Many people think of Social Security income as a simple supplement to the retirement savings they've amassed over the years. But for many seniors, Social Security offers an important way to strengthen their financial situation and keep them independent in the decades to come.

Why is Social Security so important?

The advantages of tax deferral are often emphasized when it comes to saving for retirement. So it might seem like a good idea to hold off on taking taxable distributions from retirement plans for as long as possible.

You probably wouldn't expect to know how to effectively use all the features of a specialty saw in a craftsman’s workshop without some instructions. Likewise, you shouldn't expect to understand all the ins and outs of Social Security without a little help. Just like that specialty saw, Social Security is a tool you should try to thoroughly understand before you begin using it.

One of the challenges of planning for retirement is that an unexpected event, like divorce, can dramatically change your retirement income needs. If you were counting on your spouse's Social Security benefits to provide some of your retirement income, what happens now that you're divorced?

What are the rules?

Deciding when to begin receiving Social Security benefits is a major financial issue for anyone approaching retirement because the age at which you apply for benefits will affect the amount you'll receive.

Fifteen years ago, the Social Security Administration (SSA) launched the Social Security Statement, a tool to help Americans understand the features and benefits that Social Security offers.

New figures announced

The Social Security Administration (SSA) has announced that Social Security and SSI beneficiaries will receive a 1.7% cost-of-living adjustment (COLA) for 2015.

Every year, the Trustees of the Social Security Trust Funds release a report to Congress on the current financial condition and projected financial outlook of the program. This year's report, released on July 28, contains valuable information about the health of Social Security that may help you understand how your Social Security benefits might be affected.

It's easy to take Social Security for granted when retirement is years away, but with 94% of the U.S.