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 New Jersey, as in all states, Social Security is a federal program that provides retirement, disability, and survivors benefits. It is funded through payroll taxes collected under the Federal Insurance Contributions Act (FICA). Employers, employees, and self-employed individuals all contribute to this program through these taxes. The Social Security Administration (SSA) administers the program and maintains a record of workers' earnings to calculate benefits. The amount of a worker's monthly benefit at retirement is based on their 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 postponing retirement. The program also extends benefits to eligible dependents of the worker in the event of the worker's death. While the program is federal, New Jersey residents are subject to the same Social Security regulations as those in other states.