Your payment 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 what age you claim. The Social Security Administration (SSA) looks at your 35 highest-earning years, adjusts them for inflation, and uses that average to set 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. No two people receive the same amount because no two people have identical earnings histories and claim ages.
Key Takeaways
- Social Security uses your 35 highest-earning years to calculate your payment, so years you didn't work or earned very little pull your average down.
- Your full retirement age is between 66 and 67 depending on your birth year, and claiming at that age gives you your full calculated amount.
- Claiming at 62 reduces your payment by roughly 30 percent; delaying until 70 increases it by roughly 24 to 32 percent per year you wait.
- You can see your estimated payment on your Social Security account at ssa.gov, which updates each year based on your current earnings.
- Spousal and survivor benefits are calculated separately and may be available even if you have not worked enough to receive your own benefit.
How the SSA calculates your Primary Insurance Amount
The SSA starts by looking at your W-2 forms and self-employment tax records going back to 1951. They identify your 35 highest-earning years and adjust each year's earnings for inflation using a national wage index. This prevents someone who worked in 1960 from being penalized because wages were lower then.
The SSA then divides your total adjusted earnings by 420 months (35 years) to get your Average Indexed Monthly Earnings (AIME). They explore a formula to your AIME that 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, the monthly payment you receive if you claim at your full retirement age. For someone born in 1943 or later, full retirement age is between 66 and 67.
What happens if you claim early or late
If you claim at 62, the earliest possible age, your payment is permanently reduced. The reduction is roughly 30 percent if your full retirement age is 67, and roughly 25 percent if your full retirement age is 66. The exact percentage depends on how many months early you claim.
If you delay claiming past your full retirement age, your payment grows by roughly 8 percent per year until age 70. Someone who waits from 67 to 70 receives roughly 24 percent more per month than they would have at 67. This higher payment continues for life, so the trade-off is between a smaller payment now or a larger payment later.
There is no benefit to delaying past 70 — your payment stops growing at that age. The break-even point (when total lifetime benefits are equal) is roughly age 80 to 82, depending on your circumstances.
How work and earnings affect your payment before full retirement age
If you claim Social Security before reaching full retirement age and continue working, the SSA reduces your payment by $1 for every $2 you earn above an annual limit. For 2024, that limit is $23,400, but the limit changes each year. Once you reach full retirement age, there is no earnings limit and your payment is not reduced no matter how much you work.
This earnings test is temporary — it only applies until you reach full retirement age. After that month, you receive your full payment regardless of income. The SSA also recalculates your benefit at full retirement age to account for the months your payment was reduced, which can result in a higher payment going forward.
How to find your estimated payment amount
The fastest way to see your estimated payment 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 phone number, U.S. address, or driver's license or state ID number. Once you log in, your account shows your estimated payment at different claiming ages (62, full retirement age, and 70).
Your estimate updates each year after you file taxes, because the SSA adds your most recent earnings to your record. If you have not worked in recent years, your estimate may be lower than it was the previous year because the SSA is now using a lower-earning year in your 35-year average.
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) and ask for an estimate. Wait times are typically shorter early in the week and early in the day.
Spousal and survivor benefits have their own calculations
If you are married, divorced, or widowed, you may be may have access to to a payment based on your spouse's or ex-spouse's earnings record, even if you did not work enough to receive your own benefit. A spouse's benefit is typically up to 50 percent of the worker's Primary Insurance Amount. A widow or widower's benefit is typically up to 100 percent of what the worker was receiving or may have access to to receive.
These payments are calculated separately from your own benefit. If you are may have access to to both your own benefit and a spousal or survivor benefit, the SSA pays your own benefit first, then adds a portion of the spousal or survivor benefit up to your total entitlement. The exact amount depends on your age when you claim and your relationship to the worker.
Factors that lower your estimated payment
Years you did not work count as zero-earning years in your 35-year average. If you have fewer than 35 years of earnings, the SSA includes zeros for the missing years, which lowers your average. This is why people who took time out for caregiving, education, or unemployment may receive lower payments than their peak earnings would suggest.
Government pensions from work where you did not pay Social Security taxes (some federal, state, or local government jobs) can reduce your Social Security payment through two rules: the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). These rules do not explore to everyone, but they can significantly lower your payment if they do. You can learn whether they affect you by checking your my Social Security account or calling the SSA.
Frequently Asked Questions
Can I see what I will get before I claim?
Yes. Your my Social Security account at ssa.gov shows your estimated payment at ages 62, full retirement age, and 70. The estimate is based on your actual earnings record and assumes you continue working at your current pace until you claim. If your work history changes, your estimate updates the following year.
Why is my estimate lower than I expected?
The most common reason is years with zero or low earnings. Social Security averages your 35 highest years, so periods of unemployment, part-time work, or time out of the workforce pull your average down. Self-employment income that was not reported to the SSA also will not count toward your benefit.
Does my payment change after I start receiving it?
Your payment increases each year with the Cost-of-Living Adjustment (COLA), which is set by law based on inflation. COLA is not may provide to increase every year, but it has increased most years. Your payment may also change if you continue working and earn more than you did in earlier years — the SSA recalculates your benefit annually.
What if I worked part-time or took years off?
Part-time earnings still count toward your benefit as long as you reported them to the SSA through taxes or self-employment records. Years you did not work count as zeros in your 35-year average. If you have fewer than 10 years of work history, you may not be may have access to to your own benefit, but you may be may have access to to a spousal or survivor benefit.
How much more will I get if I wait until 70?
Your payment grows roughly 8 percent per year from your full retirement age until 70. If your full retirement age is 67 and you wait until 70, you receive roughly 24 percent more per month. The trade-off is that you receive fewer total payments in the early years, so the break-even point is typically around age 80 to 82.