How Much Will Social Security Pay You?
Estimate your monthly Social Security benefit based on your earnings and claiming age. See how much you gain by waiting.
How Social Security Benefits Are Calculated
Your benefit is based on your Average Indexed Monthly Earnings (AIME) — the average of your 35 highest-earning years, adjusted for wage inflation. The Social Security Administration applies a progressive formula (bend points) that replaces a higher percentage of lower earnings. The result is your Primary Insurance Amount (PIA) — your benefit at full retirement age (67 for those born 1960+).
The Case for Waiting Until 70
Each year you delay past FRA adds 8% to your benefit — guaranteed, inflation-adjusted, for life. Claiming at 62 reduces your benefit by 30%. Claiming at 70 increases it by 24% over FRA. For someone with a $2,000 FRA benefit: $1,400/month at 62 vs. $2,480/month at 70. The breakeven point is typically age 80-82.
When to Claim Early
Claiming at 62 makes sense if: you have a shortened life expectancy, you need the income to avoid high-interest debt, or you can invest the benefits at returns exceeding the 8% delay credit. For most healthy adults, waiting is financially optimal.
Delaying Social Security from 62 to 70 increases your benefit by 77% (30% reduction avoided + 24% delay credits). No other guaranteed, inflation-adjusted investment offers this return.
