Social Security
The US federal retirement, disability, and survivor benefit program, funded by FICA payroll tax and paying out monthly benefits based on lifetime earnings.
Social Security is the US federal pension system, paying monthly retirement benefits to anyone with at least 40 quarters (10 years) of FICA-covered earnings. The benefit amount is calculated from the worker’s highest 35 years of indexed earnings — the Average Indexed Monthly Earnings (AIME) — passed through a progressive formula to produce the Primary Insurance Amount (PIA).
The claiming age decision is the single biggest planning lever:
- Earliest claiming age: 62, with a permanent benefit reduction of up to ~30% versus the Full Retirement Age (FRA).
- Full Retirement Age (FRA): 67 for anyone born 1960 or later. No reduction.
- Delayed Retirement Credits: claim later than FRA and the benefit increases by 8% per year up to age 70 — a 24% lifetime uplift over FRA.
Spousal and survivor benefits add complexity: a married worker’s spouse can claim up to 50% of the worker’s PIA at their own FRA, and a widow(er) can claim up to 100% of the deceased’s benefit. Divorced spouses qualify if the marriage lasted at least 10 years.
A portion of Social Security benefits is taxable above an income threshold — up to 85% of benefits if “combined income” exceeds $34,000 (single) or $44,000 (MFJ).
Use the Social Security benefit estimator to model your benefit at different claiming ages.
Published 10 May 2026