Social Security is a federal program that provides financial protection for millions of Americans.
It delivers benefits to retirees, people with disabilities, survivors of deceased workers, and low-income individuals.
Through Social Security, workers pay taxes while employed, building eligibility for these benefits later in life.
What is Social Security and what programs are included?
Social Security refers mainly to the Old-Age, Survivors, and Disability Insurance (OASDI) system, administered by the Social Security Administration (SSA).
It helps replace a portion of your income when you retire, become disabled, or lose a wage-earning family member.
In addition, the SSA manages Supplemental Security Income (SSI) for people age 65 or older, blind, or disabled who have limited income and resources.
SSI is funded from general tax revenues rather than the Social Security trust funds.
Who qualifies for Social Security benefits?
You become eligible for Social Security benefits by earning “credits” through work.
In 2025, you earn one credit for each $1,810 of earnings, up to four credits per year.
To qualify for retirement benefits, most people need 40 credits (10 years of work).
For disability or survivor benefits, fewer credits may be required depending on your age and circumstances.
If a worker dies, their spouse, children, or dependent parents may be eligible for Social Security survivor benefits.
How are Social Security benefits calculated?
When you apply for Social Security retirement, the SSA computes your benefit using your 35 highest-earning years, indexed to reflect wage growth, to get your Average Indexed Monthly Earnings (AIME).
A formula then applies “bend points” to convert that AIME into your Primary Insurance Amount (PIA), which is your benefit at full retirement age.
If you start benefits early, your benefit is reduced; if you delay past full retirement age, your benefit increases.
The benefit replacement rate depends on how high your earnings were.
For low earners, Social Security can replace as much as 79 percent of income, and for high earners, about 28 percent.
How is Social Security funded and what is the trust fund?
Social Security is mainly funded through payroll taxes under FICA (for employees) and SECA (for the self-employed).
In 2025, employees pay 6.2 percent of wages up to a ceiling, and employers pay the same. For self-employed persons, the rate is 12.4 percent.
The taxable wage cap in 2025 is $176,100.
Revenue not needed immediately is placed in two trust funds—OASI and DI—held in special Treasury securities.
When outgoing benefits exceed incoming taxes, the trust funds are used to make up the difference.
What changes are expected or proposed for Social Security?
One major concern is trust fund depletion. The latest SSA projections suggest the OASI trust fund may run out around 2033, and combined funds by 2034.
After that, Social Security may only pay about 81 percent of scheduled benefits unless Congress acts.
Reforms under discussion include raising taxes, reducing future benefit growth (for example, via inflation indexing), or increasing the full retirement age.
Additionally, SSA has moved many services online and improved digital access.
Also, policy changes like the Social Security Fairness Act in 2025 eliminated the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO), which had reduced benefits for some public employees.
How do you access your Social Security record digitally?
You can use a my Social Security online account to manage your Social Security record.
Through it, you can view your earnings history, request benefit estimates, apply for benefits, and access your COLA notices.
Older “username/password” accounts have been phased out. Now access is through Login.gov or ID.me (federal identity verification services).
How do Social Security scams work and how to protect yourself?
Because Social Security and SSNs are critical identifiers, they are often targeted by scammers.
A common fraud is the SSA impersonation scam, where fraudsters call claiming they are from the SSA and demand payments or personal information.
To protect yourself:
- Never provide your SSN over an unsolicited call or message.
- The SSA never demands payment via gift cards or wire transfers.
- Verify legitimacy by calling official SSA numbers (1-800-772-1213).
- Use strong, unique passwords and enable multi-factor authentication for online accounts.
