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.
Claiming at 62 permanently reduces the benefit; waiting past full retirement age — 67 for anyone born in 1960 or later — raises it by roughly 8% a year until 70. That increase is guaranteed and inflation-adjusted, which no investment offers, so delaying is effectively the cheapest longevity insurance available. Three things are commonly missed. The benefit is calculated from your highest 35 years of earnings, so years with no earnings enter the average as zeros. A spouse may claim on your record, and delaying can raise a survivor benefit for the rest of their life. And benefits can be partly taxable depending on other income, which is one reason retirees convert traditional balances to Roth beforehand.
Put it to work
Retirement Calculator
Project your retirement savings: what your balance could reach by retirement age and the monthly income it could sustainably provide.
Take-Home Pay Calculator
See your actual paycheck after federal tax, Social Security, Medicare, 401(k), health premiums, and state tax — per paycheck and per year (2026 figures).