Social Security

For most Americans, Social Security is the foundation of retirement income. Yet despite how common it is, many people don’t fully understand how it works. The system has layers of rules, exceptions, and hidden opportunities that can make a big difference in retirement planning. Here are some of the things most people don’t know about Social Security: Social Security Isn't Just a Retirement Program Most people think of Social Security only as a retirement benefit, but it also provides disability benefits, spousal benefits, survivor benefits, and even benefits for children in some cases. In fact, nearly one-third of beneficiaries are…

Social Security is often seen as a government benefit—something earned over a lifetime of work but not fully appreciated until retirement. However, when evaluated economically, Social Security represents one of the most valuable assets many retirees possess. Its true value becomes even clearer when viewed through the lens of a comprehensive lifetime net worth statement, which accounts for both current assets and the present value of future income and expenses. The Economic Value of Social Security At its core, the economic value of Social Security lies in its stream of guaranteed, inflation-adjusted payments that continue for life. These payments often rival…

When it comes to claiming Social Security retirement benefits, one of the most important terms to understand is Full Retirement Age—commonly referred to as FRA. Your FRA is a specific milestone that plays a central role in how much you receive from Social Security over your lifetime.  What is Full Retirement Age (FRA)? Your Full Retirement Age is the age at which you are eligible to receive your full, unreduced Social Security retirement benefit (also known as Primary Insurance Amount or PIA), as calculated by your earnings history.It is not the age at which you are required to retire, but…

For those planning to claim Social Security retirement benefits before reaching full retirement age (FRA), the Social Security Earnings Test can be a critical — and sometimes confusing — part of the picture. While claiming early gives you access to monthly income, earning too much from work may reduce your benefits temporarily. However, these withheld benefits are not lost — they’re factored back into your future benefit amount.If you're after your Full Retirement Age, earn all you want. It won't affect your benefit amount. Taxes - yes. Benefits - no.Here’s what you need to know. What Is the Social Security…

Social Security benefits are not static. They’re designed to adjust over time to reflect changes in a variety of situations. While many people are familiar with annual Cost-of-Living Adjustments (COLAs), several other mechanisms can cause your benefits to increase or decrease throughout retirement. Here’s an overview of the primary adjustments that can affect Social Security benefits: Cost-of-Living Adjustment (COLA) COLA is an annual increase in benefits to keep pace with inflation, measured by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The COLA is calculated in October of each year with the actual increase in benefits occurring in…

Social Security retirement benefits are designed to provide a steady income stream in retirement, but the amount you receive depends on when you claim. The decision to claim benefits early, at full retirement age (FRA), or delay past FRA significantly impacts the monthly payments you will receive for the rest of your life. Understanding how early claiming reduces benefits and how delayed claiming increases them is critical for optimizing Social Security as part of a broader retirement strategy. What It Means to Claim Early or Delay Social Security? Claiming early or delaying social security is simply the decision of when…