Your benefit is based on your earnings history and the age you start collecting

Social Security calculates your monthly benefit from two things: 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 averages them to find your Primary Insurance Amount (PIA). This is the benefit you would receive at your full retirement age — the age when you become may have access to to 100 percent of what you earned.

If you claim before your full retirement age, your monthly check is smaller. If you delay claiming past your full retirement age, your monthly check is larger. The SSA sends you a statement showing your estimated benefit at different ages so you can see the trade-off between claiming sooner and receiving less per month, or waiting longer and receiving more per month.

Your full retirement age depends on the year you were born. For people born in 1943 or later, it ranges from 66 to 67. You can claim as early as 62, but your benefit will be permanently reduced. You can delay until 70, and your benefit will be permanently increased.

Key Takeaways

  • Your benefit amount comes from your 35 highest-earning years, adjusted for inflation and averaged together.
  • Your full retirement age — when you get your full benefit — is 66 or 67 depending on your birth year.
  • Claiming at 62 gives you a smaller monthly check for a longer time; claiming at 70 gives you a larger monthly check for a shorter time.
  • You can see your estimated benefit at different ages on your Social Security statement, which you can view online at ssa.gov or request by mail.
  • If you did not work 35 years, zeros are counted in your average, which lowers your benefit amount.

How the SSA counts your working years

Social Security uses your 35 highest-earning years to calculate your benefit. If you worked fewer than 35 years, the SSA counts the missing years as zeros. This means every year you did not work lowers your average, and therefore lowers your benefit. If you worked 30 years, five zeros are included in the calculation.

The SSA does not count all earnings equally. It adjusts your older earnings for inflation so they are comparable to more recent years. For example, $20,000 you earned in 1990 is adjusted upward to reflect what that amount would be worth today. This way, your benefit reflects your lifetime earning power in today's dollars, not the actual dollar amounts you made decades ago.

You need 40 work credits to be may have access to to Social Security retirement benefits. You earn credits by paying Social Security taxes on your wages. In 2024, you earn one credit for every $1,705 you earn, up to four credits per year. Most people earn their 40 credits over 10 years of work, though the years do not have to be consecutive.

What your full retirement age means

Your full retirement age is when you become may have access to to your full benefit — 100 percent of what your earnings history supports. This age is not 65 for everyone. The SSA raised it gradually for people born after 1942.

If you were born between 1943 and 1954, your full retirement age is 66. If you were born between 1955 and 1960, it is between 66 and 67, depending on your birth month. If you were born in 1960 or later, your full retirement age is 67. You can find your exact full retirement age on your Social Security statement or by using the SSA's retirement age calculator at ssa.gov.

Your full retirement age matters because it is the anchor point for all other claiming ages. Claiming before it means a permanent reduction. Claiming after it means a permanent increase. The longer you wait past your full retirement age, the higher your monthly benefit grows — up until age 70, when the increase stops.

How claiming age changes your monthly benefit

If you claim at 62, your benefit is reduced by about 30 percent compared to your full retirement age benefit. The exact reduction depends on your birth year and how many months early you claim. If you claim at 63, the reduction is smaller. If you claim at your full retirement age, you receive your full benefit with no reduction.

If you delay past your full retirement age, your benefit increases by about 8 percent per year until age 70. This means if your full retirement age is 67 and you wait until 70, your monthly benefit is about 24 percent higher than it would be at 67. At 70, the increase stops — there is no additional benefit for waiting past 70.

The choice between claiming early and claiming late is a trade-off. Claiming at 62 means you receive checks for more years, but each check is smaller. Claiming at 70 means you receive checks for fewer years, but each check is much larger. The break-even point — when the total amount received is roughly equal — is usually around age 80 or 81, but this varies based on your individual circumstances.

How to find your estimated benefit amount

The SSA sends you a statement showing your estimated benefit at your full retirement age, at 62, and at 70. You can view this statement online by creating an account at ssa.gov/myaccount. You will need your Social Security number, email address, and a way to verify your identity — usually a driver's license, state ID, or passport.

If you do not have an online account, you can request a statement by mail. Call the SSA at 1-800-772-1213 (TTY 1-800-325-0778) and ask them to mail you a Social Security statement. You can also visit your local Social Security office in person. The statement shows your earnings record, so you can check whether the SSA has your work history correct. If you spot an error, report it right away — corrections become harder the longer you wait.

Your estimated benefit assumes you will continue working until you claim and that your earnings will stay about the same. If you plan to retire early or your earnings will change, your actual benefit may be different. The statement is an estimate, not a may provide of what you will receive.

What happens if you worked outside the United States

If you worked in another country, those earnings may not count toward your Social Security benefit unless 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 those countries and paid into their system, those credits may count toward your U.S. Social Security benefit, or you may be may have access to to a benefit from that country's system.

If you worked in a country without an agreement with the U.S., those earnings do not count. You can still receive a U.S. Social Security benefit based on your U.S. work history alone, as long as you have 40 credits. To find out whether your country has an agreement with the U.S., contact the SSA or visit ssa.gov/international.

How government pensions can reduce your benefit

If you receive a pension from work where you did not pay Social Security taxes — such as some government jobs, railroad work, or work outside the U.S. — two rules may reduce your Social Security benefit. These rules are the Government Pension Offset (GPO) and the Windfall Elimination Provision (WEP).

The GPO reduces your spousal or survivor benefit if you receive a government pension. The WEP reduces your own Social Security benefit if you receive a government pension. Both rules are complex and explore only in specific situations. If you have a government pension and are considering claiming Social Security, contact the SSA before you claim. They can tell you whether either rule applies to you and what your actual benefit will be.

Frequently Asked Questions

Can I see what my benefit will be before I claim?

Yes. Create an account at ssa.gov/myaccount to view your estimated benefit at different ages. The statement shows your benefit at 62, your full retirement age, and 70. You can also call 1-800-772-1213 to request a statement by mail, or visit a local Social Security office.

What if I worked less than 35 years?

The SSA counts zeros for the missing years, which lowers your average earnings and your benefit. If you worked 30 years, five zeros are included in the calculation. Working additional years can replace those zeros and increase your benefit, but only if your new earnings are higher than your lowest 35 years.

Does my benefit go up if I keep working after I claim?

Yes, but only if your new earnings are higher than one of your lowest 35 years. The SSA recalculates your benefit each year and replaces lower-earning years with higher ones. This is called a "recomputation." You do not have to do anything — the SSA does this automatically.

Why is my estimated benefit different from what I expected?

Common reasons include working fewer than 35 years (zeros lower your average), having years of low earnings, or receiving a government pension that triggers the WEP. Review your earnings record on your Social Security statement to make sure the SSA has your work history correct. If something looks wrong, contact the SSA right away.

If I claim early, will my benefit ever increase?

Your monthly benefit amount stays the same once you claim, but it increases each year with cost-of-living adjustments (COLA). However, your benefit will always be lower than it would have been if you had waited until your full retirement age or later. The reduction is permanent.