Social Security

Social Security is an important source of retirement income for many people. Understanding Social Security will help you be better prepared for your financial future.

How It Works

  • Workers and employers both pay taxes to fund benefits for future retirees. The current tax rate is 6.2% for the employer and 6.2% for the employee.
  • These tax deductions appear on your pay statement as OASDI, which stands for Old-Age, Survivors and Disability Insurance program.

Social Security Snapshot 

Who is eligible?

When you work and pay Social Security taxes, you earn “credits” toward Social Security benefits. The number of credits you need to qualify for retirement benefits depends on when you were born. If you were born in 1929 or later, you need 40 credits (10 years of work).

What are the benefits?

  • Full Social Security retirement benefits can begin as soon as you reach your “full retirement age,” which depends on your year of birth.

Age to receive full Social Security benefits

Year of birth

Full retirement age

1943-1954

66

1955

66 and 2 months

1956

66 and 4 months

1957

66 and 6 months

1958

66 and 8 months

1959

66 and 10 months

1960 and later

67

NOTE: People born on January 1 of any year, refer to the previous year.

  • Early Social Security retirement benefits can begin as early as age 62, but the monthly benefit will be reduced. The earlier payments begin, the greater the reduction.
  • Delayed retirement is when you choose to keep working beyond for your full retirement age. In that case, your monthly benefit amount can increase.

What to do

Create a My Social Security Account

Creating a free, secure account gives you the control to:

  • Check your Social Security statement
  • Change your address
  • Verify your reported earnings
  • Estimate your future benefits
  • Use personalized tools
  • Request a replacement Social Security card
  • Manage benefits you already receive

Apply for Social Security Retirement Benefits

When it’s time, you can apply for retirement benefits:

In person by appointment with a local Social Security office

Contacts

My Social Security

 

 

When Coverage Ends

If You and Your Spouse or Domestic Partner Are Both Grainger Team Members

Resources

Special Savings Offers

Videos

Profit Savings Plan

Retirement Benefit Questions (65+/Medicare-eligible [including disabled early Medicare eligible] and pre-65 eligible retirees/dependents)

Medicare Plan Options Questions (65+ or early Medicare retirees with or without Grainger Retiree Health)

Questions

Connect with a Benefit Pro

Access the Provider Search Tool

When Coverage Ends

If You and Your Spouse or Domestic Partner Are Both Grainger Team Members

Resources

Special Savings Offers

Videos

Profit Savings Plan