The age at which you're entitled to your full Social Security benefit amount. It varies based on birth year, ranging from 66 to 67. Taking benefits before FRA reduces your monthly amount, while delaying increases it through delayed retirement credits.
Your basic Social Security benefit amount, calculated based on your lifetime earnings adjusted for inflation. It's the amount you'll receive if you start benefits exactly at your Full Retirement Age.
Annual increases to Social Security benefits designed to help maintain purchasing power against inflation. Based on the Consumer Price Index, these adjustments help benefits keep pace with rising costs.
The estimated percentage of your retirement portfolio you can withdraw annually without depleting your savings. Traditionally set at 4%, though this varies based on market conditions, time horizon, and asset allocation.
The federal government's version of a 401(k), offering low-cost investment options to federal employees and military personnel. Known for its simplicity and extremely low expense ratios.
The payroll tax that funds Social Security and Medicare. Split between employer and employee, with each paying 7.65% (6.2% for Social Security and 1.45% for Medicare) of wages.