Social Security will likely be a significant part of your retirement income. This calculator estimates your benefits based on your earnings history and when you choose to claim—because when you start can mean hundreds of thousands of dollars in difference over your lifetime.
How This Calculator Works
This calculator estimates your Social Security benefits:
- Average Annual Income: Your typical earnings over your career
- Claiming Age: When you plan to start benefits (62-70)
- Full Retirement Age: Your FRA based on birth year (66-67)
- Monthly Benefit: Estimated check amount
- Lifetime Benefits: Projected total based on life expectancy
The Formula Explained
Social Security uses bend points on your Average Indexed Monthly Earnings (AIME):
PIA = 90% × first $1,174 + 32% × ($1,175-$7,078) + 15% × above $7,078
Then adjust by claiming age:
- Before FRA: Reduced 5-6.7% per year early
- After FRA: Increased 8% per year delayed (up to age 70)
Step-by-Step Example
Impact of Claiming Age
Average income: $75,000 | Full Retirement Age: 67
| Claiming Age | Monthly Benefit | % of FRA | Lifetime Total (to age 85) |
| 62 | $1,680 | 70% | $463,680 |
| 67 (FRA) | $2,400 | 100% | $518,400 |
| 70 | $2,976 | 124% | $535,680 |
Waiting until 70 maximizes lifetime benefits if you live past 82.
Frequently Asked Questions
What is Social Security Full Retirement Age (FRA)?
FRA is when you can claim 100% of your earned benefit. For those born 1943-1954, it's 66. For 1960+, it's 67. Years in between phase in. Claiming before FRA reduces benefits permanently; claiming after (up to 70) increases them 8% per year.
How is my Social Security benefit calculated?
Social Security calculates your Average Indexed Monthly Earnings (AIME) from your highest 35 years of earnings, adjusted for inflation. Then applies bend points: 90% of first ~$1,174/month, 32% of next ~$5,900, 15% of the rest. This creates your Primary Insurance Amount (PIA)—your benefit at FRA.
Should I claim Social Security early at 62?
Pros: Get money sooner, especially if you need income or have health concerns. Cons: Benefits permanently reduced 25-30%, plus no delayed credits. Those who live past ~82 typically get more total by waiting. If you're healthy with other income sources, waiting usually pays off.
How much does waiting until 70 increase my benefit?
Each year you delay past FRA, your benefit increases 8% (until age 70). Waiting from 67 to 70 = 24% more benefit for life. This is one of the best guaranteed returns available. For couples, having the higher earner delay can also increase survivor benefits.
Can I work while receiving Social Security?
Yes, but before FRA earnings may reduce benefits. In 2024, if earning over $22,320 before FRA, benefits are reduced $1 for every $2 over the limit. The year you reach FRA, the limit is higher and reduction is less. After FRA, no penalty—earn as much as you want.
How are Social Security benefits taxed?
Up to 85% of benefits may be taxable depending on total income. If your combined income (adjusted gross income + nontaxable interest + half your SS benefit) exceeds $25,000-$34,000 (single), a portion becomes taxable. Some states also tax Social Security; most don't.
What if I'm married or divorced?
Spousal benefits: You may receive up to 50% of your spouse's FRA benefit if higher than your own. Survivor benefits: Widows/widowers can receive deceased spouse's benefit. Divorced spouses: May claim on ex's record if married 10+ years and currently unmarried. Strategic claiming can maximize household benefits.
Will Social Security be there when I retire?
Social Security faces a funding shortfall—without changes, the trust fund may be depleted by mid-2030s. However, even then, payroll taxes would cover ~75-80% of scheduled benefits. Political solutions (tax increases, benefit adjustments) are likely before cuts. Plan for scenarios, but don't assume zero benefits.
Key Points to Remember
- Break-even age: Calculate when delaying pays off (usually age 80-83)
- 8% per year: Guaranteed return for delaying past FRA
- Spousal strategies: Couples should coordinate claiming decisions
- 35 years matter: Your top 35 working years determine benefits
- Work history required: Need 40 credits (~10 years) to qualify