Social Security retirement benefits are calculated from your 35 highest-earning years and are permanently affected by when you claim. Our calculator estimates your monthly benefit at ages 62, 67, and 70—and helps you decide whether claiming early, at full retirement age, or late maximizes your lifetime income.
The SSA calculates your Average Indexed Monthly Earnings (AIME) from your 35 highest-earning years, then applies a progressive formula to produce your Primary Insurance Amount (PIA)—your benefit at full retirement age.
Full retirement age (FRA) is 66 for those born 1943–1954, gradually increases to 67 for those born 1960 or later. Claiming before FRA permanently reduces benefits; claiming after FRA permanently increases them by about 8% per year up to age 70.
Claiming at 62 reduces your benefit by up to 30% permanently (exact reduction depends on your FRA). The reduction is roughly 5/9 of 1% per month for the first 36 months before FRA, and 5/12 of 1% per month beyond that.
Delaying past FRA earns delayed retirement credits of 8% per year, compounding to a 24–32% higher benefit at 70 vs FRA. The break-even age is typically around 80–82. If you are in good health and have other income to live on, delaying often maximizes lifetime benefits.
If you claim before FRA and continue working, the earnings test withholds $1 in benefits for every $2 earned above $22,320 (2024). Benefits withheld are not lost—they are credited back as a higher monthly benefit starting at FRA. After FRA, there is no earnings test.
Up to 85% of Social Security benefits may be taxable if your combined income (AGI + nontaxable interest + half of Social Security) exceeds $34,000 (single) or $44,000 (joint). Thirteen states also tax Social Security benefits.