How to Use the Social Security Benefits Calculator
- Enter your year of birth, which sets your full retirement age.
- Choose the age you plan to claim.
- Enter your average yearly earnings in today’s dollars and the number of years you worked.
- Press Calculate.
- Open the table to compare every claiming age from 62 to 70.
Formula
AIME = (average yearly earnings × min(years, 35)) ÷ 420
PIA = 90% of AIME up to first bend point
+ 32% of AIME between bend points
+ 15% of AIME above second bend point
Early claiming: −5/9 of 1% per month for the first 36 months, −5/12 of 1% after
Delayed claiming: +2/3 of 1% per month after full retirement age, to age 70Example Calculation
A person born in 1975 (full retirement age 67) averaging $70,000 over 35 years has an AIME of $5,833. Using bend points of $1,286 and $7,749, the PIA is about $2,612 a month at 67. Claiming at 62 would reduce that by 30%; waiting until 70 would raise it by 24%.
What Is a Social Security Calculator?
It estimates the monthly check you may receive in retirement based on your earnings history and the age you start collecting. Because the benefit formula is progressive, replacement rates are higher for lower earners.
How Your Benefit Is Calculated
The Social Security Administration indexes your past earnings to wage growth, selects your highest 35 years, averages them monthly (AIME) and applies the PIA formula. Earnings above the taxable maximum for a year are not counted, and years without earnings count as zeros.
Claiming Age Trade-offs
Claiming at 62 gives the smallest check for the longest time. Waiting until full retirement age gives 100%. Delaying to 70 maximizes the monthly amount and provides inflation-adjusted income that may help protect against outliving savings.
Tips
- Create your account at ssa.gov to review your earnings record for errors.
- Consider spousal and survivor effects before deciding.
- Coordinate claiming with your savings using the retirement calculator.
Common Mistakes
- Assuming benefits will be the same as a coworker’s without comparing earnings.
- Claiming early without considering the permanent reduction.
- Ignoring the earnings test if you continue working before full retirement age.