Welcome to Social Security! This foundational guide breaks down the essential terms, calculation rules, and timelines you need to know to establish your retirement security.
What Is Social Security?
Social Security is a federal program created in 1935 that provides financial support to retired workers, disabled individuals, and the families of deceased workers. It is funded by payroll taxes paid by workers and employers throughout their careers. In 2026, over 73 million Americans receive some form of Social Security benefit.
How Do You Earn Social Security Credits?
To qualify for Social Security benefits, you need to earn work credits by paying Social Security taxes. In 2026, you earn one credit for every $1,730 in wages or self-employment income, up to a maximum of four credits per year. Most benefit types require 40 credits, which equals about 10 years of work.
How Is Your Benefit Calculated?
The SSA calculates your benefit using your highest 35 years of earnings, adjusted for inflation. This produces your Average Indexed Monthly Earnings (AIME). The AIME is then run through a progressive formula using bend points to produce your Primary Insurance Amount (PIA) — the benefit you receive at your Full Retirement Age.
When Can You Start Receiving Benefits?
You can begin receiving retirement benefits as early as age 62, but your benefit will be permanently reduced. Claiming at your Full Retirement Age (66 or 67 depending on birth year) gives you 100% of your PIA. Delaying until age 70 earns Delayed Retirement Credits of 8% per year, giving you up to 32% more per month for life.
How to Apply for Social Security
You can apply online at SSA.gov, by calling 1-800-772-1213, or by visiting your local SSA office. The SSA recommends applying three months before you want benefits to start. You will need your Social Security number, birth certificate, W-2 forms or self-employment tax returns, and bank account information for direct deposit.
Key Takeaways
Social Security is the foundation of retirement income for most Americans. Understanding your Full Retirement Age, your PIA, and the impact of claiming age is essential to making the most of your benefits. Use our free calculators to estimate your benefit at any age.