Your payment depends on your age when you start, your earnings history, and whether you're claiming as a worker or a family member

Social Security calculates your payment based on the wages you earned over your working years — specifically, your highest 35 years of earnings. The system adjusts older wages for inflation so they're comparable to recent ones. If you worked fewer than 35 years, the missing years count as zeros, which lowers your average. Your payment also depends heavily on when you claim: if you start at 62, you get less per month than if you wait until 67 or 70, because the program expects to pay you over a longer retirement.

The Social Security Administration (SSA) doesn't publish a single formula you can plug numbers into yourself. Instead, they calculate a Primary Insurance Amount (PIA) — the payment you'd receive at your full retirement age — and then adjust it up or down based on your claiming age. Family members can also receive payments based on your record: a spouse, ex-spouse, or child may be may have access to to a portion of your benefit.

Key Takeaways

  • Your payment is based on your 35 highest-earning years, adjusted for inflation, so working longer can increase it if recent years earn more than old ones.
  • Claiming at 62 gives you a smaller monthly payment than waiting until 67 or 70, because the total amount you receive over your lifetime is designed to be roughly equal regardless of when you start.
  • You can see your estimated payment by creating a my Social Security account at ssa.gov, which shows what you'd receive at different claiming ages.
  • Spouses, ex-spouses, and children may receive payments based on your earnings record, which can reduce your own payment if you claim before full retirement age.

How the SSA calculates your benefit amount

The SSA takes your highest 35 years of earnings, adjusts each year's wages for inflation using a national wage index, and calculates your average monthly earnings. They then apply a formula called a bend point formula, which replaces a higher percentage of lower earnings and a lower percentage of higher earnings. This is why someone who earned $30,000 a year gets a larger percentage of their pre-retirement income replaced than someone who earned $150,000 a year.

The bend points themselves change each year based on wage growth. For 2024, the first bend point is $1,174 and the second is $7,078 — these numbers shift annually. The formula gives you 90% of your average monthly earnings up to the first bend point, 32% of earnings between the first and second bend point, and 15% of earnings above the second bend point. The result is your Primary Insurance Amount, or PIA.

Once the SSA knows your PIA, they adjust it based on your claiming age. If you claim at 62 (the earliest age), your payment is reduced by about 30%. If you claim at your full retirement age — which ranges from 66 to 67 depending on your birth year — you receive 100% of your PIA. If you delay until 70, your payment increases by about 24% above your PIA, or roughly 8% per year you wait past full retirement age.

What your full retirement age means for your payment

Your full retirement age is the age at which you receive your full PIA with no reduction. For people born in 1943 or later, this age is between 66 and 67, depending on your birth year. If you were born in 1960 or later, your full retirement age is 67. This is different from age 62, when you can first claim, and different from age 70, when delayed retirement credits stop accumulating.

If you claim before full retirement age, your payment is permanently reduced. If you claim after full retirement age, your payment is permanently increased. The SSA does not increase your payment beyond age 70, so there's no financial advantage to waiting past 70 to claim. However, if you continue working and earning after you claim, your benefit may be temporarily reduced if you haven't reached full retirement age yet — the SSA withholds $1 in benefits for every $2 you earn above an annual limit (which changes yearly).

How to estimate your own payment

The fastest way to see your estimated payment 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, U.S. mailing address, or driver's license. Once you're logged in, your account shows your earnings record, your estimated benefit at different claiming ages, and your estimated family benefits if applicable.

The estimate assumes you'll keep working until you claim and that your future earnings will be similar to your recent ones. If you plan to retire early, work part-time, or have had years of low earnings, your actual benefit may differ. You can also call the SSA at 1-800-772-1213 to request a benefit estimate, though the wait time is often long. The online account is usually faster and gives you the same information.

Why claiming age makes such a big difference

The SSA uses actuarial tables to set the reduction and increase percentages so that the total amount you receive over your lifetime is roughly the same whether you claim at 62, 67, or 70 — assuming you live to an average age. If you claim at 62, you get a smaller check each month but you start receiving it eight years earlier. If you claim at 70, you get a larger check each month but you don't start until ten years later.

The break-even point — the age at which total lifetime benefits are equal — is usually in the early 80s. If you expect to live past 82 or 83, waiting to claim typically results in more total money. If you expect to live into your 60s or early 70s, claiming earlier may result in more total money. This is a personal decision that depends on your health, family history, financial needs, and other income sources. There is no single "right" age to claim.

How family members' benefits affect your payment

If you're married, your spouse can receive a benefit based on your earnings record. At full retirement age, a spouse receives up to 50% of your PIA. If your spouse claims before full retirement age, the payment is reduced. A spouse can also claim based on their own earnings record and receive whichever is higher — they don't have to choose your record.

Children under 19 (or up to 22 if in high school full-time) and disabled adult children can also receive benefits based on your record. An ex-spouse can receive benefits on your record if the marriage lasted at least 10 years, you're both at least 62, and you're not currently married. However, if you claim before full retirement age and have a spouse or ex-spouse also claiming on your record, your own benefit may be reduced — the SSA calls this a Government Pension Offset or Windfall Elimination Provision, depending on your situation.

What happens if you worked outside the United States

If you worked in another country, those earnings may count toward your Social Security benefit if the U.S. has a totalization agreement with that country. Totalization agreements allow workers to combine credits from both countries to meet the 40-credit requirement (roughly 10 years of work). Currently, the U.S. has totalization agreements with about 30 countries, including Canada, the United Kingdom, France, Germany, and Japan.

If you worked in a country without a totalization agreement, those earnings typically don't count. You'll need to have earned at least 40 credits (10 years) in the U.S. alone to receive a benefit. If you're unsure whether your country has an agreement with the U.S., you can check the SSA website or call them directly.

Frequently Asked Questions

Can I see my exact Social Security payment before I claim?

No — the SSA provides an estimate based on your current earnings record and assumptions about future work. Your actual payment depends on your exact claiming age, any changes to your earnings record, and cost-of-living adjustments (COLAs) that happen between now and when you claim. The estimate is usually accurate within a few dollars, but it's not a may provide.

Does my payment change after I start receiving it?

Yes. The SSA adjusts all benefits each year for cost-of-living increases, called COLAs. These adjustments are based on inflation and are the same percentage for all beneficiaries. Your payment can also change if you continue working and earn enough to replace one of your 35 highest-earning years with a higher one.

What if I worked for the government and have a pension?

If you worked for a federal, state, or local government and didn't pay Social Security taxes, the Windfall Elimination Provision (WEP) may reduce your Social Security benefit by up to 50% of your government pension. If you're receiving a spouse or survivor benefit, the Government Pension Offset (GPO) may reduce that benefit by two-thirds of your government pension. These rules are complex and depend on your specific situation.

Does my marital status affect how much I get?

Your own benefit is based on your earnings record alone, regardless of marital status. However, if you're married, divorced, or widowed, you may be may have access to to additional benefits based on your spouse's or ex-spouse's record. These family benefits don't reduce your own benefit — they're separate payments to family members.

What if I didn't work 35 years?

The SSA counts any years you didn't work as zero earnings. If you worked 30 years, five years of zeros are included in your 35-year average, which lowers your benefit. Working longer can increase your benefit if your recent earnings are higher than your oldest years, because the oldest years drop out of the calculation.