Your payment depends on your earnings history, the age you start, and whether you've worked long enough

Social Security calculates your benefit by looking at your 35 highest-earning years of work. The longer you worked and the more you earned, the larger your payment will be. If you worked fewer than 35 years, zeros are counted for the missing years, which lowers your total.

The age you claim also changes your payment amount significantly. If you claim at 62, your payment is smaller than if you wait until 67 or 70. The Social Security Administration calls your "full retirement age" the point at which you get your full benefit — this age is 66, 67, or somewhere in between, depending on your birth year. Claiming before that age means a permanent reduction. Claiming after means a permanent increase.

You can see your own estimated payment by creating a my Social Security account at ssa.gov. This account shows your actual earnings record and gives you a personalized estimate based on your real work history, not a general average.

Key Takeaways

  • Your payment amount is based on your 35 highest-earning years; years you didn't work count as zeros and reduce your total.
  • Claiming at 62 gives you a smaller monthly payment than waiting until your full retirement age or later.
  • You can see your personalized estimate by logging into my Social Security at ssa.gov, which uses your actual earnings record.
  • The Social Security Administration mails a statement to people who don't have an online account, though the online version is more current.

How Social Security calculates your benefit amount

Social Security uses a formula that starts with your average earnings over your 35 highest-earning years. The agency adjusts older earnings for inflation so that a dollar you earned in 1990 is counted fairly against a dollar you earned in 2020. This adjusted total is divided by the number of months you worked to get your average monthly earnings.

That average is then run through a bend point formula, which replaces a higher percentage of lower earnings than higher earnings. This means someone who earned $30,000 a year gets a larger percentage of their earnings replaced than someone who earned $150,000 a year. The result is your primary insurance amount, or PIA — the payment you would receive if you claimed at your full retirement age.

The bend points change each year based on national wage trends. Because of this, two people born in the same year but with different earnings histories will have different benefit amounts, even if they claim at the same age.

How your birth year affects your full retirement age

Congress set different full retirement ages for different birth years. If you were born between 1943 and 1954, your full retirement age is 66. If you were born between 1955 and 1960, it falls somewhere between 66 and 67. If you were born in 1960 or later, your full retirement age is 67.

Your full retirement age is the point at which you receive your full benefit — neither reduced nor increased. Claiming before this age reduces your payment by a percentage that depends on how many months early you claim. Claiming after this age increases your payment by roughly 8 percent per year until age 70, when the increase stops.

You can find your exact full retirement age on the Social Security Administration's website or in your my Social Security account. If you're unsure, calling Social Security at 1-800-772-1213 will give you the answer in minutes.

What happens if you didn't work 35 years

If you worked fewer than 35 years, Social Security counts the missing years as zeros. For example, if you worked 30 years, five years of zero earnings are included in the calculation, which lowers your average and your benefit amount.

However, you do not need 35 years of work to receive Social Security. You need only 10 years (40 work credits) to be insured — meaning you meet the basic requirement to receive a retirement benefit. The 35-year calculation applies only to how much you receive, not whether you can receive it.

If you're close to 35 years of work, continuing to work a few more years can raise your benefit, because Social Security drops your lowest-earning years and replaces them with your current (usually higher) earnings. You can see how much your benefit would increase by working longer in your my Social Security account.

How claiming age changes your monthly payment

Claiming at 62 instead of your full retirement age reduces your payment by roughly 25 to 30 percent, depending on your birth year. The exact reduction is listed in your my Social Security account. For example, if your full benefit at age 67 would be $1,500 per month, claiming at 62 might give you about $1,050 per month instead.

Claiming after your full retirement age increases your payment. For each year you delay between your full retirement age and 70, your payment grows by about 8 percent per year. If you wait from 67 to 70, your payment would be roughly 24 percent higher. After age 70, the increase stops, so there is no financial benefit to waiting longer.

The trade-off between claiming early and claiming late depends on how long you live and how much money you need now versus later. Someone in poor health might benefit from claiming at 62. Someone in good health with savings might benefit from waiting. Your my Social Security account shows you the payment amount at different ages so you can compare.

How to find your estimated benefit

The fastest way to see your personalized estimate is to create a my Social Security account at ssa.gov. You'll need your Social Security number, email address, and a way to verify your identity (usually a phone number or bank account). Once logged in, you can see your earnings record, check for errors, and view your estimated benefit at different claiming ages.

If you don't have an online account, the Social Security Administration mails a statement to people age 60 and older who don't have one. The mailed statement shows your estimated benefit at your full retirement age, but the online account gives you estimates at multiple ages and is updated more frequently.

If you find an error in your earnings record — a year where you earned money but it's not showing, or an amount that looks wrong — you can correct it through your my Social Security account or by calling 1-800-772-1213 with your tax records handy. Corrections can significantly change your benefit amount, so it's worth checking before you claim.

What affects your payment after you start receiving it

Once you start receiving Social Security, your payment is adjusted each year for cost-of-living increases, or COLA. The Social Security Administration calculates COLA based on inflation and applies it to all beneficiaries' payments in January. In years with no inflation, there is no COLA increase.

If you continue working after you claim Social Security before your full retirement age, your benefit may be temporarily reduced. Social Security withholds $1 in benefits for every $2 you earn above an annual limit (the limit changes each year). Once you reach your full retirement age, this earnings limit no longer applies, and your full benefit resumes. The withheld amount is not lost — Social Security recalculates your benefit at your full retirement age to account for the months you didn't receive a payment, which increases your monthly amount going forward.

Frequently Asked Questions

Can I see what I'll get if I claim at different ages?

Yes. Your my Social Security account shows your estimated payment at age 62, your full retirement age, and age 70. These are estimates based on your current earnings record and assume you continue working until you claim. If your earnings change significantly before you claim, the estimate will adjust.

What if there's an error in my earnings record?

Errors can lower your benefit significantly. You can view your complete earnings record in your my Social Security account and report mistakes through the same account or by calling 1-800-772-1213. Bring tax records or W-2s to prove the correct amount. Social Security has a important date for correcting old earnings, so don't delay if you spot an error.

Does my spouse's earnings affect my benefit?

No. Your benefit is based only on your own earnings record. However, if you were married for at least 10 years, you may be able to receive a benefit based on your ex-spouse's record, or your current spouse may be able to receive a benefit based on yours. These are separate calculations and don't reduce your own benefit.

Will my benefit be enough to live on?

Social Security is designed to replace about 40 percent of pre-retirement earnings for an average worker. Most financial advisors suggest you'll need 70 to 80 percent of your pre-retirement income to maintain your lifestyle. Your my Social Security account shows your estimated benefit so you can compare it to your expected expenses and plan accordingly.

When should I claim — at 62 or later?

This depends on your health, savings, and how long you expect to live. Claiming at 62 gives you money sooner but a smaller monthly amount. Waiting until 70 gives you a larger monthly amount but you receive fewer total payments if you die early. Your my Social Security account shows the payment at each age, which can help you decide based on your situation.