Social Security Retirement Benefit Calculation (2024)

FAQs

How do you calculate your Social Security retirement benefits? ›

Social Security benefits are typically computed using "average indexed monthly earnings." This average summarizes up to 35 years of a worker's indexed earnings. We apply a formula to this average to compute the primary insurance amount (PIA). The PIA is the basis for the benefits that are paid to an individual.

Although you need at least 10 years of work (40 credits) to qualify for Social Security retirement benefits, we base the amount of your benefit on your highest 35 years of earnings.

You can call us at 1-800-772-1213 between 8:00 a.m. – 7:00 p.m. local time, Monday through Friday. Wait times to speak to a representative are typically shorter in the morning, later in the week, and later in the month.

If you become disabled before your full retirement age, you might qualify for Social Security disability benefits. You must have worked and paid Social Security taxes in five of the last 10 years.

When considering your retirement lifestyle, a common guideline is to replace 70% of your annual income before your retirement. You can plan to do this through a combination of retirement income sources that include Social Security, investments and savings from 401(k)s, IRAs and other retirement savings accounts.

You can start receiving your Social Security retirement benefits as early as age 62. However, you are entitled to full benefits when you reach your full retirement age. If you delay taking your benefits from your full retirement age up to age 70, your benefit amount will increase.

While you may have heard at some point that Social Security is no longer taxable after 70 or some other age, this isn't the case. In reality, Social Security is taxed at any age if your income exceeds a certain level.

Have you heard about the Social Security $16,728 yearly bonus? There's really no “bonus” that retirees can collect. The Social Security Administration (SSA) uses a specific formula based on your lifetime earnings to determine your benefit amount.

The easiest and most convenient way to apply for retirement benefits is by using our online application. You will need to create or log in to your personal my Social Security account.

What is the new rule for Social Security in 2024? ›

The 2024 earnings limit for people under full retirement age all year is $22,320. We deduct $1 from your benefits in 2024 for each $2 you earn over $22,320. The 2024 earnings limit for people reaching full retirement age is $59,520.

If the deceased reached retirement age, the surviving spouse can receive whatever the deceased was entitled to in the month of their death. Similarly, if the deceased already received monthly payments, the surviving spouse is entitled to what they received in the month of their death.

Consider taking Social Security benefits earlier if . . .

You're in poor health and don't expect the surviving member of the household to make it to average life expectancy. You're the lower-earning spouse, and your higher-earning spouse can wait to file for a higher benefit.

Social Security bases your retirement benefits on your lifetime earnings. We adjust or “index” your actual earnings to account for changes in average wages since the year the earnings were received. Then we calculate your average indexed monthly earnings from your highest 35 years of earnings.

The amount of monthly pension will be the highest result of the following formulae: 1. the sum of P300 plus 20 percent (20%) of the average monthly salary credit plus two percent (2%) of the average monthly salary credit for each CYS in excess of 10 years; or 2.