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 formula for Social Security benefits?
The Social Security benefits formula is designed to replace a higher proportion of income for low-income earners than for high-income earners. To do this, the formula has what are called “bend points." These bend points are adjusted for inflation each year.
How to calculate Social Security if you are not 62?
Because of how the wage indexing formula works, if you are not yet age 62, your calculation to determine how much Social Security you will get is only an estimate. Until you know the average wages for the year you turn 60, there is no way to do an exact calculation. However, you could attribute an assumed inflation rate to average wages to estimate the average wages going forward, and use those to create an estimate.
How to calculate indexing year?
Your wages are indexed to the average wages for the year you turn 60. 4 For each year, you take the average wages of your indexing year (which is the year you turn 60) divided by average wages for the years you are indexing, and multiply your included earnings by this number. 5
What is wage indexing?
Social Security uses a process called wage indexing to determine how to adjust your earnings history for inflation. Each year, Social Security publishes the national average wages for the year. You can see this published list on the National Average Wage Index page. 3 .
What is the process used to determine how to adjust your earnings history for inflation?
Social Security uses a process called "wage indexing" to determine how to adjust your earnings history for inflation. Each year, Social Security publishes the national average wages for the year. You can see this published list on the National Average Wage Index page. 3
How is Social Security decided?
Your Social Security benefit is decided based on your lifetime earnings and the age you retire and begin taking payments. Your lifetime earnings are converted to a monthly average based on the 35 years in which you earned the most, adjusted for inflation. Those earnings are converted to a monthly insurance payment based on your full retirement age.
How to find average indexed monthly earnings?
Total the highest 35 years of indexed earnings, and divide this total by 420, which is the number of months in a 35-year work history, to find the Average Indexed Monthly Earnings.
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 Social Security pay?
Understanding how much you'll receive each month in Social Security benefits is a big part of retirement planning. The average is around $16,000 a year, but the actual amount you'll receive depends on how much money you've put into the system. The Social Security Administration (SSA) and other groups have online calculators that can help you estimate your benefits, but to calculate them more exactly you'll have to calculate your average indexed monthly earnings (AIME) to find your primary insurance amount. This amount must then be adjusted up or down to account for the age you decide to retire.
How to find out your NRA?
Find out your NRA by looking at the table on the SSA website, available at https://www.ssa.gov/oact/ProgData/nra.html. There is also a quick calculator on the side of the page. If you enter your birth date, it will tell you exactly when you will reach full retirement.
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 to find the average of 35 years?
Divide your total by 420. Once you've totaled your 35 highest-earning years, get the average by dividing that total amount by the number of months in 35 years, which is 420. Because you adjusted your earnings for inflation, this average is "indexed."
What is the maximum retirement benefit?
The maximum benefit depends on the year you retire, and how old you are when you retire. If you reach full retirement in 2017, your maximum benefit would be $2,687.
How many retirement estimates does Quick Calculator give?
If you do not give a retirement date and if you have not reached your normal (or full) retirement age, the Quick Calculator will give benefit estimates for three different retirement ages.
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 ...
What does "0" mean in retirement?
If you entered 0, we assume you are now retired. Enter the last year in which you had covered earnings and the amount of such earnings.
How old do you have to be to use Quick Calculator?
You must be at least age 22 to use the form at right.
Why are retirement benefits unreliable?
Lack of a substantial earnings history will cause retirement benefit estimates to be unreliable.
Is the online calculator more accurate than the Quick Calculator?
To use the Online Calculator, you must have a copy of your earnings record because you will need to enter your covered earnings for each year. This calculator is more accurate than the Quick Calculator. (The Online Calculator requires that your browser be JavaScript-enabled.)
Can you use the retirement calculator if you are receiving a benefit based on your own earnings?
You can not use this calculator if you are receiving a benefit based on your own earnings record. In addition, you must be permanently insured to use the Retirement Estimator. Other calculators, listed below, are less restrictive but require you to enter your earnings.
What is the retirement estimate?
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.
Can you use the retirement estimate if you have blocked access to your personal information?
You cannot use the Retirement Estimator if you have blocked electronic access to your personal information.
Can you use the retirement estimate if you have enough Social Security?
You can use the Retirement Estimator if you have enough Social Security credits to qualify for benefits and you are not:
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 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.
What is the Social Security income test for 2021?
For 2021, the Retirement Earnings Test Exempt Amount is $18,960/year ($1,580/month). If you’re in this age group and claiming benefits, then every $2 you make above the Exempt Amount will reduce by $1 the Social Security benefits you'll receive. (Note that only income from work counts for the Earnings Test, so income from capital gains and pensions won’t count against you.)
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 many states tax Social Security?
That covers federal income taxes. What about state income taxes? That depends. In 13 states, your Social Security benefits will be taxed as income, either in whole or in part; the remaining states do not tax Social Security income.
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 ...
