How is my Social Security benefit calculated?

The SSA first computes your Average Indexed Monthly Earnings (AIME) from your highest 35 earning years. It then applies a bend-point formula to produce your Primary Insurance Amount (PIA): 90% of the first $1,286 of AIME, 32% of AIME between $1,286–$7,749, and 15% of AIME above $7,749 (2026 bend points). The PIA is the benefit you receive if you claim exactly at your full retirement age. Claiming earlier reduces it; claiming later increases it.

What is full retirement age (FRA)?

Full retirement age is the age at which you receive 100% of your PIA. It depends on your birth year: those born in 1954 or earlier have an FRA of 66; it increases by 2 months per year for birth years 1955–1959 (reaching 66 years 10 months for 1959); and everyone born in 1960 or later has an FRA of 67. Claiming before FRA permanently reduces your monthly benefit; claiming after FRA increases it.

Should I claim Social Security at 62 or wait until 70?

Claiming at 62 gives you more years of payments but a permanently reduced benefit — up to 30% less than your FRA benefit for those born in 1960 or later. Waiting until 70 increases your benefit by up to 24% above FRA. The break-even point is typically around age 78–80: if you live past that age, waiting pays off in lifetime total benefits. If you have health concerns or need income early, claiming sooner may make sense.

How does claiming age affect my monthly benefit?

For someone born in 1960 or later (FRA = 67), claiming at 62 reduces the benefit by 30% (5/9% per month for the first 36 months early, then 5/12% per month beyond that). Claiming at 70 increases it by 24% above FRA (8% per year for 3 years). On a $2,000 FRA benefit, that means $1,400/month at 62 vs. $2,480/month at 70 — a $1,080/month difference, or $12,960 per year.

How do spousal Social Security benefits work?

A spouse can receive up to 50% of the primary earner's PIA — regardless of when the primary earner claims. The spousal benefit is based on the primary's PIA, not their actual benefit at the time of claiming. If the spouse's own earned benefit is higher than the spousal benefit, they receive their own record instead. The spousal benefit does not increase for delayed claiming past FRA; the only upside to delaying for the lower earner is growing their own record.

Are Social Security benefits taxable?

Up to 85% of your Social Security benefits may be subject to federal income tax, depending on your "provisional income" (AGI plus tax-exempt interest plus 50% of your SS benefits). Below $25,000 (single) or $32,000 (married), none of your benefits are taxable. Between $25,000–$34,000 (single) or $32,000–$44,000 (married), up to 50% may be taxable. Above those thresholds, up to 85% may be taxable. Most states do not tax SS benefits.

What is the maximum Social Security benefit in 2026?

The maximum Social Security retirement benefit in 2026 is $5,181 per month for a worker who earned at or above the maximum taxable wage base every year and claims at age 70. At full retirement age (67), the maximum is approximately $4,018/month. At age 62, the maximum is about $2,831/month. These maximums apply only to workers with very high career earnings — most people receive significantly less.

Social Security Calculator 2026 — Benefits Estimator

Estimates monthly and annual retirement benefits by income, birth year, and claiming age — compares benefits at 62, FRA, and 70.

How to Use This Social Security Calculator

Enter your birth year, current annual income, and the age at which you plan to claim benefits. The calculator estimates your monthly and annual Social Security retirement benefit using the SSA’s 2026 formula. Move the claim age slider between 62 and 70 to see how timing affects your monthly check. If you are married, toggle to Marriedand enter your spouse’s information to see their estimated benefit and your combined household monthly income.

Results are estimates based on a simplified earnings model — they assume your current annual income represents your average indexed earnings over 35 years. For a personalized projection, create a my Social Security account at ssa.gov to view your actual earnings record. To understand how taxes interact with your benefits, see the income tax calculator.

How Social Security Benefits Are Calculated

The SSA uses a two-step process: first computing your Average Indexed Monthly Earnings (AIME), then converting that to your Primary Insurance Amount (PIA) using a progressive bend-point formula.

Step 1 — AIME.The SSA takes your 35 highest-earning years, adjusts each year’s wages for inflation (wage indexing), sums them, and divides by 420 months (35 years × 12). If you have fewer than 35 years of earnings, the missing years are filled with zeros, which lowers your AIME. This calculator uses your current annual income as a proxy for all 35 years.

Step 2 — PIA (2026 bend points). The PIA formula applies three rates to your AIME:

90% of the first $1,286 of monthly AIME
32% of AIME between $1,286 and $7,749
15% of AIME above $7,749

The bend-point structure makes Social Security a progressive system: lower earners replace a higher percentage of their pre-retirement income. A worker earning $30,000/year might replace 50–60% of their income; a high earner at $150,000 might replace 25–30%.

Full Retirement Age by Birth Year

Full retirement age (FRA) is the age at which you receive 100% of your PIA. Claiming before FRA permanently reduces your benefit; claiming after FRA increases it by 8% per year up to age 70.

Birth Year	Full Retirement Age
1954 or earlier	66
1955	66 years, 2 months
1956	66 years, 4 months
1957	66 years, 6 months
1958	66 years, 8 months
1959	66 years, 10 months
1960 or later	67

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Early vs. Late Claiming: What the Numbers Say

Consider a worker born in 1960 (FRA = 67) earning $60,000/year. Their estimated PIA is approximately $1,838/month. Here is how claiming age changes that:

Claim at 62: 30% reduction → ~$1,287/month ($15,444/yr)
Claim at 67 (FRA): 100% of PIA → ~$1,838/month ($22,056/yr)
Claim at 70: 24% increase → ~$2,279/month ($27,348/yr)

The break-even between claiming at 62 vs. 67 is around age 78. Between 67 and 70, it is also around age 80. If you expect to live into your mid-80s or beyond — which is likely for someone in good health at 62 — waiting generally produces more total lifetime benefits. Health, spouse situation, and whether you need the income early are also critical factors. Use the paycheck calculator to model the income gap between early retirement and claiming age.

Spousal Social Security Benefits

A married person can receive Social Security based on their own work record or as a spousal benefit — whichever is higher. The spousal benefit is 50% of the primary earner’s PIA (not their actual claimed benefit). Key rules:

The lower-earning spouse can claim a spousal benefit as early as age 62, with a reduction for early claiming, or at their own FRA for the full 50%.
The spousal benefit does notincrease if the primary earner delays claiming past FRA. Delaying only grows the primary’s own benefit.
Divorced spouses who were married for at least 10 years may also be eligible for spousal benefits, even if their ex has remarried, provided they are currently unmarried.
Widow(er)s may claim survivor benefits as early as age 60 (50 if disabled) and can switch to their own benefit at 70 if it would be higher.

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Cost-of-Living Adjustments (COLAs)

Social Security benefits are adjusted each January for inflation via the Cost-of-Living Adjustment (COLA), which is tied to the Consumer Price Index for Urban Wage Earners (CPI-W). Since 1975, the average annual COLA has been approximately 3.7%. Recent years saw elevated adjustments: 5.9% in 2022, 8.7% in 2023, 3.2% in 2024, 2.5% in 2025, and 2.8% in 2026. COLAs compound over time, meaning a benefit you claim at 62 will also grow — but from a lower starting base than one claimed at 70.

This calculator does not project future COLAs, since they are unpredictable. The benefit estimates shown are in today’s (2026) dollars at your claimed age.

Social Security Trust Fund Outlook

The Social Security Old-Age and Survivors Insurance (OASI) trust fund is projected by the SSA’s trustees to be depleted around 2033, after which incoming payroll taxes would cover approximately 77% of scheduled benefits. This does not mean benefits would stop — it means a potential across-the-board cut of about 23% unless Congress acts. Historical precedent suggests Congress will address the shortfall before it occurs, as it has done multiple times since 1983, though the exact mechanism (higher taxes, benefit adjustments, retirement age changes, or some combination) is uncertain. This calculator uses current-law benefit formulas.

Disclaimer

This calculator provides estimates for informational purposes only and is not financial or retirement planning advice. Results are based on simplified earnings assumptions and 2026 SSA bend points and claiming-age adjustment rules. Actual benefits depend on your complete 35-year earnings history, the age you claim, and future legislative changes. For a personalized estimate based on your actual earnings record, visit ssa.gov and create a my Social Security account.

Sources & References

SSA OACT: Primary Insurance Amount — Social Security Administration
SSA: Retirement Benefits — How They Are Figured — Social Security Administration
IRS Publication 915: Social Security and Equivalent Railroad Retirement Benefits — Internal Revenue Service

Social Security Calculator 2026