Social Security Calculator

Social Security Calculator

The U.S. Social Security website provides calculators for various purposes. While they are all useful, there currently isn’t a way to help determine the ideal (financially speaking) age at which a person between the ages of 62-70 should apply for their Social Security retirement benefits. This tool is designed specifically for this purpose. Please note that this calculator is intended for U.S. Social Security purposes only.

The term “Social Security” is used in the U.S. to refer to the system that provides monetary assistance to people with inadequate or no income. The term can be better understood by thinking of it as the “financial security of society.” Although they may not go by the same name, there are many similar government systems in place throughout the world. This calculator is specifically intended for U.S. Social Security purposes.

Social Security in the U.S.

Before Social Security (SS), care for the elderly or disabled in the U.S. wasn’t a federal responsibility; if they weren’t cared for by family, it fell into the hands of municipalities or states. This changed in 1935 when the Social Security Act (originally named the Economic Security Act) was first established in the U.S. by President Franklin Roosevelt. The first taxes were collected starting in January 1937, which enabled monetary assistance to qualified Americans with inadequate or no income. Originally, SS was just a program that paid out retirement benefits, but a 1939 change added survivors benefits for a retiree’s spouse and children. In addition, in 1956, disability benefits were added.

Today, SS in the U.S. plays a very important role in keeping a lot of older Americans out of poverty. For most Americans in retirement, it is their major source of income, and for a significant percentage, it is their only source of income, even though SS was never intended to be a full replacement of income. On average, SS pays lower-wage earners higher relative benefits than higher-wage earners. In addition, lower-wage earners tend to pay less tax and are more likely to receive social insurance disability income and survivor benefits. SS is sometimes referred to as Old Age, Survivors, and Disability Insurance (OASDI).

Social Security Facts

• About 169 million Americans pay SS taxes.
• About 65 million Americans collect monthly benefits, which is about 1 in 5 Americans.
• About one out of four families receive benefits from SS.
• More than three out of five SS beneficiaries rely on their benefits for more than half of their income, while one-third rely on it for all of their income.
• The administrative costs of SS add up to roughly 1% of total expenditure from the Old-Age & Survivors Insurance and Disability Insurance trust funds.