What Your Social Security Payment Will Be

Your Social Security payment is calculated from your earnings record — specifically, the 35 years in which you earned the most money. The Social Security Administration (SSA) converts your actual earnings into "indexed" earnings that account for wage growth over time, then averages your highest 35 years and applies a formula that gives you a smaller percentage of each dollar as your earnings go up. The result is your Primary Insurance Amount (PIA), which is the payment you receive at your full retirement age.

The exact dollar amount depends on three things: how much you earned over your lifetime, what age you were born (which determines your full retirement age), and what age you claim benefits. Someone born in 1960 has a full retirement age of 67; someone born in 1943 or earlier has a full retirement age of 66. If you claim at 62, your payment is permanently reduced. If you claim at 70, your payment is permanently increased. The SSA publishes a detailed earnings record for you to review, and you can see estimates of what you would receive at different claiming ages.

Key Takeaways

  • Your payment is based on your 35 highest-earning years, indexed for wage growth, then run through a formula that replaces a smaller percentage of higher earnings.
  • Your full retirement age depends on your birth year and ranges from 66 to 67 for people born between 1943 and 1960.
  • Claiming at 62 reduces your payment by roughly 25 to 30 percent; claiming at 70 increases it by roughly 24 to 32 percent compared to your full retirement age amount.
  • You can view your actual earnings record and benefit estimates on your my Social Security account at ssa.gov, which you can create with an email address.
  • If you have not worked 10 years (40 quarters), you will not receive a benefit on your own record, though you may receive a spousal or survivor benefit.

The Three Steps the SSA Uses to Calculate Your Benefit

The SSA starts by taking your actual earnings from each year you worked and adjusting them for inflation using a wage index. This is called indexing. For example, if you earned $20,000 in 1990, the SSA does not use $20,000 in today's dollars — it uses the actual $20,000 but applies a multiplier that reflects how much wages have grown since then. This makes it fair to compare your 1990 earnings to your 2010 earnings on the same scale.

Next, the SSA selects your 35 highest indexed-earning years. If you worked fewer than 35 years, it counts zeros for the missing years, which lowers your average. If you worked more than 35 years, only your best 35 count. The SSA then divides the total of those 35 years by 420 (the number of months in 35 years) to get your Average Indexed Monthly Earnings (AIME).

Finally, the SSA applies a bend-point formula to your AIME. The formula takes a high percentage of your first $1,174 in monthly earnings (the exact dollar amount changes each year), a lower percentage of earnings between $1,174 and $7,078, and an even lower percentage of anything above $7,078. For 2024, the formula is roughly 90 percent of the first $1,174, 32 percent of the next $5,904, and 15 percent of anything above that. This is why Social Security replaces a larger share of low earners' income than high earners' income.

How Your Birth Year Affects Your Full Retirement Age

The age at which you can receive your full benefit amount without any reduction is called your full retirement age (FRA). Congress raised this age gradually starting in 1983. If you were born in 1943 or earlier, your FRA is 66. If you were born between 1943 and 1954, your FRA is 66 plus a number of months — for example, if you were born in 1950, your FRA is 66 and 8 months. If you were born in 1955, your FRA is 66 and 10 months. If you were born in 1956 or later, your FRA is 67.

Your FRA matters because it is the age at which your Primary Insurance Amount (the benefit calculated from the formula above) is neither reduced nor increased. Claiming before your FRA reduces your payment; claiming after your FRA increases it. The reduction or increase is permanent — it applies to every payment you receive for the rest of your life.

What Happens When You Claim Early or Late

If you claim Social Security at 62 (the earliest age allowed), your payment is reduced by roughly 25 to 30 percent compared to what you would receive at your full retirement age. The exact reduction depends on your birth year. Someone born in 1943 who claims at 62 receives about 80 percent of their full retirement age benefit; someone born in 1960 who claims at 62 receives about 70 percent.

If you delay claiming past your full retirement age, your benefit increases by roughly 8 percent per year until age 70. Someone born in 1960 with a full retirement age of 67 who waits until 70 receives about 124 percent of their full retirement age benefit. After age 70, your benefit no longer increases, so there is no financial reason to delay past 70 (though you can still claim if you choose).

The trade-off between claiming early and claiming late is about how many years you expect to live. If you claim at 62, you receive a smaller payment but you receive it for more years. If you claim at 70, you receive a larger payment but you receive it for fewer years. The "break-even" age — the point at which total lifetime benefits are equal — is usually in the early 80s, but this varies based on your health and family history.

How to Find Your Earnings Record and Benefit Estimates

The SSA maintains an official record of your earnings and the taxes you paid into Social Security. You can view this record and see estimates of your benefit at different claiming ages by creating a my Social Security account at ssa.gov. You will need an email address and a phone number to set up the account. Once you log in, you can see your complete earnings history, verify that it is correct, and view your benefit estimates.

The estimates shown are based on your current earnings record and assume you continue working and earning at your recent average rate until you claim. If you plan to stop working, earn significantly less, or earn significantly more, your actual benefit may differ from the estimate. The SSA updates your record every year in October, so if you have recently worked, your estimate may not yet reflect your most recent earnings.

If you do not have internet access or prefer to speak with someone, you can call the SSA at 1-800-772-1213 (TTY 1-800-325-0778) to request a paper statement, though the SSA no longer mails them automatically. You can also visit a local Social Security office in person, though wait times can be long.

Common Reasons Your Actual Payment May Differ From Your Estimate

Your benefit estimate assumes you will continue working until you claim and that your earnings will follow your recent pattern. If you stop working, retire early, or have a year of zero earnings, your AIME will be lower and your benefit will be lower. Conversely, if you work longer than expected or earn more than your recent average, your benefit may be higher.

If you have a gap in your work history — years when you earned very little or nothing — those years count as zeros in your 35-year average. This is especially common for people who took time out of the workforce to raise children, care for a family member, or recover from illness. The SSA does not exclude caregiving years automatically, so your estimate reflects the zeros.

If you were born outside the United States, you may have a different work history or may not have a Social Security record at all. If you worked in another country, those earnings typically do not count toward Social Security, though some countries have agreements with the SSA that allow certain credits to transfer. If you are not a U.S. citizen, you must meet additional requirements to receive benefits.

How Spousal and Survivor Benefits Are Calculated

If you are married, divorced, or widowed, you may be may have access to to a benefit based on your spouse's or ex-spouse's earnings record, even if you did not work enough to receive a benefit on your own record. A spousal benefit is typically up to 50 percent of your spouse's Primary Insurance Amount if you claim at your full retirement age, or less if you claim earlier. A survivor benefit is paid to your widow, widower, or children if you die, and the amount depends on your Primary Insurance Amount and the number of family members who are may have access to.

These benefits are calculated separately from your own benefit and have their own rules about when you can claim and how much you receive. If you are may be able to access for both your own benefit and a spousal or survivor benefit, the SSA will pay your own benefit first, then add a portion of the spousal or survivor benefit if it is higher. The exact calculation depends on your age when you claim and your birth year.

Frequently Asked Questions

Can I see what my payment will be before I claim?

Yes. Create a my Social Security account at ssa.gov to view your earnings record and see estimates of your benefit at ages 62, full retirement age, and 70. These estimates are based on your current record and assume you continue working at your recent earnings rate. If your work history or earnings are likely to change, your actual benefit may differ.

What if there is an error in my earnings record?

Review your earnings record on your my Social Security account and contact the SSA if you see a discrepancy. You will need to provide documents such as W-2s or tax returns to prove your actual earnings. The SSA has a important date for correcting errors, so report them as soon as you notice them.

Does my benefit change if I keep working after I claim?

If you claim before your full retirement age and continue working, the SSA will reduce your benefit by $1 for every $2 you earn above a certain limit (the limit changes each year). Once you reach your full retirement age, there is no earnings limit and your benefit will not be reduced, though it may be recalculated if your new earnings are high enough to replace one of your lower 35 years.

How much will my spouse receive if I die?

Your widow or widower can receive up to 100 percent of your Primary Insurance Amount if they claim at their full retirement age, or a reduced amount if they claim earlier. Your children can each receive up to 75 percent of your PIA until age 18 (or 19 if still in high school). The total paid to your family is capped at roughly 150 to 180 percent of your PIA.

What if I worked in another country?

Earnings from work outside the United States typically do not count toward Social Security. However, the SSA has agreements with some countries that allow certain credits to transfer. Contact the SSA or visit ssa.gov to see if your country has an agreement and whether your foreign work history may count.