Final answer:
The full amount of Social Security retirement benefits for an eligible person is determined by Total lifetime earnings. Number of dependents and marital status do not directly influence the benefit amount. The purpose of Social Security is to provide a social safety net for retirees, although it only replaces a portion of pre-retirement income.
Step-by-step explanation:
Understanding Social Security Retirement Benefits
Under Social Security, the full amount of retirement benefits for an eligible person is determined by Total lifetime earnings. This is because the benefit formula is based on the worker's lifetime earnings, with higher earnings typically resulting in higher benefits. While the full retirement age was originally set at 65, it has since been increased, affecting when beneficiaries may claim their full benefits. Moreover, the number of dependents or marital status does not directly affect the benefit amount. It's also important to mention that claiming benefits earlier than the full retirement age will result in reduced benefits while delaying benefits can increase the monthly payment.
Many retirees rely on Social Security for a significant portion of their income. The program is essential for preventing poverty among the elderly and provides a financial safety net for millions. However, it's important to note that Social Security is designed to only replace a portion of pre-retirement income, with lower-income workers receiving a slightly higher percentage of their earnings as benefits compared to higher-income workers.