Your payment depends on your earnings history, the age you claim, and the year you were born

Social Security calculates your retirement payment using three pieces of information: how much you earned during your working years, when you decide to claim, and your birth year. The Social Security Administration (SSA) does not use a fixed formula that applies to everyone — your payment is tied directly to what you paid into the system through payroll taxes. If you earned more over your lifetime, your payment will be higher. If you claim at 62 instead of 67, your payment will be lower for the rest of your life.

You can see an estimate of your own payment by creating an account on ssa.gov and viewing your Social Security Statement. This statement shows your actual earnings record and gives you three payment estimates: one if you claim at 62, one at your full retirement age (which ranges from 66 to 67 depending on birth year), and one at 70. These estimates are based on your real work history, not a guess.

Key Takeaways

  • Your payment amount is calculated from your 35 highest-earning years; years with no earnings count as zeros and lower your average.
  • Claiming at 62 gives you a smaller monthly payment but you receive it for more years; claiming at 70 gives you a larger monthly payment but you start later.
  • Your full retirement age — when you get your unreduced payment — is 66 or 67 depending on whether you were born before or after 1960.
  • You can view your personalized payment estimates on ssa.gov without paying anyone or submitting forms.

How the Social Security Administration calculates your base payment

The SSA starts by looking at your 35 highest-earning years. If you worked fewer than 35 years, the missing years count as zero, which lowers your average. Once the SSA identifies your top 35 years, it adjusts those earnings for inflation using a formula that accounts for wage growth in the economy. This adjusted total is then divided by 420 (the number of months in 35 years) to get your Average Indexed Monthly Earnings, or AIME.

The AIME is then run through a bend point formula that converts it into your Primary Insurance Amount, or PIA. This is your full retirement age payment — the amount you would receive if you claimed at your full retirement age. The bend point formula is progressive, meaning it replaces a higher percentage of lower earnings and a lower percentage of higher earnings. In 2024, the bend points are $1,174 and $7,078, but these change each year. The SSA applies the formula to your AIME to arrive at your PIA.

You do not need to calculate this yourself. The SSA does it automatically, and you can see the result on your Statement.

How your age at claim changes your monthly payment

Your full retirement age is when you can claim your full PIA without any reduction. For people born in 1943 through 1954, full retirement age is 66. For people born in 1955, it is 66 and 2 months. For people born in 1956 through 1959, it increases by 2 months for each birth year. For people born in 1960 or later, full retirement age is 67.

If you claim before your full retirement age, your payment is reduced. The reduction is about 6.7 percent per year if you claim one to three years early, and about 5 percent per year for each year before that. If you claim at 62 (the earliest age), the reduction is roughly 30 percent for someone with a full retirement age of 67. This reduced payment is permanent — it does not increase to your full amount later.

If you delay claiming past your full retirement age, your payment increases by about 8 percent per year until age 70. After 70, there is no additional increase, so most people do not claim after 70. Someone born in 1957 with a full retirement age of 66 and 10 months who delays until 70 would receive roughly 24 percent more per month than they would at full retirement age.

What happens to your payment if you keep working

If you claim Social Security before your full retirement age and continue to work, the SSA reduces your payment based on your earnings. In 2024, if you earn more than $23,400 per year before your full retirement age, your benefit is reduced by $1 for every $2 you earn above that amount. The year you reach full retirement age, a different rule applies: your benefit is reduced by $1 for every $3 you earn above $62,400, but only for earnings before the month you reach full retirement age.

Once you reach your full retirement age, the earnings limit no longer applies. You can earn any amount without a reduction to your Social Security payment. These dollar amounts change each year, so check ssa.gov for the current limits if you plan to work while receiving benefits.

How to find your personalized payment estimate

The most accurate way to see what you will receive is to create a my Social Security account on ssa.gov. You will need your Social Security number, email address, and a way to verify your identity (usually a phone number or address on file). Once you log in, your Social Security Statement shows your complete earnings record, any gaps in coverage, and three payment estimates based on your actual work history.

The three estimates show what you would receive if you claimed at 62, at your full retirement age, and at 70. These are not may provide amounts — they assume you continue to work and earn at your current rate until you claim. If your earnings change significantly, your estimate will change too. You can check your Statement once a year or whenever your circumstances change.

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 a benefit estimate. Wait times are typically shorter early in the morning or on weekdays.

Factors that reduce or increase your payment

If you worked for a government employer and received a pension that was not based on Social Security taxes, you may be subject to the Government Pension Offset or Windfall Elimination Provision. These rules can reduce your own benefit or your spouse's or survivor's benefit. The reduction depends on when you were born and how much your government pension is. You can find out whether these rules affect you by reviewing your Social Security Statement or calling the SSA.

If you are divorced, you may be able to claim on your ex-spouse's record if you were married for at least 10 years, are at least 62, and are not currently married. Your payment would be up to 50 percent of your ex-spouse's full retirement age benefit, but it cannot exceed your own full retirement age benefit. This does not reduce your ex-spouse's payment.

If you are married, you and your spouse can each claim on your own records. Spousal benefits — where one spouse claims a reduced amount based on the other's record — are available only to people born before January 2, 1954, and the rules are complex. If you were born after that date, you receive only your own benefit.

How inflation affects your payment over time

Once you start receiving Social Security, your payment is adjusted each year for inflation through a Cost of Living Adjustment, or COLA. The COLA is based on the Consumer Price Index and is announced in October for the following year. In recent years, COLA adjustments have ranged from 0 percent to 8.7 percent, depending on inflation. This means your payment grows over time, but the growth depends on what happens in the economy, not on a fixed schedule.

The COLA applies to everyone receiving Social Security — retirees, disabled workers, and survivors. It is automatic; you do not need to do anything to receive it. Your payment in January of each year will reflect the previous year's COLA adjustment.

Frequently Asked Questions

Can I see what I will get before I turn 62?

Yes. Create a my Social Security account on ssa.gov to view your Statement, which includes three payment estimates based on your actual earnings record. These estimates assume you continue working at your current rate. You can check your Statement anytime without cost.

What if I have gaps in my work history?

Gaps count as zero-earning years in your 35-year average. If you worked only 30 years, five years of zeros are included in the calculation, which lowers your average and your payment. Working longer can replace those zeros with actual earnings and increase your benefit.

Does my spouse get a separate payment?

Your spouse can claim on their own work record, which is calculated the same way as yours. If your spouse has little or no work history, they may be able to claim a spousal benefit, but rules differ based on birth year. Check your Social Security Statement or call the SSA to understand your spouse's options.

What if I claim early but then change my mind?

If you claim before your full retirement age and change your mind within 12 months, you can withdraw your claim, repay what you received, and reapply later at a higher rate. After 12 months, you cannot withdraw. If you are past full retirement age, you can suspend your benefits to let them grow, but the rules are limited.

How much will I actually receive each month?

Your personalized estimate is on your Social Security Statement on ssa.gov. The amount depends on your earnings history, your birth year, and the age you claim. Estimates range widely — someone born in 1960 claiming at 67 might receive anywhere from $1,500 to $3,800 per month depending on lifetime earnings.