Social Security was created in 1935 as a way to provide Americans economic security when they retired or became disabled. It was also designed to benefit the spouses of Americans when the primary breadwinner passes away.
A majority of American workers pay Social Security taxes when they work to fund the system that pays a monthly income to older Americans when they are retired and choose to begin accepting those payments. Conceptually, the program makes sense, serving as a strong financial support for many Americans who depend on that income to survive financially in retirement.
The specific payments each American receives depends on the number of years worked and the amount they contributed to the system, which was based on how much money they made while working. However, it is true that most investors will receive more than $1,000 a month more from Social Security at age 70 than they would receive at age 62. The calculation each investor must make is how long they expect to live beyond age 70, which will go a long way toward determining the wisdom of waiting to take Social Security benefits.