A U.S. government program providing retirement, disability, and survivor benefits.
Social Security is a federal insurance program funded by payroll taxes (FICA) that provides retirement income, disability benefits, and survivor benefits. Most workers contribute 6.2% of wages (employers match 6.2%) to Social Security (up to a salary cap of $168,600 in 2024). Retirement benefits depend on age and earnings record: waiting until age 70 generates 76% more monthly income than claiming at 62. Social Security replaces roughly 40% of pre-retirement income for average earners; it's designed as a foundation, not sole retirement income. Planning when to claim Social Security is important—should you claim at 62 and get smaller checks sooner, or wait until 70 for larger checks? Married couples have additional considerations: spousal and survivor benefits. Social Security solvency is a concern long-term; current trust fund projections show depletion around 2034.