Social Security is a federally-administered program in the United States that provides income to eligible individuals and their families during retirement, as well as disability and survivor benefits. It is funded through payroll taxes paid by workers and their employers.
When it comes to retirement, Social Security is an important source of income for many Americans. The amount of Social Security benefits a person is eligible to receive is based on their earnings history and the age at which they choose to start receiving benefits. In general, the earlier a person starts receiving benefits, the lower the monthly benefit amount will be, and vice versa.
Social Security benefits are designed to replace a portion of a person's pre-retirement income and help ensure a minimum standard of living in retirement. However, for most people, Social Security benefits alone are not enough to cover all of their expenses in retirement, which is why it is important to also have other sources of retirement income, such as a pension, an individual retirement account (IRA), or personal savings.
It is important to note that the Social Security program is facing financial challenges, with the trust fund projected to be depleted by 2035. Lawmakers are currently considering options to address the funding shortfall, which could involve changes to the program, such as reducing benefits or increasing payroll taxes.
