A fuller guide to this term is on the way. In the meantime, the related terms below explain the ideas around it.
Related MoneyPedia terms
- Social SecurityA federal program that pays monthly income to retirees, funded by payroll taxes collected during your working years.
- Full Retirement AgeThe age at which you can collect your complete Social Security benefit without any reduction for claiming early.
- Retirement AgeThe age at which you choose to stop working, which affects your savings, Social Security timing, and Medicare eligibility.
- FICAThe payroll tax that funds Social Security and Medicare, split between you and your employer on your wages.
- Retirement IncomeThe money you live on after you stop working, drawn from savings, Social Security, pensions, and other sources.
- Medicare Part BThe part of Medicare that covers doctor visits and outpatient care, with a monthly premium usually deducted from Social Security.
More in Retirement
Plain-English education — not personalized legal, tax, or investment advice.