How the benefit formula works
AIME = average of your top 35 years of indexed earnings ÷ 12
PIA = 90% × first $1,340 + 32% × AIME from $1,340 to $8,077 + 15% × AIME above $8,077
Example: earning $65,000 a year for 35 years gives an AIME of $5,416. The PIA is 90% of $1,340 ($1,206) plus 32% of $4,076 ($1,304.32), or about $2,510 a month at full retirement age. Claiming at 62 would pay about $1,757; waiting until 70 about $3,112.
Full retirement age by birth year
| Born | Full retirement age | Benefit at 62 |
|---|
| 1943–1954 | 66 | 75% |
| 1955 | 66 and 2 months | 74.2% |
| 1956 | 66 and 4 months | 73.3% |
| 1957 | 66 and 6 months | 72.5% |
| 1958 | 66 and 8 months | 71.7% |
| 1959 | 66 and 10 months | 70.8% |
| 1960 and later | 67 | 70% |
When should you claim?
- Claiming early can make sense if you need the income, are in poor health or have a shorter life expectancy.
- Waiting gives a bigger check for life and a larger survivor benefit for a spouse. The break-even age for waiting is usually around 80 to 83.
- If you work while claiming before full retirement age, the earnings test can temporarily hold back some benefits.
Figures use the Social Security Administration's 2027 bend points and taxable maximum, announced in October 2026. Plan the rest of retirement with the retirement calculator and RMD calculator.
Last reviewed October 2026.
Frequently asked questions
How is my Social Security benefit calculated?
Social Security averages your highest 35 years of earnings, adjusted for wage growth, into your Average Indexed Monthly Earnings (AIME). Your full benefit, the Primary Insurance Amount (PIA), is 90% of AIME up to the first bend point, plus 32% up to the second bend point, plus 15% above it. For people first eligible in 2027, the bend points are $1,340 and $8,077.
What is my full retirement age?
Full retirement age is 67 for anyone born in 1960 or later. It is 66 and 2 months to 66 and 10 months for people born from 1955 to 1959, and 66 for those born from 1943 to 1954.
How much less do I get if I claim at 62?
Claiming before full retirement age permanently reduces your benefit by 5/9 of 1% a month for the first 36 months and 5/12 of 1% for each month beyond. With a full retirement age of 67, claiming at 62 cuts your benefit by 30%.
How much more do I get by waiting until 70?
Each year you wait past full retirement age adds 8% (delayed retirement credits), up to age 70. With a full retirement age of 67, claiming at 70 pays 124% of your full benefit. There is no extra credit for waiting beyond 70.
How accurate is this estimate?
It is a simplified estimate in today's dollars, assuming you earn the amount you enter (in today's money) for 35 years. Your actual benefit depends on your full earnings record. For your personal estimate, create a my Social Security account at ssa.gov and check your statement.