Your payment depends on your work history, the age you start, and whether you claim as a worker or family member

Social Security calculates your monthly payment based on your Primary Insurance Amount (PIA), which comes from your 35 highest-earning years. The Social Security Administration (SSA) records your earnings each year, and the formula weights recent years more heavily than distant ones. If you worked fewer than 35 years, zeros are counted for the missing years, which lowers your total.

The age you claim matters enormously. If you claim at your full retirement age — which ranges from 66 to 67 depending on your birth year — you receive your full PIA. Claiming at 62 reduces your payment by roughly 25 to 30 percent for the rest of your life. Waiting until 70 increases it by roughly 24 to 32 percent per year you delay. There is no way to know in advance which choice will pay you more over your lifetime, because that depends on how long you live.

If you are claiming as a spouse, widow, or dependent child, your payment is a percentage of the worker's PIA, not your own earnings record. A spouse at full retirement age receives about 32 to 50 percent of the worker's amount. A widow or widower at full retirement age receives 100 percent. These percentages change if you claim early.

Key Takeaways

  • Your payment is calculated from your 35 highest-earning years, so gaps in work history lower your amount.
  • Claiming at 62 instead of your full retirement age (66 or 67) permanently reduces your monthly payment by 25 to 30 percent.
  • Waiting to claim until 70 increases your payment by roughly 24 to 32 percent per year you delay.
  • You can see your estimated payment on your Social Security account at ssa.gov, which updates each year as you earn more.
  • If you claim as a spouse or dependent, your payment is a percentage of the worker's amount, not based on your own earnings.

How to find your estimated payment amount

The fastest way to see what you might receive is to create a my Social Security account at ssa.gov. You will need your Social Security number, email address, and a way to verify your identity — usually a phone number or bank account. Once you log in, your account shows your earnings record, your estimated payment at different claiming ages, and whether you have enough work credits to receive benefits.

The estimate assumes you keep working and earning at your current rate until you claim. If you plan to retire earlier or later, or if your income changes significantly, the estimate will shift. The SSA updates your account each year after tax season, when they receive your latest earnings from the IRS.

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). Wait times are often long, especially early in the week. You can also visit a local Social Security office in person, though many require you to make an appointment first through the website.

Why your payment might be lower than you expect

The most common reason is years with no earnings or very low earnings. If you took time out of the workforce to raise children, care for a family member, or were unemployed, those years count as zeros in your 35-year average. Even one or two years of zero earnings can noticeably reduce your total.

Self-employment income that was not reported to the IRS does not count toward Social Security. Only earnings you reported on a tax return — either as W-2 wages or Schedule C self-employment income — are included in your record. If you worked under the table or did not file taxes in certain years, those years will show as zero.

Government pensions can also affect your payment through two rules: the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). WEP reduces your Social Security if you also receive a pension from work not covered by Social Security — such as some federal, state, or local government jobs. GPO reduces or eliminates a spousal or survivor benefit if you receive a government pension. Not everyone is affected by these rules, but they apply to specific groups of workers.

What happens if you work while receiving Social Security

If you claim before your full retirement age and continue working, the SSA reduces your payment by $1 for every $2 you earn above an annual limit. For 2024, that limit is $23,400. In the year you reach full retirement age, the reduction is $1 for every $3 earned above a different limit ($62,160 for 2024), but only for earnings before the month you turn full retirement age.

Once you reach your full retirement age, you can earn as much as you want with no reduction to your benefit. This rule applies only to earned income — investment income, pensions, and rental income do not count.

Taxes on your Social Security payment

Depending on your total income, you may owe federal income tax on part of your Social Security benefit. The SSA uses a formula based on your "combined income," which includes your Social Security, half of your Social Security, and all other income (wages, interest, pensions, and taxable withdrawals from retirement accounts).

If your combined income is below $25,000 (or $32,000 if you are married filing jointly), you owe no tax on your benefit. Above those thresholds, up to 50 percent of your benefit may be taxable. If your combined income exceeds $34,000 (or $44,000 married), up to 85 percent may be taxable. Some states also tax Social Security benefits, though most do not.

The SSA does not automatically withhold taxes from your benefit, so you may need to make quarterly estimated tax payments or request withholding when you claim. Form SSA-1099 arrives each January and shows how much you received the previous year.

How cost-of-living adjustments work

Each year, the SSA increases payments by a Cost-of-Living Adjustment (COLA) if inflation has risen. The adjustment is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) and is announced in October for the following year. COLA increases have ranged from 0 percent (in years with no inflation) to 8.7 percent (in 2023).

The increase applies to all beneficiaries — workers, spouses, widows, and dependents — and is automatic. You do not need to do anything to receive it. However, COLA does not keep pace with all types of inflation. Healthcare costs, for example, often rise faster than the general inflation rate that COLA measures.

Recalculating your benefit after you claim

Your payment can increase after you start receiving it if you continue working and earn more than one of your 35 highest years. The SSA automatically recalculates your benefit each year using your new earnings record. This is one reason some people delay claiming — each additional year of work can replace a lower-earning year and raise your lifetime payment.

If you made a mistake on your application or your circumstances changed significantly, you may be able to request a recalculation. Contact the SSA directly to discuss your specific situation, as rules vary depending on when you claimed and what changed.

Frequently Asked Questions

Can I see what my spouse or ex-spouse will receive?

You can see your own estimate in your my Social Security account, but you cannot see another person's benefit amount. Your spouse or ex-spouse can create their own account to view their estimate. If you are married and both have worked, you each have your own benefit based on your own earnings record.

What if I never worked or have very few work credits?

You need 40 work credits to receive a retirement benefit based on your own work history. If you do not have 40 credits, you may still be able to claim as a spouse or widow if your spouse or ex-spouse has enough credits. Contact the SSA to discuss your options.

Does my payment change if I move to another country?

You can receive Social Security while living in most countries, but payments to some countries are restricted or suspended. If you plan to move abroad, contact the SSA before you leave to report your new address and understand any rules that apply to your situation.

What if the SSA has my earnings wrong?

You can view your earnings record in your my Social Security account and report errors. If you find a mistake, contact the SSA with proof — usually a tax return or W-2 from the year in question. Corrections can take several months, so report errors as soon as you notice them.