Social Security Calculator

Social Security benefits are based on your highest 35 years of earnings. The Social Security Administration adjusts your past earnings for inflation and calculates your Average Indexed Monthly Earnings (AIME). Your benefit is then determined using a formula applied to your AIME, with replacement rates that are higher for lower earners and lower for higher earners.

Full retirement age (FRA) is the age at which you’re entitled to 100% of your Social Security benefit. It varies depending on your birth year. For people born in 1960 or later, the full retirement age is 67. For those born between 1943 and 1954, it’s 66. The FRA gradually increases for birth years between 1955 and 1959.

If you claim Social Security before your full retirement age, your benefits are permanently reduced. For example, if your full retirement age is 67 and you claim at 62, your benefits would be reduced by about 30%. The reduction is approximately 5/9 of 1% for each month before full retirement age, up to 36 months, and 5/12 of 1% for each additional month.

If you delay claiming Social Security past your full retirement age, your benefits increase by about 8% per year until age 70. For example, if your full retirement age is 67 and you delay until 70, your benefits would be about 24% higher than your full benefit amount. There is no additional benefit for delaying past age 70.

Whether your Social Security benefits are taxed depends on your combined income. If you file as an individual and your combined income is between $25,000 and $34,000, up to 50% of your benefits may be taxable. If your income is above $34,000, up to 85% of your benefits may be taxable. For married couples filing jointly, these thresholds are $32,000 and $44,000, respectively.