saving early. The earlier you start saving for retirement, the more time your money has to grow.
• Contribute to a 401(k) or IRA. These accounts offer tax advantages that can help you grow your savings faster.
• Make sure you work in jobs covered by Social Security. The more you earn, the higher your Social Security benefits will be.
• Delay retirement. If you can afford to delay retirement, your benefits will be increased.
• Get married. If you are married, you may be able to increase your benefits by filing a joint claim.

To add a little humor to such a serious post... here are a few dad jokes for ya.

• What do you call a Social Security check that's lost in the mail? A delayed benefit.
• What do you call a Social Security check that's never coming? A retirement dream.
• How do you know you're getting old? When you start looking forward to Social Security.