How does Social Security work?
Work about 10 years to qualify. Your check depends on your top 35 years of pay and your claiming age.
New to this?
Social Security is a federal program that pays a monthly check to retired workers, people with disabilities and families of workers who die. You pay into it through a tax on your paycheck. In return, you earn credits that make you eligible. Most US workers will get it, and it lasts for life, with yearly raises for inflation.
Read first
Myth
Social Security won't be there for me, so it doesn't matter.
Truth
Trustees project that even if Congress does nothing, incoming taxes could still pay about 83% of scheduled benefits after reserves run out in the mid-2030s. For most people, it is still a big piece of retirement income.
Worth memorizing
- 1
You need 40 credits to get retirement benefits.
You can earn up to 4 credits a year, so 40 credits takes about 10 years of work.
- 2
Your check comes from your top 35 years.
Social Security averages your highest 35 years of earnings, adjusted for wage growth. Years with no earnings count as zeros.
- 3
Claiming age changes your check for life.
Born 1960 or later: claim at 62 for 30% less, at 67 for 100%, or at 70 for 24% more.
I'd make a my Social Security account this week and check the earnings record, because a missing year can shrink your check. When it comes to claiming, I'd lean toward waiting if I were healthy and could afford it. The bigger check lasts for life.
Do this today
Create a my Social Security account at ssa.gov. Check that every year of your earnings record looks right, and write down your estimated monthly benefit at 62, 67 and 70.
Practice
1 of 3
Your benefit at full retirement age (67) is $1,500. About how much would you get by waiting until 70?
Waiting 3 years past 67 adds 8% a year, or 24%. $1,500 × 124% = $1,860.
2 of 3
How many Social Security credits do you need for retirement benefits?
You need 40 credits. At most 4 credits a year, that takes about 10 years of work.
3 of 3
How many years of earnings are used to figure your benefit?
The SSA averages your highest 35 years of indexed earnings. Fewer than 35 years means zeros pull the average down.
Tips
Open a my Social Security account
It shows your benefit estimates at different ages and your full earnings history. You can also add security to the account to help prevent someone else from misusing it.
Check your earnings record
Compare each year on your record with your W-2s. A missing year counts as a zero in your top 35. Report errors to the SSA as soon as you spot them.
Work at least 35 years
Every year under 35 adds a zero to your average. One more year of work can replace a zero or a low-earning year and raise your check.
Coordinate claiming as a couple
A spouse can get up to 50% of the other's full benefit. Often the higher earner waits to claim, because the larger check also becomes the survivor benefit.
A worked example: Marcus picks a claiming age
Marcus was born in 1990, so his full retirement age is 67. His my Social Security estimate at 67 is $2,000 a month, in today's dollars.
- At 62 he gets $2,000 × 70% = $1,400 a month. At 70 he gets $2,000 × 124% = $2,480 a month.
- By 70, claiming at 62 has paid $1,400 × 96 months = $134,400. Waiting pays $1,080 more each month after that.
- $134,400 ÷ $1,080 is about 124 months, so waiting pulls ahead a little after age 80, before cost-of-living raises.
- Benefit at 67$2,000
- 30% cut for claiming at 62−$600
- Benefit at 62=$1,400
- Benefit at 67$2,000
- 24% raise for waiting to 70+$480
- Benefit at 70=$2,480
- Age when waiting to 70 pulls ahead80
Common mistakes
Never checking your record
Your check is based on the earnings the SSA has on file. If an employer reported a year wrong, you could get less for life. Check it once a year.
Claiming at 62 by default
Starting early is right for some people, but it locks in a check up to 30% smaller for life. Compare your estimates at 62, 67 and 70 before you decide.
Mixing up Medicare and Social Security
Medicare starts at 65 even if you delay Social Security. The SSA says to apply for Medicare within 3 months of turning 65, or Part B and Part D may cost you more.
Going deeper
You pay Social Security tax while you work, earn credits, and after 40 credits you qualify for a monthly retirement check based on your highest 35 years of earnings. You can start it at 62 for a smaller check, at your full retirement age (67 if born in 1960 or later) for your full amount, or at 70 for the largest check.
How it's paid for
Workers pay 6.2% of wages in Social Security tax, up to $184,500 of earnings in 2026, and employers pay another 6.2%. Self-employed people pay both halves.
How you qualify
In 2026, you earn 1 credit for each $1,890 of covered earnings, up to 4 credits a year. You need 40 credits to be eligible for retirement benefits.
How your benefit is figured
The SSA indexes your past earnings for wage growth, averages your highest 35 years, and applies a formula that replaces a bigger share of pay for lower earners than for higher earners.
Ages that matter
The earliest you can claim is 62. Full retirement age is 67 for anyone born in 1960 or later. Waiting past full retirement age raises your check by 8% a year until 70.
Yearly raises
Benefits rise each year with a cost-of-living adjustment tied to inflation. For 2026, the raise is 2.8%.
More than a retirement check
Social Security pays three kinds of benefits. Retirement benefits go to workers who have earned enough credits. Disability benefits go to workers who can't work because of a serious medical condition. Survivor benefits go to the spouse and children of a worker who dies.
Because of the disability and survivor parts, Social Security works partly like insurance for young families. A worker in their 20s can qualify for disability benefits with far fewer than 40 credits.
How credits work
Credits are based on your total earnings for the year, not on how many months you worked. In 2026, earning $1,890 gets you 1 credit, and you can earn at most 4 a year. A part-time job can earn all 4.
Once you have 40 credits, you are eligible for retirement benefits. Extra credits don't raise your check. Your earnings over your best 35 years do.
Choosing when to claim
Claiming early gives you more checks, but each is smaller for the rest of your life. If your full retirement age is 67, claiming at 62 cuts your check by 30%. Waiting from 67 to 70 raises it by 8% for each year, or 24% in total. After 70, there is no extra raise for waiting.
The right age depends on your health, your other savings and your marriage. If you expect to live into your 80s and can cover your bills without it, waiting usually pays more over your lifetime. If you need the money or have health problems, claiming earlier can make sense. The SSA says there is no best age for everyone.
Working while you collect
If you claim before full retirement age and keep working, an earnings test applies. In 2026, if you earn more than $24,480, the SSA holds back $1 of benefits for every $2 you earn above the limit.
That money is not gone for good. At full retirement age, your check is recalculated to credit the months that were held back. From full retirement age on, you can earn any amount with no reduction.
Spouses and survivors
A spouse can claim a benefit based on the other spouse's record, worth up to 50% of that worker's full retirement benefit. It is smaller if the spouse claims before their own full retirement age.
When one spouse dies, the survivor who already gets their own benefit can switch to the survivor benefit if it is larger. You get the higher of the two, not both. That is a strong reason for the higher earner in a couple to think about waiting to claim.
Will it be there for you
The trustees report each year on the program's finances. The latest report projects that the combined retirement and disability trust funds can pay full benefits until the mid-2030s. After that, incoming taxes could still cover about 83% of scheduled benefits unless Congress changes the law.
Congress has changed the program before, including raising the full retirement age. Plan with your full estimate, or a trimmed version if it helps you sleep, but don't plan on zero.
Questions people ask
How much Social Security will I get?
It depends on your earnings history and claiming age. Your my Social Security account at ssa.gov shows a personal estimate. In 2026, the highest possible benefit for someone claiming at full retirement age is $4,152 a month.
Is Social Security taxed?
It can be. Depending on your total income in retirement, part of your benefit may be subject to federal income tax. You can pay the IRS directly or ask the SSA to withhold tax from your checks.
What is my full retirement age?
It is 67 if you were born in 1960 or later. For people born from 1955 to 1959, it falls between 66 and 2 months and 66 and 10 months. The SSA has a retirement age calculator by birth year.
Can I get Social Security if I never worked?
You may qualify for spouse or survivor benefits based on a spouse's work record, even with no credits of your own. If you are divorced, you may qualify on a former spouse's record if the marriage lasted at least 10 years.
Printable worksheet with answer key, free for classrooms. Lesson plan for this unit.
Sources
- SSA: Social Security credits
- SSA: Starting your retirement benefits early
- SSA: Delayed retirement credits
- SSA: Receiving benefits while working
- SSA: How benefits are computed
- SSA: Social Security if your spouse passes away
- SSA: Summary of the trustees reports
- CFPB: Planning your Social Security claiming age
- SSA: Maximum earnings subject to Social Security tax (2026)
Updated October 4, 2026. General education, not personalized financial, tax or legal advice. Figures are examples. Check current rates and limits before you act.
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