Your benefit amount depends on your earnings history and the age you start

Social Security calculates your monthly benefit based on how much you earned during your working years — specifically, your 35 highest-earning years. The older you are when you start taking benefits, the larger your monthly payment will be. If you start at your full retirement age (which ranges from 66 to 67 depending on your birth year), you receive your "primary insurance amount" — the standard benefit the government calculated for you. If you start earlier, at 62, your benefit is permanently reduced. If you delay past your full retirement age, your benefit grows by about 8 percent per year until age 70.

The Social Security Administration (SSA) does not publish a single dollar amount that applies to everyone. Your specific benefit depends entirely on your work record. The average monthly benefit in 2024 is around $1,900 for a retired worker, but that figure masks enormous variation — some people receive $800 a month, others receive $3,800 or more.

Key Takeaways

  • Your benefit amount is based on your 35 highest-earning years of work, so gaps in employment or lower-wage years reduce your total.
  • Starting benefits at 62 gives you a smaller monthly payment than waiting until 66 or 67, and that reduction is permanent.
  • Delaying benefits past your full retirement age increases your monthly payment by roughly 8 percent per year until you turn 70.
  • You can see your personalized benefit estimate by creating a my Social Security account on ssa.gov, which shows what you would receive at different ages.
  • If you worked for a government employer and did not pay Social Security taxes, the Windfall Elimination Provision may reduce your benefit.

How the SSA calculates your primary insurance amount

The Social Security Administration uses a three-step formula. First, they identify your 35 highest-earning years (adjusted for inflation). If you worked fewer than 35 years, they count zeros for the missing years, which lowers your average. Second, they calculate your average indexed monthly earnings by dividing your total by 420 months. Third, they explore a bend-point formula that replaces a higher percentage of your first dollars earned and a lower percentage of your later dollars — this is why lower-wage workers receive a larger percentage of their pre-retirement income than higher-wage workers do.

The bend points change every year. In 2024, the formula replaced 90 percent of your first $1,174 in average monthly earnings, 32 percent of earnings between $1,174 and $7,078, and 15 percent of earnings above $7,078. These numbers shift annually based on national wage trends. The result of this three-step calculation is your primary insurance amount, or PIA — the benefit you receive if you claim at your full retirement age.

What happens if you claim at 62 versus waiting until 70

Claiming at 62 reduces your benefit by roughly 30 percent compared to your full retirement age amount. The exact reduction depends on your birth year, but the reduction is permanent — you will never receive the higher amount, even if you live to 100. The advantage is that you start receiving money when ready and can collect for more years overall. The disadvantage is that your monthly check is smaller for life.

Waiting until your full retirement age (66 or 67) gives you your full primary insurance amount. Waiting until 70 increases your benefit by about 24 to 32 percent above your full retirement age amount, depending on your birth year. At 70, your benefit stops growing. The trade-off is that you receive nothing until age 70, but your monthly payment is substantially higher if you live into your 80s or beyond. Actuarial data shows that people who live past 80 typically come out ahead by waiting, while people who die before 80 typically come out ahead by claiming early.

How to find your personalized benefit estimate

The fastest way to see what you might receive is to create a my Social Security account on 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). Once you log in, you can view your earnings record, check that it is accurate, and see your estimated benefit at ages 62, full retirement age, and 70.

If you do not want to create an online account, you can request a benefit estimate by mail. Call the Social Security Administration at 1-800-772-1213 (TTY 1-800-325-0778) and ask them to mail you a Social Security Statement. The statement shows your earnings history and estimated benefits at different claiming ages. Processing takes about two weeks.

Your estimate assumes you will continue working until you claim and that your earnings will stay roughly the same. If you plan to retire early or expect your income to change significantly, your actual benefit may differ from the estimate.

How your benefit changes if you were a government employee

If you worked for a federal, state, or local government and did not pay Social Security taxes on that income, the Windfall Elimination Provision may reduce your Social Security benefit. This rule applies if you also have a pension from that government job. The reduction can be as much as half of your government pension, though the SSA caps the total reduction at a percentage of your primary insurance amount (the exact cap changes yearly).

The Government Pension Offset works differently and affects spouses and widows. If you receive a government pension and are also may have access to to a benefit as a spouse or widow, the offset reduces your spousal or widow benefit by two-thirds of your government pension amount.

You can find out whether these rules explore to you by reviewing your my Social Security account or by calling the SSA directly. If you worked for multiple employers — some government, some private — the rules may explore only to the portion of your benefit tied to government work.

How your benefit is affected by continued work

If you claim benefits before your full retirement age and continue to work, the SSA will reduce your benefit by $1 for every $2 you earn above an annual limit. In 2024, that limit is $23,400. The year you reach your full retirement age, the reduction changes to $1 for every $3 earned above a higher limit (in 2024, $62,160), and only earnings before the month you reach full retirement age count. Once you reach your full retirement age, there is no earnings limit — you can work and receive your full benefit.

This earnings test is temporary. The reduction does not lower your permanent benefit amount; it only delays some of your payments. When you reach your full retirement age, the SSA recalculates your benefit to account for the months you did not receive a payment, and your monthly amount increases to compensate.

How cost-of-living adjustments affect your benefit over time

Every year, the SSA adjusts benefits for inflation using the Cost-of-Living Adjustment, or COLA. The adjustment is based on the Consumer Price Index and is applied to all benefits in December, with the new amount starting in January. In recent years, adjustments have ranged from 0 percent (in years with no inflation) to 8.7 percent (in 2023). The adjustment applies to your primary insurance amount, so it compounds year after year.

You do not have to do anything to receive the COLA — it is automatic. If you are already receiving benefits, the new amount appears in your January payment. If you have not yet claimed, the COLA is built into your benefit estimate when you do claim.

Frequently Asked Questions

Can I see what I will receive before I claim?

Yes. Log into your my Social Security account on ssa.gov to view your personalized estimate at ages 62, full retirement age, and 70. You can also call 1-800-772-1213 and request a Social Security Statement by mail. Both show your earnings record and estimated benefits based on your work history.

What if I have gaps in my work history?

The SSA uses your 35 highest-earning years. If you worked fewer than 35 years, they count zeros for the missing years, which lowers your average earnings and reduces your benefit. Even one or two additional years of work can raise your average and increase your benefit.

Does my spouse get a separate benefit?

Yes, if your spouse is at least 62 and married to you for at least one year (or is caring for your child under 16). Your spouse can receive up to 50 percent of your primary insurance amount, though their own work record may result in a higher benefit. The spousal benefit is calculated separately and does not reduce your payment.

What if I claim early and then change my mind?

If you claim before your full retirement age, you can withdraw your claim within 12 months, repay all benefits you received, and claim again later at a higher amount. After 12 months, you cannot withdraw. You can also suspend your benefits at full retirement age to let them grow, though this is less common now due to rule changes.

How much will my benefit be in the future?

Your estimate assumes your earnings stay the same and you claim at a specific age. If you earn more before you claim, your benefit will be higher. The SSA also adjusts all benefits yearly for inflation (COLA), so your actual payment will increase over time even if you do not earn more.