Articles Social Security

December 18, 2014

Like the majority of Americans, you've likely been contributing to Social Security since you started working, and like the majority of Americans, the concept of Social Security may still be unclear.

To start, workers contribute 6.2 percent of their earnings into the Social Security system up to a certain level. Employers pay a matching contribution for each worker. Your Social Security benefits are calculated based on your 35 highest-earning years in the workforce, which are adjusted for inflation. The funds you receive are intended to provide some sort of supplemental retirement income in addition to money you've saved in other accounts.

Percentage of People Relying on Social Security for 50% or More of Their Retirement Income

Ages 65-69


Ages 70-74


Ages 75-79


Ages 80+


You must wait until you reach the Social Security Administration's full retirement age, which depends on the year you were born, in order to receive full benefits. You can start receiving partial Social Security benefits as early as age 62. Generally, you can receive Social Security retirement benefits while you're still working, but depending on your age and earnings, your benefits may be reduced.

Born before 1938

May receive full benefits at age 65


Born between 1938 and 1959

May receive full benefits after 65 and before 67, depending on your year of birth


Born after 1959

May receive full benefits at age 67

If you do continue working full-time beyond retirement age, you may be able to increase your Social Security benefit, which will be added in automatically from the time you reach full retirement age until you start taking benefits or reach age 70. Some of your Social Security benefits may be taxable, depending on your overall income for the year. If you worked for a federal, state or local government where you didn't pay Social Security taxes, the pension you receive from that agency may reduce any Social Security benefits for which you are qualified. Some or all of your spouse's or widow(er)'s Social Security benefit may be offset if you receive a pension from a job where you didn't pay Social Security taxes.

If your pension is from work where you also paid Social Security taxes, it won't affect your Social Security benefit. Pensions based on work that isn't covered by Social Security (e.g., the federal civil service and some state, local or foreign government systems), however, may reduce the amount of your Social Security benefit.

Connect with a financial advisor to manage your retirement funds, including Social Security benefits.

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An investor should consider, before investing, whether the investor's or designated beneficiary's home state offers any state tax or other benefits that are only available for investments in such state's qualified tuition program.

If a municipal fund security describes one or more of their investment options as having the characteristics of a money market fund, it is important to know that an investment in the security is not insured or guaranteed by the FDIC or any other government agency (unless such guarantee is specifically provided by or on behalf of such issuer) and, if the security is held out as maintaining a stable net asset value, that although the issuer seeks to preserve the value of the investment at $1.00 per share or such other applicable fixed share price, it is possible to lose money by investing in the security.