What you get each month from Social Security

Social Security sends you a fixed amount every month based on your work history and the age you started taking benefits. The payment arrives on the same day each month — usually between the 3rd and the 23rd, depending on your birth date — and goes directly to your bank account, prepaid card, or paper check if you request it.

The amount you receive is calculated from your highest 35 years of earnings. If you worked fewer than 35 years, zeros are counted for the missing years, which lowers your payment. The longer you wait to start benefits after age 62, the larger your monthly check becomes — this is called delayed retirement credits, and your payment grows by roughly 8 percent per year until age 70.

Your payment does not change month to month based on the cost of living. Instead, Social Security adjusts all payments once per year, usually in January, based on inflation. This adjustment is called the Cost of Living Adjustment, or COLA. In years with no inflation, there is no COLA increase.

Key Takeaways

  • Your monthly payment amount is determined by your 35 highest-earning years and the age you claim benefits, and it stays the same each month unless Social Security adjusts it for inflation.
  • Payments arrive between the 3rd and 23rd of each month by direct deposit, prepaid card, or paper check, depending on your birth date and payment method choice.
  • Waiting to claim benefits after age 62 increases your monthly payment by roughly 8 percent per year until you reach age 70.
  • Social Security adjusts all payments once per year for inflation, usually in January, though the adjustment amount varies by year.
  • You must report changes in your life — such as returning to work, marriage, or a change in address — because they can affect your payment amount or may be able to access.

How your payment amount is calculated

Social Security looks at your earnings record from the year you turn 22 through the year before you claim benefits. It takes your 35 highest-earning years, adjusts them for inflation, and calculates an average. From that average, it applies a formula that gives you a larger percentage of your early earnings and a smaller percentage of your later earnings. This formula is designed so that people who earned less during their working years receive a higher replacement rate — meaning their benefits replace a larger share of their former income.

If you worked fewer than 35 years, Social Security counts zeros for the missing years. This significantly reduces your payment. For example, if you worked only 30 years, five zeros are averaged in, which lowers your benefit amount. There is no way to remove these zeros, but you can increase your payment by working longer and replacing lower-earning years with higher-earning ones.

The age you claim benefits also changes your payment. If you claim at 62, you receive a reduced payment — roughly 30 percent less than your full retirement age amount. If you wait until your full retirement age (which ranges from 66 to 67 depending on your birth year), you receive 100 percent of your calculated benefit. If you wait until 70, your payment is roughly 24 to 32 percent higher than your full retirement age amount, depending on your birth year.

When payments arrive and how to receive them

Social Security deposits your payment on a set schedule based on your birth date. If you were born on the 1st through the 10th of any month, your payment arrives on the second Wednesday of each month. If you were born on the 11th through the 20th, it arrives on the third Wednesday. If you were born on the 21st through the 31st, it arrives on the fourth Wednesday. Retired workers who claimed benefits before May 1997 receive payments on the 3rd of each month.

You must receive your payment by direct deposit, prepaid debit card, or paper check. Direct deposit is the fastest and most find method — the money reaches your bank account on the scheduled day. A prepaid card issued by Social Security works similarly but requires you to set up and manage the card. Paper checks take longer to arrive and are more vulnerable to loss or theft, so Social Security encourages direct deposit or card payment instead.

To set up or change your payment method, log into your my Social Security account online, call Social Security at 1-800-772-1213, or visit your local Social Security office. Changes typically take one to two months to take effect, so plan ahead if you need to switch methods.

Cost of Living Adjustments and annual increases

Once per year, usually in October, Social Security announces a COLA for the following year. The adjustment is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers, a measure of inflation published by the Bureau of Labor Statistics. If inflation has occurred, all Social Security payments increase by the same percentage starting in January.

In years with no inflation or with deflation (falling prices), there is no COLA increase. This has happened three times since 2000 — in 2010, 2011, and 2016. Your payment stays the same as the previous year in those cases. You cannot receive a COLA decrease; if prices fall, your payment does not go down.

The COLA affects all Social Security beneficiaries equally — retirees, disabled workers, and survivors all receive the same percentage increase. It does not depend on your age, how long you have been receiving benefits, or how much you earn. The increase is automatic; you do not need to do anything to receive it.

Changes that affect your payment

Certain life events require you to report to Social Security because they can change your payment amount or your may be able to access to receive it. If you return to work before reaching your full retirement age, your benefits may be reduced or suspended depending on how much you earn. Social Security reduces your payment by $1 for every $2 you earn above an annual limit. Once you reach your full retirement age, there is no earnings limit, and your payment is not reduced no matter how much you work.

If you marry, divorce, or become widowed, you may be may have access to to spousal or survivor benefits, or your current benefits may change. You must report the marriage or divorce to Social Security within 30 days. If you move to a different address, report the change so Social Security can reach you if needed. If you are receiving benefits as a disabled worker and your medical condition improves, you must report that as well.

If you receive a government pension from work where you did not pay Social Security taxes — such as some federal, state, or local government jobs — your Social Security payment may be reduced by a provision called the Government Pension Offset or the Windfall Elimination Provision. These reductions are applied when you claim benefits, not later, but you should be aware of them if you have a government pension.

Taxes on your Social Security payment

Depending on your total income, a portion of your Social Security benefits may be subject to federal income tax. If your combined income — which includes your Social Security benefits, wages, interest, and other income — exceeds certain thresholds, you may owe tax on up to 85 percent of your benefits. The thresholds are $25,000 for single filers and $32,000 for married couples filing jointly. These thresholds have not changed since 1984.

Social Security does not automatically withhold federal income tax from your payment. You can request voluntary withholding by completing Form W-4V and submitting it to Social Security, or you can make estimated tax payments to the IRS yourself. Many beneficiaries choose to have taxes withheld to avoid a large tax bill at the end of the year.

State income tax on Social Security benefits varies by state. Some states do not tax Social Security at all, while others tax it under the same rules as the federal government. A few states have their own rules. Check your state's tax agency website to learn whether your state taxes Social Security benefits.

Frequently Asked Questions

Can I change my payment method after I start receiving benefits?

Yes. You can switch between direct deposit, a prepaid card, and paper checks at any time. Log into your my Social Security account, call 1-800-772-1213, or visit a local Social Security office. The change usually takes one to two months to take effect, so your next payment may still arrive using your old method.

What happens to my payment if I work while receiving Social Security?

If you have not yet reached your full retirement age and you earn more than the annual limit (which changes yearly), Social Security reduces your payment by $1 for every $2 you earn above that limit. Once you reach your full retirement age, there is no earnings limit, and your payment continues regardless of how much you work.

Will my payment increase if I continue working after I claim benefits?

Yes, if your new earnings are higher than one of your 35 highest-earning years on record. Social Security recalculates your benefit each year and replaces a lower-earning year with the new higher year if applicable. This recalculation is automatic and happens in January.

How do I know if my Social Security payment is correct?

Log into your my Social Security account to view your payment history and earnings record. If you notice an error in your earnings record, contact Social Security when ready because errors can affect your payment amount. You can also request a detailed benefit statement by mail from Social Security.

What if I disagree with my payment amount?

You can request that Social Security review your case. Contact your local Social Security office or call 1-800-772-1213 to explain your concern. If you believe an error was made in calculating your benefit, Social Security will investigate. If you disagree with the decision, you have the right to appeal.