Guides / Life Events / Planning for Retirement

Should You Count On Social Security?

Social Security is likely to remain part of your retirement income, but how much you should rely on it depends on your age, your earnings history, and how conservative you want your planning to be.

Start With Your Own Benefit Estimate

The Social Security system supports tens of millions of retired workers, and the average retired worker's monthly benefit runs in the neighborhood of $1,800. But averages tell you very little about your own situation. The program is also under long-term demographic pressure: the ratio of workers paying in to beneficiaries drawing out has been shrinking for decades and is projected to keep shrinking through the mid-2030s.

The most useful thing you can do is pull your own personalized estimate from the Social Security Administration rather than relying on generic figures. Your statement shows what your benefit would look like at three key ages: 62 (the earliest you can claim, at a permanently reduced amount), your normal retirement age (66 to 67 depending on your birth year), and 70 (the latest age at which delaying still earns you a bigger check).

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Three Steps To Protect Your Future Benefit

A few habits go a long way toward making sure the benefit you eventually receive is the one you actually earned.

1. Check your earnings record for errors. Your benefit is calculated from your highest years of indexed earnings. If an employer misreported your wages, or a year is missing entirely, your benefit could be understated for the rest of your life. Review your earnings history against your own tax records periodically, not just once.

2. Understand how your claiming age changes the number. Claiming at 62 typically locks in a benefit around 20% to 30% lower than your full retirement age amount. Waiting past full retirement age adds roughly 8% per year up to age 70. Spousal benefits follow a similar pattern: claiming early caps a spouse's benefit around 32.5% to 35% of the worker's full benefit, versus 50% at full retirement age. Full retirement age itself has been phasing upward and now sits at 67 for anyone born in 1960 or later.

3. Decide, deliberately, how much weight to give it in your plan. Younger workers in particular have good reason to build in a safety margin. A common approach is to discount your current estimate to roughly 75% of the stated figure and use that reduced number as the Social Security line item in your broader retirement projections. If the program ultimately pays the full amount, you come out ahead of plan; if benefits are trimmed, you are not caught off guard.

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How Much Should You Rely On It?

For most people, Social Security is best treated as a floor, not a plan. It was never designed to fully replace pre-retirement income on its own, and for many households it covers only a portion of retirement expenses. The rest needs to come from personal savings, employer retirement plans, and other investments.

If you run your own business or side venture, a tax-advantaged retirement plan can meaningfully increase the share of retirement income you control directly, rather than depending on a government benefit whose long-term funding is uncertain.

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Keeping Good Records With the SSA

Whenever you deal with the Social Security Administration, whether by phone, online, or in person, keep a paper trail. Do business online or in writing whenever possible so there is a record of what was said and when. If you speak with someone by phone or in an office, note the date, the employee's name, and any ID or reference number they give you.

If you disagree with a decision the SSA makes about your benefits, you generally have the right to request a "reconsideration." Ask about deadlines for filing an appeal and whether a waiver is available if you have missed one, since missing a filing window can sometimes be excused for good cause.

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Frequently asked questions

At what age should I claim Social Security?

There is no single right answer. Claiming at 62 gives you income sooner but permanently reduces the monthly amount; waiting until 70 maximizes the monthly benefit but means more years without it. The right age depends on your health, other income sources, and whether you are still working.

Will Social Security still exist when I retire?

The program is expected to continue, but its long-term funding faces real pressure from demographic shifts. Building a retirement plan that does not depend entirely on Social Security is a reasonable hedge regardless of how that plays out.

How do I get my personalized benefit estimate?

You can create a free account through the Social Security Administration to view your earnings record and estimated benefits at different claiming ages.

Does my spouse's work history affect my benefit?

It can. Spousal benefits are available even to a spouse with little or no earnings history of their own, generally up to 50% of the working spouse's full retirement age benefit if claimed at the spouse's own full retirement age.

This guide is for general informational purposes only and is not tax, legal, financial, or investment advice. Every business situation is different, so consult a licensed professional before making decisions based on this content.