Social Security is a government program designed to provide financial security to individuals, particularly in retirement or in the event of disability. It is funded through payroll taxes paid by employees and employers. The benefits received from Social Security can play a crucial role in maintaining a comfortable lifestyle during retirement.

One key aspect to understand is that Social Security benefits are based on your earnings history. The amount you receive will be calculated using a formula that takes into account your highest-earning years. It is, therefore, important to keep track of your income throughout your working years to ensure accurate benefit calculations.

Another important aspect to consider is the age at which you choose to start receiving benefits. While you can start claiming benefits as early as age 62, your monthly payments will be permanently reduced if you opt for early retirement. On the other hand, if you delay claiming Social Security benefits until after your full retirement age (which varies based on your birth year), you may be eligible for higher monthly payments.