What Every 50-Year-Old Should Know About Social Security

As we enter our 50s and start dreaming harder about retirement, we're also probably thinking at least a little about Social Security. If you haven't already started learning about it, this is a fine time to do so.

Here are some vital things to know about Social Security.

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1. Know that your benefits aren't going to match your pre-retirement income

Social Security is designed to deliver around 40% of pre-retirement income, on average, to retirees, though for higher earners it will deliver less and for lower earners, more.

Clearly, for the most comfortable retirement, each of us should be building additional income streams for retirement. Here's just one example of how that might be achieved:

Data source: author.

2. Know what to expect from Social Security

Though Social Security benefits will be an important part of your retirement, there's a good chance that they'll deliver far less income than you might have expected. As of July, for example, the average Social Security retirement benefit was only $2,086 per month, or about $25,000 per year.

Those who have had above-average earnings in their working life will receive more, but not a king's ransom more. (The maximum benefit was recently $5,181, or about $62,000 annually -- but it's impossible for most folks to qualify for it.)

To access the latest estimates of your future benefits, set up a my Social Security account at the Social Security website.

3. Know that your Social Security benefits will increase over time

It's a very wonderful thing that Social Security benefits get adjusted upward over time, via nearly annual cost of living adjustments (COLAs). The latest increase, for 2026, was 2.8%.

Those increases are based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), though, a measure focused on workers. It would be more logical to base them on the Consumer Price Index for the Elderly (CPI-E), which weighs categories such as healthcare more heavily. After all, healthcare spending in retirement can be a major expense.

4. Know that you can make your future Social Security benefits bigger

There are multiple ways to increase your future benefits. For example, be strategic about when to claim your benefits. If you start collecting your benefits early, your benefit checks will be smaller -- but you'll collect many more of them. Delaying beyond your full retirement age will boost your benefit checks by about 8% for each year until age 70.

According to several studies, most people can maximize their total benefits by waiting until age 70 to claim them.

5. Know that the Social Security surplus is running dry

With more people retiring early and living longer, the ratio of workers to beneficiaries has been shrinking and Social Security's surplus is shrinking. Our benefits aren't due to go to zero, but if nothing is done, they're likely to shrink -- to around 78% of what we're due. Fortunately, there are ways to fix Social Security, if Congress takes action.

Get all this vital info under your belt, and you'll be better equipped to make savvy Social Security decisions.