The Social Security program was established in 1935 to provide retirement income for certain U.S. workers. It was later expanded to cover most of the country’s workforce and remains America’s pension plan and the financial lifeline many people use to stay afloat during retirement.
In 2024, nearly 68 million Americans per month will receive a monthly Social Security benefit, totaling $1.5 trillion in paid benefits. Social Security benefits represent about 30% of the income of people over age 65.
1. When Am I Eligible?
Individuals are eligible for full retirement benefits as early as 65 or as late as 67. If you opt to receive Social Security at age 62, monthly benefits are permanently reduced. For example, for those who take benefits at 62 with a full retirement age of 66, benefits are reduced by 25%. Those who postpone benefits past full retirement age are rewarded with a higher benefit: 8% for each year up to age 70 for those born in 1943 or later, when benefits max out and there is no further incentive to delay signing up.