Social Security Retirement Calculator

How Social Security Benefits Are Calculated

The Social Security Administration (SSA) uses a two-step formula to determine your monthly retirement benefit. First, it calculates your AIME (Average Indexed Monthly Earnings) by indexing your lifetime wages to account for wage inflation, then averaging your highest 35 years of earnings. If you worked fewer than 35 years, zeros are averaged in for the missing years, which lowers your AIME.

Next, the SSA applies a progressive formula to your AIME using bend points — income thresholds that determine what percentage of earnings count toward your benefit. For 2026, the formula is: 90% of the first $1,174 of AIME, plus 32% of AIME between $1,174 and $7,078, plus 15% of any AIME above $7,078. The result is your PIA (Primary Insurance Amount) — your monthly benefit if you claim exactly at Full Retirement Age (FRA).

When to Claim: Early, On Time, or Late

You can claim Social Security as early as age 62 or as late as age 70. The age you choose has a permanent effect on your monthly check for the rest of your life.

The early-claiming reduction is permanent. Claiming at 62 when your FRA is 67 reduces your benefit by 5/9 of 1% per month for the first 36 months (20% total), and 5/12 of 1% per month for each additional month up to 60 months (another 10%). Conversely, each month you delay past FRA up to age 70 earns Delayed Retirement Credits worth 2/3 of 1% — adding up to 8% per year.

Break-Even Age and Lifetime Strategy

The break-even age is the point at which the higher monthly benefit from waiting overcomes the payments you missed by not claiming earlier. If you claim at 62 instead of 67, you receive 60 more months of payments — but each monthly check is smaller. Typically, waiting to claim at FRA (67) breaks even around age 79–80 compared to claiming at 62. Waiting to 70 versus 67 usually breaks even around age 82–83.

If you are in good health and expect to live into your mid-80s or beyond, delaying often yields more total lifetime income. If you have health concerns or need income now, claiming earlier may be the right choice. Married couples should also consider survivor benefits — the higher earner's delayed benefit becomes the survivor's benefit if the higher earner dies first.

Spousal and Survivor Benefits

If you are married, divorced (marriage lasted 10+ years), or widowed, you may be eligible for a benefit based on your spouse's record. A spouse can receive up to 50% of the worker's PIA. Survivor benefits can be up to 100% of the deceased worker's benefit. Maximizing the higher earner's benefit through delayed claiming can significantly boost household lifetime income and provide a larger safety net for the surviving spouse.