Social Security is a U.S. government program funded through payroll taxes on employees, employers, and self-employed individuals. The taxes are collected under authority of the Federal Insurance Contribution Act (FICA) and support Social Security programs—including Old-Age, Survivors, and Disability Insurance.

Social Security provides a worker with a source of income during retirement or if the worker is unable to work due to a disability. It can also support a worker’s legal dependents (spouse, children, or parents) with benefits in the event of the worker’s death.

The Social Security program is administered by the Social Security Administration (SSA). The SSA keeps track of a worker’s earnings throughout their working life. When a worker retires, the amount of the worker’s monthly Social Security benefit depends on the worker’s earnings and the age at which the worker retires. Workers who retire earlier (beginning at age 62) typically receive lower benefit payments than they would if they postpone retirement.

In Hawaii, as in all states, Social Security is a federal program that provides financial support to eligible retirees, disabled individuals, and their dependents. The program is funded through payroll taxes levied on both employees and employers under the Federal Insurance Contributions Act (FICA). Self-employed individuals also contribute to the program through self-employment taxes. The Social Security Administration (SSA) administers the program and calculates benefits based on an individual's earnings history and the age at which they choose to retire. Early retirement can begin at age 62, but taking benefits at this age results in lower monthly payments compared to waiting until full retirement age. The full retirement age varies depending on the year of birth, and it gradually increases from 65 to 67 for those born in 1960 or later. Social Security benefits are a critical component of financial planning for retirement, and attorneys in Hawaii can provide guidance on how to optimize Social Security benefits as part of a comprehensive retirement strategy.