What your Social Security benefit will be depends on your earnings history and the age you start collecting

Social Security calculates your monthly benefit using three pieces of information: how much you earned during your working years, how many years you worked, and what age you claim benefits. The Social Security Administration (SSA) has a formula that converts your lifetime earnings into a monthly payment. You cannot change the formula itself, but you can change two of the three inputs — the age you claim and, to some extent, your earnings record if it contains errors.

Your benefit amount is not based on how much you paid into the system or how long you worked at one job. It is based on your 35 highest-earning years across your entire working life. If you worked fewer than 35 years, zeros are counted for the missing years, which lowers your average. If you worked more than 35 years, only your top 35 count.

The SSA publishes your earnings record and estimates your future benefit online. You can see both right now, even if you do not plan to claim for years. That record is the starting point for any calculation you do yourself.

Key Takeaways

  • Your benefit amount is based on your 35 highest-earning years, so gaps in your work history lower your payment even if you worked long enough to receive benefits.
  • Claiming at 62 gives you a smaller monthly payment than claiming at your full retirement age, and claiming after full retirement age gives you a larger payment — the difference is permanent.
  • You can view your earnings record and benefit estimate on ssa.gov by creating a my Social Security account, and you should check it for errors before you claim.
  • The SSA's online calculator and the detailed benefit estimate both show you what you would receive at different claim ages, so you can compare scenarios before deciding.
  • Spousal and survivor benefits are calculated separately and may be available even if your own benefit is small.

How the SSA calculates your primary insurance amount

The SSA starts with your average indexed monthly earnings (AIME). This is your average monthly income during your 35 highest-earning years, adjusted for wage growth over time. The adjustment means that earnings from 1990 are not compared dollar-for-dollar to earnings from 2020 — they are indexed to account for inflation and wage increases in the economy.

Once the SSA has your AIME, it applies a formula called the primary insurance amount (PIA). This formula has three brackets, and each bracket pays a different percentage of your earnings. For example, in 2024, the formula might pay 90 percent of your first $1,174 in monthly earnings, 32 percent of earnings between $1,174 and $7,078, and 15 percent of earnings above $7,078. These dollar amounts change every year. The result is that lower earners receive a higher percentage of their earnings as a benefit, while higher earners receive a lower percentage.

Your PIA is your full retirement age benefit — the amount you receive if you claim at the age the SSA considers "full retirement age" for you. That age depends on your birth year and ranges from 66 to 67 for people born between 1943 and 1960. If you were born after 1960, your full retirement age is 67.

How claiming age changes your monthly payment

If you claim before your full retirement age, your monthly benefit is reduced. If you claim after your full retirement age, your monthly benefit is increased. These adjustments are permanent — they do not change once you start receiving benefits.

Claiming at 62 (the earliest age you can claim) typically reduces your benefit by about 25 to 30 percent, depending on your birth year. Claiming at 70 (the latest age most people wait) typically increases your benefit by about 24 to 32 percent compared to your full retirement age benefit. The exact percentages vary by birth year because the SSA adjusts them to keep the program's long-term costs roughly equal across different claim ages.

This means that if your full retirement age benefit is $2,000 per month, claiming at 62 might give you $1,400 per month for life, while claiming at 70 might give you $2,480 per month for life. Over a short time horizon, claiming early gives you more total money. Over a long time horizon, claiming late gives you more total money. The break-even point is typically in your early 80s, though it varies by individual.

If you claim before your full retirement age and continue working, the SSA reduces your benefit further if your earnings exceed a limit. In 2024, that limit is $23,400 per year. For every $2 you earn above the limit, your benefit is reduced by $1. This reduction ends once you reach your full retirement age.

Where to find your earnings record and benefit estimate

The SSA maintains a record of every year you worked and how much you earned. You can see this record for free on ssa.gov by creating a my Social Security account. You will need your Social Security number, email address, and a way to verify your identity — usually a driver's license or passport number.

Once you log in, you can view your earnings record year by year. Check it for errors: missing years, years with incorrect amounts, or years where you worked but nothing was reported. If you find an error, you can report it to the SSA through the same account. Errors are common and can significantly lower your benefit if not corrected.

The same account shows your benefit estimate, which is the SSA's projection of what you will receive at different claim ages. The estimate assumes you will continue working at your current pace until you claim. If you plan to retire early or work longer than usual, the estimate will be off. You can request a more detailed estimate by mail if you do not have an online account, though the online version is faster.

Using the SSA's online calculator

The SSA offers a free online calculator at ssa.gov/benefits/retirement/estimator.html. This tool lets you enter different claim ages and see what your benefit would be at each age. It pulls your actual earnings record from the SSA's database, so the results are based on your real work history, not a guess.

To use the calculator, you log in with your my Social Security account. You then select a claim age and the calculator shows your estimated monthly benefit at that age. You can run the calculation for multiple ages to compare — for example, age 62, 67, and 70 — and see the dollar difference between each option.

The calculator does not account for taxes on benefits, cost-of-living adjustments after you claim, or changes to the law. It is a snapshot of what the formula produces today, not a prediction of what you will actually receive. But it is accurate enough to compare scenarios and make a rough decision about when to claim.

Correcting errors in your earnings record

If you find an error in your earnings record, you have a limited time to correct it. The SSA generally requires that you report an error within three years, three months, and 15 days after the year in which you earned the money. After that window closes, the SSA can still correct the error if you have proof — such as a W-2 or tax return — but the process is slower.

To report an error, log into your my Social Security account and use the message feature to contact the SSA. Describe the error, the year it occurred, and include any documents you have that show the correct amount. The SSA will investigate and update your record if the error is confirmed. This can take several weeks or months.

If you are close to claiming and you find an error, report it when ready. A corrected earnings record can raise your benefit by hundreds of dollars per month. If you are years away from claiming, you have time to resolve it, but do not wait until you are ready to claim to check your record.

How spousal and survivor benefits are calculated

If you are married, divorced, or widowed, you may be may have access to to benefits based on your spouse's or ex-spouse's earnings record. These benefits are calculated separately from your own benefit and may be higher or lower depending on your situation.

A spousal benefit is typically 50 percent of your spouse's full retirement age benefit if you claim at your own full retirement age. If you claim earlier, the percentage is lower. You can receive a spousal benefit only if your spouse is at least 62 years old (or any age if you are caring for a child under 16), and you must be at least 62 yourself.

A survivor benefit is paid to your family members if you die. Your spouse, ex-spouse, children under 19 (or 19 if still in high school), and dependent parents may all be may have access to to a portion of your benefit. The total paid to your family is capped at about 150 to 180 percent of your full retirement age benefit, depending on how many family members receive it.

Frequently Asked Questions

Can I see what my benefit will be before I create a my Social Security account?

No, the SSA's online tools require you to log in with a my Social Security account. You can request a benefit estimate by mail by filling out Form SSA-7050-F and mailing it to your local Social Security office, but this takes several weeks. Creating an online account is faster and gives you access to your earnings record anytime.

What if I have years with no earnings because I was in school or raising children?

Those years count as zeros in your 35-year average, which lowers your benefit. The SSA does not give credit for time spent in school or caregiving. However, if you work longer than 35 years, your highest-earning years replace the zeros, so working additional years can raise your benefit.

Does my benefit change after I start claiming?

Your benefit increases each year by a cost-of-living adjustment (COLA), which is set by law and announced in October for the following year. The percentage varies — it has been as low as 0 percent and as high as 8.7 percent in recent years. Your benefit does not change based on how much you earned after you claimed, but it does change if you continue working and report additional earnings to the SSA.

What happens to my benefit if I was self-employed?

Self-employment income is reported to the SSA through your tax return. The SSA counts your net self-employment income (after the self-employment tax deduction) toward your earnings record. Make sure you file your taxes every year you are self-employed, even if you do not owe income tax, so the SSA has a record of your earnings.

Can I increase my benefit by working more years?

Yes. If you have fewer than 35 years of earnings, working additional years replaces the zero years in your average and raises your benefit. If you already have 35 or more years, working additional years only raises your benefit if your new earnings are higher than one of your current top 35 years. The SSA recalculates your benefit each year you work and report earnings.