Social Security is a key component of people's retirement income. But millions of Americans who rely on the program don't know everything they should about Social Security.
In the following video, Dan Caplinger, the Fool's director of investment planning, runs through three essential aspects of Social Security. Dan begins by describing the fact that Social Security's benefits are progressive, giving those with low average earnings a bigger percentage of their pre-retirement income than higher-income earners. In addition, he discusses how some people aren't eligible for Social Security. Finally, Dan looks at the Social Security Trust Fund, noting that unlike investors in the iShares Barclays 20+ Year Treasury ETF (NYSEMKT: TLT ) or iShares Barclays TIPS Bond ETF (NYSEMKT: TIP ) , Social Security doesn't lose money on the bonds it holds when rates rise and could actually benefit from higher rates in the long run.
Why Social Security is so important for you
Don't stop with these simple facts. Get the whole picture behind what makes Social Security tick and be smarter about your retirement. In our brand-new free report, "Make Social Security Work Harder For You," our retirement experts give their insight on making the key decisions that will help ensure a more comfortable retirement for you and your family. Click here to get your copy today.