Your Social Security payment depends on your work history and when you start
The amount you receive from Social Security is based on how much you earned during your working years and at what age you claim. There is no fixed payment that everyone gets. Someone who worked 40 years at higher wages will receive more than someone who worked 20 years at lower wages. If you claim at 62, your monthly check will be smaller than if you wait until 67 or 70.
Social Security calculates your payment using your highest 35 years of earnings. The formula is not straightforward, but the basic idea is straightforward: more years of work and higher earnings mean a larger check. The Social Security Administration (SSA) has already done this calculation for you and has a record of what you would receive at different ages.
Key Takeaways
- Your payment amount is based on your actual earnings record, not a standard amount, so two people the same age can receive very different checks.
- You can see your estimated payment at different ages by creating a my Social Security account at ssa.gov or calling 1-800-772-1213.
- Claiming at 62 gives you a smaller monthly payment than waiting until your full retirement age, which is typically 66 or 67 depending on your birth year.
- Waiting until age 70 increases your monthly payment by about 8 percent for each year you delay past your full retirement age.
- Your payment amount does not change once you start receiving it, except for annual cost-of-living adjustments that usually happen in January.
How SSA calculates your payment amount
The Social Security Administration looks at your earnings record from age 21 onward. They take your highest 35 years of earnings and adjust them for inflation so that wages from 1985 are compared fairly to wages from 2020. If you worked fewer than 35 years, they count zeros for the missing years, which lowers your average.
Once they have your average, they explore a formula that gives you a larger percentage of your lower earnings and a smaller percentage of your higher earnings. This is why Social Security replaces a bigger share of income for lower-wage workers than for higher-wage workers. A person who earned $30,000 a year might get 50 percent of that in benefits, while a person who earned $150,000 might get only 30 percent.
The result of this formula is called your Primary Insurance Amount, or PIA. This is the payment you would receive if you claim at your full retirement age. If you claim earlier or later, SSA adjusts this amount up or down.
What your age at claim affects
The age you choose to start Social Security changes your monthly payment permanently. If your full retirement age is 67 and you claim at 62, your payment is reduced by about 30 percent. If you wait until 70, your payment increases by about 24 percent compared to what you would get at 67.
This is not a choice between getting the same amount sooner or later. It is a choice between a smaller check every month for a longer time, or a larger check every month for a shorter time. The break-even point — where the total amount received is equal — is usually around age 80 or 81. If you live past that age, waiting to claim will have given you more total money.
Your full retirement age depends on the year you were born. For people born between 1943 and 1954, it is 66. For people born between 1955 and 1960, it rises gradually from 66 and 2 months to 67. For people born in 1960 or later, it is 67.
How to find out your specific payment amount
The fastest way to see what you would 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. Once you log in, you can see your earnings record and your estimated payment at ages 62, your full retirement age, and 70.
If you do not want to create an online account, you can call Social Security at 1-800-772-1213 and speak to a representative. They can tell you your estimated payment amounts and answer questions about how your work history affects your benefits. The phone line is open Monday through Friday, 7 a.m. to 7 p.m. Eastern time. Wait times are usually shorter early in the morning.
You can also visit your local Social Security office in person. Find the nearest one at ssa.gov/locator. Bring your Social Security card and a photo ID. An employee there can review your earnings record with you and discuss your options.
Cost-of-living adjustments and how your payment changes
Once you start receiving Social Security, your monthly payment stays the same except for annual cost-of-living adjustments, called COLAs. These adjustments happen once a year, usually announced in October and effective in January. The adjustment is based on inflation and is the same percentage for everyone receiving benefits that year.
In recent years, COLAs have ranged from less than 1 percent to more than 8 percent, depending on inflation. The adjustment is automatic — you do not have to do anything to receive it. Your new payment amount will appear in your January check or direct deposit.
If you are still working when you claim Social Security before your full retirement age, there is an earnings limit. In 2024, if you earn more than $23,400 per year, Social Security reduces your benefit by $1 for every $2 you earn above that limit. This reduction stops once you reach your full retirement age.
How marriage and divorce affect your payment
If you are married, you may be able to receive a payment based on your spouse's earnings record if that amount is higher than what you would get based on your own record. This is called a spousal benefit. You must be at least 62 and married for at least one year. Your spousal benefit is typically up to 50 percent of what your spouse receives at their full retirement age.
If you are divorced, you may also be able to claim on your ex-spouse's record if you were married for at least 10 years, you are at least 62, and you are not currently married. You do not need your ex-spouse's permission, and claiming on their record does not reduce their payment.
If you are widowed, you may receive a survivor benefit based on your deceased spouse's earnings record. The amount depends on your age when you claim and your relationship to the person who died. Widow and widower benefits can be as much as 100 percent of what the deceased person was receiving or would have received.
Taxes on your Social Security income
Depending on your total income, you may have to pay federal income tax on part of your Social Security benefits. This is not a tax on the benefits themselves, but rather a tax that applies if your income exceeds certain thresholds. For a single person, if your combined income (adjusted gross income plus half your Social Security benefits) is more than $25,000, you may owe tax on up to 50 percent of your benefits. If it is more than $34,000, you may owe tax on up to 85 percent.
For married couples filing jointly, the thresholds are $32,000 and $44,000. Some states also tax Social Security benefits, though most do not. You can find out whether your state taxes benefits by contacting your state tax agency.
When you start receiving Social Security, SSA will send you a form showing how much you received that year. You can use this to figure out whether you owe tax. Many people find it helpful to have taxes withheld from their Social Security check so they do not owe a large amount at tax time.
Frequently Asked Questions
What is the average Social Security payment?
The average payment varies by age and work history. As of 2024, the average payment for a retired worker is around $1,900 per month, but this includes people who worked many years at various wage levels. Your personal payment could be significantly higher or lower depending on your earnings record.
Can I get a larger payment if I work longer?
Yes. Social Security uses your highest 35 years of earnings. If you work additional years at higher wages than some of your earlier years, those higher earnings can replace lower-earning years in the calculation, which increases your payment. You must have at least 40 work credits to receive benefits at all.
What happens to my payment if I go back to work after I claim?
If you claim before your full retirement age and earn more than the annual limit, Social Security reduces your benefit. Once you reach your full retirement age, there is no earnings limit and your payment will not be reduced no matter how much you earn. Your payment may also increase if your new earnings are higher than some of your earlier years.
Is there a maximum Social Security payment?
Yes. There is a maximum benefit amount that changes each year based on the wage index. In 2024, the maximum benefit for someone claiming at full retirement age is around $3,800 per month. You reach this maximum only if you had very high earnings throughout your career and claimed at or after your full retirement age.
Do I need to report my income to Social Security?
If you are still working and claimed Social Security before your full retirement age, you should report your earnings to Social Security so they can adjust your payment correctly if needed. You can report earnings online at ssa.gov, by phone, or by mail. If you are at or past your full retirement age, you do not need to report earnings.