How Social Security Benefits Are Calculated
The Social Security Administration takes your highest 35 years of inflation-adjusted earnings, computes your Average Indexed Monthly Earnings (AIME), and applies a progressive formula with bend points. This calculator uses 2026 bend points ($1,286 and $7,749) and adjusts for early or delayed claiming relative to full retirement age (67 for those born in 1960 or later).
Related Calculators
Frequently Asked Questions
When should I claim Social Security?
Claiming at 62 gives you the earliest but smallest benefit (reduced ~30%). Waiting until 70 gives you the largest benefit (increased ~24% over FRA). Your break-even age is typically around 80.
How is the benefit calculated?
Social Security uses your highest 35 years of earnings, adjusts for inflation, takes the monthly average (AIME), and applies a progressive formula (PIA) with bend points.
Is this estimate accurate?
This is a simplified estimate for the cohort first eligible in 2026. SSA publishes the bend points. For your earnings record, eligibility year and COLAs, use your Social Security account.