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Social Security

August 22, 2026 · Aditya Gupta

Retirement

Social Security is a federal program providing retirement, disability, and survivor benefits funded by payroll taxes (FICA — 6.2% from employee + 6.2% from employer up to the wage base, $176,100 for 2026). Retirement benefits are based on 35 highest earning years, adjusted for inflation. Full Retirement Age (FRA) ranges 66-67 depending on birth year. Claiming early (age 62) reduces benefit by ~25-30%; delaying past FRA increases benefit by 8% per year up to age 70. Average benefit: $1,900/month; max: $5,108/month at age 70 (2026). Up to 85% of benefits are taxable for higher-income retirees.

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