How the formula actually works
The SSA converts career earnings into an Average Indexed Monthly Earnings (AIME) figure, then runs that through a progressive three-tier formula — 90%, 32%, then 15% — to produce the Primary Insurance Amount (PIA), the benefit at full retirement age. That PIA is then adjusted up or down depending on the age actually claimed.
A worked example
Someone earning $75,000 a year on average, born in 1990 (full retirement age 67), has an estimated PIA of about $2,746 a month. Claiming at 62 instead would lower that to roughly $1,922, while waiting until 70 would raise it to about $3,405 — a gap of nearly $1,500 a month depending purely on claiming age.
Frequently asked questions
Why is this called a 'quick estimate' instead of an exact calculation?
Your real benefit is based on your actual highest 35 years of wage-indexed earnings — a history only the SSA has on file. This calculator assumes constant earnings across a full career as a stand-in, which is the same simplification the SSA's own Quick Calculator uses. For a precise number, create a free account at ssa.gov/myaccount and view your actual earnings record.
Why does claiming earlier reduce the benefit so much?
Claiming before full retirement age permanently reduces the benefit — by 5/9 of 1% for each of the first 36 months early, then 5/12 of 1% for any additional months. Claiming at 62 with a full retirement age of 67 means 60 months early, which works out to a 30% permanent reduction.
Why does waiting until 70 increase the benefit?
Delayed retirement credits add 2/3 of 1% for every month you wait past full retirement age, up to age 70 — 8% per full year. Someone with a full retirement age of 67 who waits until 70 gets 24% more than their full retirement age benefit, permanently.
What are the 2026 bend points used in this calculation?
$1,286 and $7,749, per the Social Security Administration's official 2026 figures. Earnings up to the first bend point replace at 90%, the portion between the two bend points replaces at 32%, and anything above the second bend point (up to the taxable maximum of $184,500) replaces at only 15%.
This calculator provides a simplified estimate for general informational purposes only and is not financial advice or an official benefit determination. It assumes constant career earnings rather than your actual indexed earnings history. Visit ssa.gov for an estimate based on your real earnings record.