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

Social Security calculates your monthly payment based on how much you earned during your working years and when you claim. The Social Security Administration (SSA) looks at your 35 highest-earning years, adjusts them for inflation, and uses a formula to arrive at your Primary Insurance Amount (PIA) — the benefit you receive at your full retirement age.

If you claim before full retirement age, your payment is reduced. If you delay past full retirement age, your payment increases. The same earnings record produces different monthly amounts depending on which age you choose to start.

No two people receive the same benefit unless they had identical earnings histories and claim at the same age. The SSA does not publish a straightforward table that shows "if you earned this much, you get this much." Instead, you can see your own projected amounts by creating an account on ssa.gov.

Key Takeaways

  • Your benefit is based on your 35 highest-earning years, adjusted for inflation, and run through a formula that produces your Primary Insurance Amount.
  • Claiming at 62 (the earliest age) reduces your benefit by roughly 30 percent compared to claiming at full retirement age, which ranges from 66 to 67 depending on your birth year.
  • Delaying your claim past full retirement age increases your benefit by 8 percent per year until age 70, when increases stop.
  • You can see your own projected benefit amounts at different ages by creating a my Social Security account on ssa.gov.
  • Spousal and survivor benefits are calculated separately from your own benefit and may be available even if you did not work long enough to receive your own.

How the SSA calculates your Primary Insurance Amount

The SSA starts by looking at your Average Indexed Monthly Earnings (AIME). This is your average monthly income from your 35 highest-earning years, adjusted so that wages from earlier decades are brought up to current wage levels. If you worked fewer than 35 years, the SSA counts the missing years as zero, which lowers your average.

Once the SSA has your AIME, it applies a three-part formula called the Primary Insurance Amount bend points. The formula takes a percentage of your AIME up to a certain dollar amount, then a smaller percentage of earnings above that, and an even smaller percentage of earnings above a second threshold. These thresholds change each year based on national wage growth.

The result is your PIA — the amount you would receive if you claimed at your full retirement age. This is the foundation for all other benefit calculations. If you claim early, it is reduced. If you delay, it is increased. If you are a spouse or survivor, the SSA calculates your benefit as a percentage of the worker's PIA.

What happens if you claim before full retirement age

Full retirement age is 66 for people born between 1943 and 1954, and it rises gradually to 67 for people born in 1960 or later. If you claim at 62, your benefit is reduced by roughly 30 percent. If you claim at 63, the reduction is smaller. The exact reduction depends on your birth year and the number of months between age 62 and your full retirement age.

The reduction is permanent. Even after you reach full retirement age, your benefit does not increase to what it would have been if you had waited. You receive the reduced amount for the rest of your life. This matters most if you live a long time — claiming early makes sense only if you need the money now or if you do not expect to live into your mid-80s.

One exception: if you claim before full retirement age while still working, the SSA withholds part of your benefit if your earnings exceed a certain limit. In 2024, the limit is $23,400 per year. For every $2 you earn above that, the SSA withholds $1 of your benefit. Once you reach full retirement age, the withholding stops, even if you keep working.

What happens if you delay past full retirement age

For every year you delay claiming past your full retirement age, your benefit increases by 8 percent per year. This increase continues until age 70. After 70, there is no further increase, so there is no financial reason to delay past that age.

If your full retirement age is 67 and you delay until 70, your benefit at 70 is roughly 24 percent higher than it would have been at 67. Over a long retirement, this compounds significantly. Someone who lives to 90 and delayed from 67 to 70 will have received more total lifetime benefits than someone who claimed at 67, even though they started receiving payments three years later.

Delaying makes the most sense if you are in good health, have family longevity, or do not need the money yet. It is less attractive if you have health problems or need the income now.

How to see your own projected benefit amounts

The fastest way to see what you might receive is to create a my Social Security account at ssa.gov. You will need an email address and a phone number. Once you are logged in, you can view your earnings record and see your projected benefit amounts at different ages — 62, full retirement age, and 70.

These projections assume you continue working at your current pace until you claim. If you plan to retire early or work longer, the amounts will change. The SSA updates your record each year after you file taxes, so your projections become more accurate over time.

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) and request a benefit estimate. Wait times are often long, especially early in the week and early in the month.

Spousal and survivor benefits

If you are married, you may be may have access to to a benefit based on your spouse's earnings record, even if you did not work or worked very little. A spousal benefit is typically up to 50 percent of your spouse's Primary Insurance Amount, but only if you claim at your full retirement age. If you claim earlier, the amount is reduced further.

Survivor benefits work the same way. If your spouse dies, your children (up to age 19 if still in high school) and you may receive benefits based on their earnings record. A surviving spouse at full retirement age can receive up to 100 percent of what the worker would have received. Children typically receive 75 percent each, though the total paid to all family members is capped at roughly 150 to 180 percent of the worker's benefit.

To receive spousal or survivor benefits, you must be at least 62 (or any age if you are caring for a child under 16). The SSA does not automatically pay these benefits — you must contact them and request them.

Government Pension Offset and Windfall Elimination Provision

Two rules can reduce your Social Security benefit if you also receive a pension from work not covered by Social Security — typically government employment.

The Windfall Elimination Provision (WEP) reduces your own Social Security benefit if you receive a government pension. The reduction can be up to 50 percent of your pension amount, though the exact reduction depends on your birth year and how many years you worked in covered employment. The reduction does not explore if you were born before 1924 or if you worked 30 or more years in covered employment.

The Government Pension Offset (GPO) reduces spousal and survivor benefits by two-thirds of your government pension. If your government pension is $1,500 per month, your spousal benefit is reduced by $1,000. This can eliminate your spousal benefit entirely if your pension is large enough.

If either rule affects you, the SSA will explain the reduction when you claim. You can contact the SSA to learn whether your specific pension triggers these rules.

Frequently Asked Questions

Can I find out my benefit amount without creating an online account?

Yes. Call the SSA at 1-800-772-1213 and ask for a benefit estimate. You can also visit a local Social Security office in person. Both methods take longer than using the online account, but they work if you do not have internet access or prefer to speak with someone directly.

What if I worked in another country — does that count toward my benefit?

It depends on whether that country has a Social Security agreement with the United States. The SSA has agreements with about 30 countries. If you worked in one of them, those earnings may count. Contact the SSA or visit ssa.gov to see the full list of countries and how to report foreign earnings.

Does my benefit change after I start receiving it?

Your benefit amount stays the same unless you return to work before full retirement age (which may trigger earnings withholding) or unless the SSA makes a correction to your earnings record. Once a year, the SSA adjusts all benefits for inflation using the Cost of Living Adjustment (COLA). This increase is automatic and applies to everyone receiving benefits.

What if I made a mistake on my process — can I change my claim age?

If you claimed within the last 12 months, you can withdraw your process and reclaim at a later age. The SSA will return all benefits you received, and you can restart your claim when you choose. After 12 months, you cannot withdraw, but you can contact the SSA to discuss other options depending on your situation.

How much can I earn before my benefit is reduced?

If you claim before full retirement age and continue working, the SSA withholds $1 of your benefit for every $2 you earn above the annual limit. In 2024, the limit is $23,400 per year. The limit changes each year. Once you reach full retirement age, you can earn as much as you want without any reduction to your benefit.