Social Security Explained
Social Security was signed into law in 1935 as part of the New Deal. The goal of the program was simple: provide retired workers with a steady source of income after they stop working.
Over time, the Social Security system expanded to include several different types of benefits, including:
- Retirement Benefits
- Disability Benefits
- Survivor Benefits
- Supplemental Security Income (SSI)
Each of these programs serves a different purpose. On this page, we’ll focus specifically on Social Security Retirement Benefits, which is the program most people rely on during retirement.
Social Security Explained
Social Security was signed into law in 1935 as part of the New Deal. The goal of the program was simple: provide retired workers with a steady source of income after they stop working.
Over time, the Social Security system expanded to include several different types of benefits, including:
- Retirement Benefits
- Disability Benefits
- Survivor Benefits
- Supplemental Security Income (SSI)
Each of these programs serves a different purpose. On this page, we’ll focus specifically on Social Security Retirement Benefits, which is the program most people rely on during retirement.
Who Qualifies for Social Security?
To receive Social Security retirement benefits, you must meet a few basic requirements.
Generally, you must:
- Be a U.S. citizen or legally present resident
- Be at least 62 years old (earlier if receiving disability benefits)
- Have earned enough work credits, which typically means about 10 years of work
These work credits are earned by paying Social Security taxes while employed.
Qualifying Through a Spouse or Former Spouse
Even if you did not work long enough to qualify for Social Security on your own record, you may still be eligible for benefits based on a spouse’s work history.
If You Are Married
You may qualify for spousal benefits after one year of marriage.
If You Are Divorced
You may qualify based on your former spouse’s work record if the marriage lasted at least 10 years.
Spousal benefits can provide up to 50% of your spouse’s Social Security benefit, depending on when you choose to begin collecting.
However, you cannot collect both benefits at the same time. You will receive whichever benefit amount is higher — either your own or a portion of your spouse’s benefit.
If you begin drawing spousal benefits before your Full Retirement Age, the percentage you receive will be reduced.
Determining Your Social Security Benefit
One of the most common questions people ask is:
“How much will I receive from Social Security?”
Your benefit amount is based primarily on:
- Your lifetime earnings
- How long you worked
- The age you begin collecting benefits
Full Retirement Age (FRA)
Your Full Retirement Age (FRA) is the age at which you can receive 100% of your Social Security benefit.
Many people assume this age is 65, but that is actually the eligibility age for Medicare. Full Retirement Age depends on the year you were born.
For most people today, FRA falls between age 66 and 67.
Full Retirement Age by Birth Year
| Year of Birth | Full Retirement Age |
|---|---|
| 1955 | 66 years, 2 months |
| 1956 | 66 years, 4 months |
| 1957 | 66 years, 6 months |
| 1958 | 66 years, 8 months |
| 1959 | 66 years, 10 months |
| 1960 or later | 67 years |
If you begin collecting benefits before your Full Retirement Age, your monthly payment will be permanently reduced.
Check Your Social Security Benefit Estimate
The easiest way to see your estimated Social Security benefit is to create a free account on the Social Security Administration website at:
Once you create an account, you can:
- See your estimated monthly benefit
- Review your earnings history
- Check that your reported income is accurate
Keep in mind that the amount shown is an estimate based on the assumption that you continue working until your Full Retirement Age and earn about the same income.
In recent years, the average Social Security retirement benefit has been a little over $2,000 per month, though your personal amount may be higher or lower depending on your earnings history.
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Social Security Earnings Limit
If you choose to begin collecting Social Security before your Full Retirement Age, there is a limit on how much you can earn from wages.
For 2026, the earnings limit is $24,480 per year.
If you earn more than this amount while collecting benefits early, part of your Social Security benefit may be temporarily reduced.
Once you reach Full Retirement Age, this earnings limit disappears and you can earn as much as you want without reducing your Social Security benefits.
It’s also important to note that many types of income do not count toward the earnings limit, including:
- Pension income
- IRA withdrawals
- Investment income
- Capital gains
- Rental income
- Alimony or child support
- Gambling winnings
- Disability benefits
Generally speaking, the earnings limit mainly applies to income earned from wages or self-employment during that year.
How to Apply for Social Security
When you’re ready to start collecting Social Security benefits, you can apply online through the Social Security Administration website.
Most people apply directly through:
Once your benefits begin, your monthly amount typically remains fairly consistent for the rest of your life. You may see small annual increases through Cost of Living Adjustments (COLA) designed to help keep up with inflation.
Summary
Social Security retirement benefits provide an important source of income for millions of Americans during retirement.
Understanding when you qualify, how your benefits are calculated, and when to begin collecting can help you make more informed decisions about your financial future.
If you are approaching retirement and have questions about how Social Security and Medicare work together, we’re always happy to help.