Social Security & Pensions Basics

Social Security and pensions provide income that lasts for life. Here is how Social Security benefits are calculated, why claiming age matters so much and what the latest trust fund report says.

How Social Security works

Workers pay Social Security taxes on their earnings. After about 10 years of work (40 credits), you qualify for retirement benefits. Your benefit is based on your highest 35 years of inflation-adjusted earnings, and it is adjusted each year for inflation. It lasts for life, which makes it valuable protection against living a very long time.

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