Watching Your Wallet: Understanding Social Security Benefits

FRESNO, Calif. (KFSN) -- It's a benefit you likely pay into, whether you're aware of it or not.

Social Security is a government program that provides a fixed income for retirees.

"You pay into Social Security through payroll tax," Portfolio Advisors Lead Financial Advisor, AJ Flores said. "If you've ever checked your paystub, you'll see a little section there that says 'Social Security.'

Depending on the type, you can file to receive these benefits as income as early as 62. Most people's full retirement age is 67.

"You can make a case to delay Social Security in order to secure a higher monthly benefit for you," Flores said. "Waiting guarantees a higher benefit, but it also delays when you can start enjoying that income."

Flores says things to consider include health status, family longevity, other sources of retirement income and if there is a need.

For some, there is also a concern that Social Security isn't guaranteed.

"As of right now, Social Security is projected to be able to be funded 100% through at least 2033," Flores said. "After that point, assuming no changes are made, there may be some adjustments beyond 2033. Barring any action, Social Security will be able to pay out at least 77% of everyone's benefit just through the payroll tax through the workforce."

Flores suggests getting ahead of the game by checking your earnings history and making sure it's accurate on the Social Security website.

This will also help you coordinate your spousal strategy, if that applies.

"Knowing how you're eligible for, knowing how it is a piece of the puzzle and how it fits into the bigger picture is very important," Flores said.

You can make a login at any age to check on your account through the government's Social Security website.

There, you can see your current estimates for Social Security and calculate how much you'll receive at which age.

There is also a tutorial.

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