Your payment amount depends on your earnings history and the age you claim

Social Security calculates your monthly payment based on how much you earned during your working years and when you decide to start collecting. The Social Security Administration (SSA) looks at your 35 highest-earning years, adjusts them for inflation, and uses that average to determine your Primary Insurance Amount (PIA) — the payment you would receive at your full retirement age.

If you claim before full retirement age, your payment is reduced. If you delay claiming past full retirement age, your payment increases. Your full retirement age depends on your birth year and ranges from 66 to 67 for people born between 1943 and 1960. People born in 1960 or later have a full retirement age of 67.

You can see your estimated payment amount by creating an account on ssa.gov and viewing your Social Security Statement. This statement shows your earnings record and provides payment estimates at different claiming ages.

Key Takeaways

  • Your payment is based on your 35 highest-earning years, adjusted for inflation, so gaps in work history lower your benefit amount.
  • Claiming at 62 (the earliest age) reduces your payment by about 30 percent compared to claiming at full retirement age, and the reduction is permanent.
  • Delaying your claim past full retirement age increases your payment by about 8 percent per year until age 70, when increases stop.
  • You can view your personalized payment estimates on ssa.gov by signing into your account and checking your Social Security Statement.
  • Your actual payment may differ from estimates if your earnings change, you become disabled, or you have dependents who also receive benefits on your record.

How the SSA calculates your Primary Insurance Amount

The Social Security Administration uses a specific formula to turn your earnings history into a monthly payment. First, they identify your 35 highest-earning years. If you worked fewer than 35 years, they count zeros for the missing years, which lowers your average. This is why people with gaps in employment — due to caregiving, illness, or job loss — receive lower payments than those with continuous work histories.

Next, the SSA adjusts your historical earnings for inflation using a factor called the National Average Wage Index. This means your 1990 earnings are not compared directly to your 2020 earnings; instead, they are brought to a common value so the comparison is fair. The SSA then calculates your average monthly earnings across those 35 years.

Finally, they explore a formula called the bend points formula, which replaces a higher percentage of lower earnings than higher earnings. This is why Social Security replaces a larger share of income for lower-wage workers than for higher-wage workers. The result is your Primary Insurance Amount at full retirement age.

What happens when you claim before full retirement age

You can claim Social Security as early as age 62, but your payment will be permanently reduced. The reduction is roughly 6.7 percent per year before full retirement age, though the exact percentage depends on your birth year. If your full retirement age is 67 and you claim at 62, you lose five years of increases, which reduces your payment by approximately 30 percent for life.

This reduction applies even if you continue working and earning. If you claim before full retirement age and earn above a certain amount — $23,400 in 2024, though this changes yearly — the SSA withholds $1 in benefits for every $2 you earn above that threshold. Once you reach full retirement age, the earnings limit no longer applies and your payment is no longer reduced.

Claiming early makes sense if you have health reasons to believe you will not live to average life expectancy, or if you need the income when ready. It does not make sense if you expect to live well into your 80s, because the permanently lower payment means you receive less total money over your lifetime.

What happens when you delay claiming past full retirement age

For every year you delay claiming past your full retirement age, your payment increases by approximately 8 percent per year. This increase, called delayed retirement credits, continues until age 70. After 70, the increases stop, so there is no financial benefit to waiting longer.

If your full retirement age is 67 and you delay until 70, your payment at 70 will be about 24 percent higher than it would have been at 67. Over a 20-year period from age 70 to 90, this larger payment can result in significantly more total benefits received, even though you collected nothing during those three years of delay.

Delaying makes sense if you are in good health, have family longevity, or have other income to live on. It also makes sense if you are married and your spouse will receive a survivor benefit based on your record, because the higher payment also means a higher survivor benefit. The trade-off is that you receive no income from Social Security during the delay years.

How your earnings record affects your payment

Social Security bases your payment on what you actually earned, as reported to the SSA through payroll taxes. Self-employed people report earnings on their tax returns. If you worked under the table or your employer did not report your wages correctly, those years may not count toward your benefit.

You can view your earnings record on your Social Security Statement at ssa.gov. The statement shows your reported earnings for each year since you started working. If you spot an error — a year with no earnings when you know you worked, or earnings that seem too low — you can contact the SSA with documentation like old tax returns or W-2 forms to request a correction. The SSA can correct errors going back three years, three months, and 15 days from the current date.

If you have very low earnings in some years, you might be able to request that the SSA exclude certain years from your calculation, though this is rare and requires specific circumstances. Most people cannot change which years are included in the calculation.

How dependents and survivors affect your payment

If you have a spouse or minor children, they may be able to receive benefits based on your Social Security record. These payments do not reduce your own payment, but they do count toward a family maximum — a limit on the total amount the SSA will pay to all family members on your record. The family maximum is typically 150 to 180 percent of your Primary Insurance Amount, though the exact percentage varies.

If you die, your spouse, children, and dependent parents may receive survivor benefits based on your earnings record. The amount each survivor receives depends on their relationship to you and their age. A surviving spouse at full retirement age receives 100 percent of your Primary Insurance Amount; a surviving spouse caring for a child under 16 receives 75 percent; and each child receives 75 percent. These payments are also subject to the family maximum.

Your payment amount itself does not change because you have dependents, but knowing that others may receive benefits on your record can affect when you decide to claim. If you die before claiming, your family still receives survivor benefits, which is one reason some people delay claiming — to increase the survivor benefit for their family.

Where to find your personalized payment estimate

The most accurate way to see what you might receive is to create a my Social Security account at ssa.gov. 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 Social Security Statement, which shows your earnings history and provides payment estimates at three claiming ages: 62, full retirement age, and 70.

These estimates assume you continue working and earning at your current rate until you claim. If your earnings change significantly, the estimate will change. The SSA updates your statement once per year, usually in September, to reflect your most recent earnings.

If you do not have internet access or prefer to speak with someone, you can call the Social Security Administration at 1-800-772-1213 (TTY 1-800-325-0778) to request a paper statement or to discuss your payment estimate. Wait times can be long, especially early in the week and early in the month.

Frequently Asked Questions

Can I see what I will get before I claim?

Yes. Log into your my Social Security account at ssa.gov to view your Social Security Statement, which shows estimates at ages 62, full retirement age, and 70. These estimates are based on your actual earnings record and assume you continue working at your current rate. The estimates update once per year.

What if I have years with no income or very low income?

The SSA includes your 35 lowest-earning years in the calculation, even if some years show zero income. Gaps in work history lower your average and reduce your payment. You cannot remove specific years from the calculation, but you can view your earnings record on ssa.gov to confirm it is accurate and request corrections if needed.

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

If you claim before full retirement age and earn above the annual limit (about $23,400 in 2024), the SSA withholds $1 in benefits for every $2 you earn above that amount. Once you reach full retirement age, the earnings limit no longer applies. If you delay claiming, your payment continues to increase by about 8 percent per year until age 70.

How much more will I get if I wait until 70 to claim?

If you delay from full retirement age (67) until age 70, your payment increases by approximately 24 percent. The exact increase depends on your birth year. Over a 20-year period from age 70 to 90, the larger payment can result in significantly more total benefits, but you receive nothing during the three-year delay.

What if I think my earnings record has an error?

Contact the SSA with documentation like old tax returns or W-2 forms showing your actual earnings. The SSA can correct errors going back three years, three months, and 15 days from the current date. You can call 1-800-772-1213 or visit your local Social Security office to request a correction.