Your Social Security payment depends on your earnings history and the age you start collecting

The Social Security Administration (SSA) calculates your benefit based on your highest 35 years of earnings. The longer you work and the more you earn, the larger your benefit will be. If you have fewer than 35 years of earnings, the SSA counts zeros for the missing years, which lowers your average. You can start collecting as early as age 62, but your monthly payment will be smaller than if you wait. If you delay until age 70, your payment increases by roughly 8 percent per year.

The SSA does not publish a single formula that works for everyone because benefits are tied to your specific work record. However, you can get a personalized estimate by creating an account on ssa.gov, where you can view your earnings history and see what your payment would be at different ages. This is the most accurate way to know what to expect.

Key Takeaways

  • Your benefit amount is calculated from your 35 highest-earning years, so gaps in work history reduce your payment.
  • Starting at 62 gives you a smaller monthly payment than waiting until your full retirement age or age 70.
  • You can see a personalized estimate by creating a my Social Security account at ssa.gov and viewing your earnings record.
  • If you were born in 1960 or later, your full retirement age is 67; if you were born earlier, it may be 65 or 66.
  • Delaying past your full retirement age increases your payment by about 8 percent per year until age 70.

How the SSA calculates your benefit amount

The SSA uses a three-step process. First, it takes your 35 highest-earning years and adjusts them for wage inflation to make them comparable across decades. Second, it divides that total by 420 months (35 years) to get your average indexed monthly earnings. Third, it applies a formula called the Primary Insurance Amount (PIA) to convert that average into your monthly benefit.

The PIA formula has bend points — thresholds where the percentage of your earnings that counts toward your benefit changes. In 2024, for example, the formula replaces 90 percent of your first $1,174 in average monthly earnings, 32 percent of earnings between $1,174 and $7,078, and 15 percent of anything above $7,078. These bend points change each year based on national wage trends. The result is that lower-income workers get a higher percentage of their earnings replaced, while higher-income workers get a lower percentage.

If you have fewer than 35 years of work history, the SSA counts zeros for the missing years. This significantly reduces your average and your final benefit. For example, if you worked only 30 years, five zeros are included in the calculation, which lowers your average by roughly 12 percent before the PIA formula is even applied.

What your age at claiming means for your payment

Your age when you start collecting determines a percentage of your Primary Insurance Amount. If you claim at 62, you receive roughly 70 percent of your full retirement age benefit (the exact percentage depends on your birth year). If you claim at your full retirement age — 67 for most people born in 1960 or later — you receive 100 percent. If you delay until 70, you receive roughly 124 percent.

The difference compounds over time. A person born in 1960 with a full retirement age benefit of $2,000 per month would receive about $1,400 at age 62, $2,000 at age 67, and $2,480 at age 70. Over a 20-year period starting at 62, that person would collect about $336,000. Starting at 70, they would collect about $248,000 in the first 20 years but would continue receiving the higher payment for life if they live past 80.

The break-even point — where the total collected by waiting catches up to the total collected by claiming early — typically occurs in the early 80s. If you expect to live well into your 80s or 90s, waiting usually results in more total lifetime benefits. If you have health concerns or family history suggesting a shorter lifespan, claiming earlier may make sense financially.

How to find your personalized estimate

The most reliable way to see what your benefit will be is to create an account at ssa.gov/myaccount. You will need to verify your identity using a driver's license, state ID, or passport, and you may be asked security questions. Once logged in, you can view your complete earnings record and see benefit estimates for claiming at 62, your full retirement age, and 70.

The SSA updates your earnings record once per year, usually in the fall. If you are still working, your current year's earnings will not appear until the following year. The estimates shown assume you continue working at your current pace until you claim; if you plan to retire or change your work schedule, the estimate will be different.

If you do not have a my Social Security account, you can also request a benefit estimate by calling the SSA at 1-800-772-1213 (TTY 1-800-325-0778) or by visiting your local Social Security office. Processing a phone or in-person request takes longer than using the online account.

Factors that reduce or increase your benefit

If you claim before your full retirement age and continue working, your benefit is reduced by $1 for every $2 you earn above an annual limit (the limit changes yearly). Once you reach your full retirement age, there is no earnings limit and your benefit no longer decreases. This rule applies only to earned income from work; investment income, pensions, and other sources do not affect your benefit.

If you are divorced, you may be may have access to to a benefit based on your ex-spouse's earnings record if your marriage lasted at least 10 years and you have not remarried. This benefit can be as much as half of what your ex-spouse is may have access to to at their full retirement age, but it does not reduce their benefit. You must be at least 62 to claim on an ex-spouse's record.

Government Pension Offset (GPO) and Windfall Elimination Provision (WEP) are two rules that can reduce your benefit if you receive a pension from work not covered by Social Security — typically government employment. These rules are complex and depend on your specific situation, so if you have a government pension, ask the SSA directly how it affects your benefit.

What happens if you made mistakes on your earnings record

Errors on your earnings record can significantly lower your benefit. Common mistakes include missing years of work, earnings credited to the wrong year, or earnings not credited at all. You can review your record online through my Social Security or by requesting a Statement of Earnings from the SSA.

If you find an error, contact the SSA with documentation — usually a W-2, tax return, or pay stub showing the correct amount and year. The SSA has a three-year, three-month, and 15-day window to correct most errors, though some corrections can be made outside this window if you have strong evidence. Correcting errors before you claim can result in a significantly higher benefit.

Frequently Asked Questions

Can I see my benefit estimate without creating an online account?

Yes. Call the SSA at 1-800-772-1213 and ask for a benefit estimate, or visit your local Social Security office in person. Both methods take longer than using my Social Security online, but you will receive the same personalized estimate based on your earnings record.

Does my spouse's earnings affect my benefit amount?

No. Your benefit is based only on your own earnings history. However, if you are married, you may be may have access to to a spousal benefit equal to up to half of your spouse's full retirement age benefit, in addition to your own benefit. You must be at least 62 and your spouse must be claiming to receive a spousal benefit.

What if I did not work for 35 years?

The SSA counts zeros for years you did not work, which lowers your average earnings and your final benefit. If you worked only 30 years, five zeros are included in the calculation. Working additional years, even at lower wages, can replace those zeros and increase your benefit.

Will my benefit change after I start collecting?

Yes. Your benefit increases each year based on the Cost of Living Adjustment (COLA), which is announced in October and takes effect in January. COLA is tied to inflation and varies year to year. Your benefit statement will show your new amount each January.

How much will I lose if I claim at 62 instead of 67?

The reduction depends on your birth year, but generally claiming at 62 gives you about 70 percent of your full retirement age benefit. For someone with a full retirement age benefit of $2,000, claiming at 62 would mean roughly $1,400 per month instead. This reduction is permanent and applies to your entire lifetime benefit.