For most Americans, Social Security represents more than a check. It's a financial foundation that many retirees would struggle to live without.

An analysis conducted by the Center on Budget and Policy Priorities found that Social Security lifted 22.7 million people above the federal poverty line in 2022, 16.5 million of whom were adults aged 65 and above. The simple fact that Social Security exists and provides a guaranteed monthly benefit to eligible retirees has reduced the poverty rate among seniors aged 65 and above from an estimated 38.7% without the program to 10.2% with it.

For most future retirees, maximizing what they'll receive from Social Security is imperative. But in order to do so, they'll first need to understand the nuts and bolts of how their monthly benefit is calculated, as well as gain perspective on the importance of claiming age. Collecting benefits early (age 62), at a middle-ground age (65), or at the tail end of the traditional claiming age range (age 70), can have a myriad of advantages and drawbacks.

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Source Fool.com