1. Retirement Benefits

The most well-known Social Security benefit is the monthly retirement income. If you delay claiming until full retirement age (or later), you can receive larger payments, maximizing your long-term financial security and reducing the need to tap into personal savings.

2. Cost-of-Living Adjustments (COLA)

Each year, Social Security benefits are adjusted for inflation through a cost-of-living adjustment (COLA). In 2025, a projected increase can help retirees keep up with rising costs without relying on personal savings.

3. Spousal Benefits

Even if you have never worked, you may be eligible for benefits based on your spouse’s Social Security record. This can be a valuable source of income, helping couples save money and balance household expenses.

4. Survivor Benefits

If a working spouse or parent passes away, Social Security provides survivor benefits to eligible family members, including children. These payments can significantly reduce financial stress and help maintain stability without depleting personal assets.

5. Disability Benefits

Social Security Disability Insurance (SSDI) supports individuals who are unable to work due to a severe medical condition. This financial assistance can help cover essential expenses, preserving personal savings and avoiding financial hardship.

6. Medicare Enrollment Assistance

Social Security helps eligible individuals enroll in Medicare, which can significantly lower healthcare costs. Medicare covers hospital stays, doctor visits, and prescription drugs, reducing out-of-pocket medical expenses.

7. Supplemental Security Income (SSI)

SSI provides financial assistance to low-income individuals who are aged, blind, or disabled. This benefit helps cover basic living expenses, reducing the need to dip into savings or accumulate debt.

8. Dependent Benefits for Children

If you receive Social Security benefits, your dependent children may also qualify for monthly payments. These benefits can help cover education and living costs, easing financial burdens on families.

9. Earnings Test Exemptions for Retirees

If you claim Social Security before full retirement age while still working, some benefits may be withheld based on your earnings. However, once you reach full retirement age, these withheld benefits are recalculated, and you receive higher payments, helping you recoup savings over time.

10. Tax Advantages on Benefits

A portion of Social Security benefits may be taxable depending on your total income. However, retirees with lower incomes can enjoy tax-free benefits, preserving more of their Social Security payments and reducing overall tax burdens.