how do you calculate ss benefits

How do you find out how much Social Security you will receive?

Benefit Calculators (En español) The best way to start planning for your future is by creating a my Social Security account online. With my Social Security, you can verify your earnings, get your Social Security Statement, and much more – all from the comfort of your home or office.

Is Social Security based on the last 5 years of work?

We: Base Social Security benefits on your lifetime earnings. Adjust or “index” your actual earnings to account for changes in average wages since the year the earnings were received. Calculate your average indexed monthly earnings during the 35 years in which you earned the most.

How many years do you have to work to get maximum Social Security?

35 yearsQualifying for Social Security in the first place requires 40 work credits or approximately 10 years of work. 2 To be eligible to receive the maximum benefit, you need to earn Social Security's maximum taxable income for 35 years.

How much Social Security will I get if I make $60000 a year?

That adds up to $2,096.48 as a monthly benefit if you retire at full retirement age. Put another way, Social Security will replace about 42% of your past $60,000 salary. That's a lot better than the roughly 26% figure for those making $120,000 per year.

How much Social Security will I get if I make $30000 a year?

0:362:31How much your Social Security benefits will be if you make $30,000 ...YouTubeStart of suggested clipEnd of suggested clipThe number of months and 35. Years that gives you 2500. Still with me that number gives you yourMoreThe number of months and 35. Years that gives you 2500. Still with me that number gives you your average index monthly earnings or aim. Simply put it's your monthly pay for the last 35.

Is it better to take Social Security at 62 or 67?

The short answer is yes. Retirees who begin collecting Social Security at 62 instead of at the full retirement age (67 for those born in 1960 or later) can expect their monthly benefits to be 30% lower. So, delaying claiming until 67 will result in a larger monthly check.

How much Social Security will I get if I make $75000 a year?

about $28,300 annuallyIf you earn $75,000 per year, you can expect to receive $2,358 per month -- or about $28,300 annually -- from Social Security.

How much money can you have in the bank on Social Security retirement?

$2,000You can have up to $2,000 in cash or in the bank and still qualify for, or collect, SSI (Supplemental Security Income).

Benefit Calculators

The best way to start planning for your future is by creating a my Social Security account online. With my Social Security, you can verify your earnings, get your Social Security Statement, and much more – all from the comfort of your home or office.

Online Benefits Calculator

These tools can be accurate but require access to your official earnings record in our database. The simplest way to do that is by creating or logging in to your my Social Security account. The other way is to answer a series of questions to prove your identity.

Additional Online Tools

Find your full retirement age and learn how your monthly benefits may be reduced if you retire before your full retirement age.

What is the benefit estimate?

Benefit estimates depend on your date of birth and on your earnings history. For security, the "Quick Calculator" does not access your earnings record; instead, it will estimate your earnings based on information you provide. So benefit estimates made by the Quick Calculator are rough. Although the "Quick Calculator" makes an initial assumption ...

How old do you have to be to file for Social Security?

You must be at least age 22 to use the form at right. Lack of a substantial earnings history will cause retirement benefit estimates to be unreliable. Enter your date of birth ( month / day / year format) / /. Enter earnings in the current year: $. Your annual earnings must be earnings covered by Social Security.

How old do you have to be to use Quick Calculator?

You must be at least age 22 to use the form at right.

How much is spousal benefit reduced?

A spousal benefit is reduced 25/36 of one percent for each month before normal retirement age, up to 36 months. If the number of months exceeds 36, then the benefit is further reduced 5/12 of one percent per month.

What age can a spouse file for Social Security?

When a worker files for retirement benefits, the worker's spouse may be eligible for a benefit based on the worker's earnings. Another requirement is that the spouse must be at least age 62 or have a qualifying child in her/his care. By a qualifying child, we mean a child who is under age 16 or who receives Social Security disability benefits.

What is the reduction factor for spousal benefits?

For a spouse who is not entitled to benefits on his or her own earnings record, this reduction factor is applied to the base spousal benefit, which is 50 percent of the worker's primary insurance amount. For example, if the worker's primary insurance amount is $1,600 and the worker's spouse chooses to begin receiving benefits 36 months ...

Can a spouse reduce their spousal benefit?

However, if a spouse is caring for a qualifying child, the spousal benefit is not reduced. If a spouse is eligible for a retirement benefit based on his or her own earnings, and if that benefit is higher than the spousal benefit, then we pay the retirement benefit. Otherwise we pay the spousal benefit. Compute the effect of early retirement ...

How long do you have to be a Social Security employee to get full benefits?

Anyone who pays into Social Security for at least 40 calendar quarters (10 years) is eligible for retirement benefits based on their earnings record. You are eligible for your full benefits once you reach full retirement age, which is either 66 and 67, depending on when you were born.

How much will Social Security be in 2052?

starting in 2052 at age 66: $48,771. The earliest you can begin receiving benefits is at age 62. Spouse's annual Social Security benefit. The earliest you can begin receiving benefits is at age 62. Social Security Benefits Accounting for Inflation: 1st year of benefits through age 95.

How does Social Security affect retirement?

Social Security benefits in retirement are impacted by three main criteria: the year you were born, the age you plan on electing (begin taking) benefits and your annual income in your working years. First we take your annual income and we adjust it by the Average Wage Index (AWI), to get your indexed earnings.

What age do you have to be to claim Social Security?

If you claim Social Security benefits early and then continue working, you’ll be subject to what’s called the Retirement Earnings Test. If you’re between age 62 and your full retirement age, and you’re claiming benefits, you need to know about the Earnings Test Exempt Amount, a threshold that changes yearly.

How long do I have to work to get Social Security?

To get your social security benefits we do a couple things. First we assume that you have or will work for 35 years before electing social security benefits (this is needed to calculate your benefits) We then take your income and we adjust it by the Average Wage Index (AWI), to account for the rise in the standard of living during your working ...

Does Social Security protect against inflation?

That means the retirement income you collect from Social Security has built-in protection against inflation. For many people, Social Security is the only form of retirement income they have that is directly linked to inflation. It’s a big perk that doesn’t get a lot of attention.

Is Social Security a tax?

You may hear people grumbling about the Social Security “Earnings Tax”, but it’s not really a tax. It’s a deferment of your benefits designed to keep you from spending too much too soon. And after you hit your full retirement age, you can work to your heart’s content without any reduction in your benefits.

How much is Social Security reduced for 36 months?

For the 36 month period before full retirement age your benefit is reduced by .556% and for more than 36 months it is reduced by .417% per month. And that is it! Once you’ve gotten through this step you’ve successfully calculated your Social Security benefit.

What is indexing factor in SSA?

The SSA uses an indexing factor to make sure your future benefit has kept up with inflation, but still based on your earnings. Important note here …only your earnings through age 59 are indexed. All earnings at age 60 and beyond are used in the calculation at face value with no inflation adjustment applied. Also….

How to calculate Social Security benefits?

Your Social Security benefit is based on your average indexed monthly earnings (AIME). You can calculate this by looking at your annual income each year. Make sure you only include the portion of your income that was subject to Social Security tax.

How much does the SSA withhold?

If you make more than $45,360 in 2018 after filing a claim for Social Security benefits, SSA withholds $1 in benefits for every $3 you earn in excess of this higher limit.

How many years do you have to work to get Social Security?

Add up your income for the 35 highest years. Social Security benefits are based on your average earnings for 35 years of work. If you haven't worked for at least 35 years, Social Security will average in zeroes for as many years as you are short. If you've worked more than 35 years, choose the 35 years in which you earned the most income.

How much will Social Security be reduced if you retire early?

However, if you claim your benefit before you reach full retirement, your benefits will be reduced by 30 percent.

What is the age of full retirement?

1. Determine your normal retirement age (NRA). Your NRA, also called "full retirement age," is based on the year you were born, but varies generally from 65 to 67. This is the age at which you will receive your full benefit amount. If you file a claim for Social Security benefits before this age, you'll get less money.

Is Social Security taxable if spouse is still working?

This is also true if your spouse is still working, since Social Security benefits are also taxable. Decide whether you plan to keep working. If you don't intend to completely quit working after you file your claim for Social Security benefits, the SSA may withhold some of your benefits.

How the Retirement Estimator Works

The Retirement Estimator calculates a benefit amount for you based on your actual Social Security earnings record. Please keep in mind that these are just estimates.

Who Can Use the Retirement Estimator

You can use the Retirement Estimator if you have enough Social Security credits to qualify for benefits and you are not:

How Long Can You Stay On Each Page?

For security reasons, there are time limits for viewing each page. You will receive a warning if you don’t do anything for 25 minutes, but you will be able to extend your time on the page.