Will Social Security run out?

The trust fund may be depleted by 2034 without changes. Even then, payroll taxes would fund ~77% of benefits. Congress may act before then. Plan for it, but don't assume it disappears.

Should I claim Social Security at 62?

It depends. If you need the money or have health concerns, early claiming can make sense. If you can wait, delaying to 70 increases your lifetime benefit for those who live past 80.

Can I work and collect Social Security?

Yes, but before FRA, benefits may be reduced if you earn over a limit. After FRA, no reduction. Benefits may be taxable depending on income.

Social Security Basics: What You Need to Know | Investors Lab

How Social Security Works

You pay payroll taxes during your career. In retirement, you receive monthly benefits based on your 35 highest-earning years. It's a safety net—not meant to replace full income.

When to Claim

Full retirement age (FRA): 66–67 depending on birth year. Claiming at FRA gives you 100% of your benefit.
Early (62): Reduces benefit by ~30%. Permanent reduction.
Delayed (70): Increases benefit 8% per year past FRA. Max increase at 70.

Trade-off: Claim early = more years of payments but smaller. Claim late = fewer years but larger payments. Break-even is typically around 78–80.

What Affects Your Benefit

Earnings history (35 highest years)
Claiming age
Working while claiming (before FRA can reduce benefits)
Spousal/survivor benefits

Role in Retirement

Social Security typically replaces ~40% of pre-retirement income for average earners. You'll need other savings (401k, IRA, pension) to maintain your lifestyle.

Practical tip: Create an account at ssa.gov to see your estimated benefits. Use that in your retirement planning.