Quick answer: With average indexed earnings of $6,000 a month, the 2025 formula gives a full benefit of $2,631 a month at 67; claiming at 62 cuts it to $1,841 and waiting to 70 raises it to $3,262.
How it's calculated
The primary insurance amount (PIA) is 90% of AIME up to $1,226, plus 32% of AIME up to $7,391, plus 15% above that (the 2025 bend points), rounded down to the dime. AIME is your highest 35 years of earnings, indexed to wage growth, divided by 420. People first eligible in a later year use that year's bend points, which are usually higher.
Full retirement age (FRA) is 67 for people born in 1960 or later (66 to 66 and 10 months for 1943–1959). Claiming early reduces the benefit by 5/9 of 1% for each of the first 36 months and 5/12 of 1% for each month beyond: 30% at 62 for an FRA of 67. Waiting past FRA adds 8% a year until 70.
Your own statement at ssa.gov/myaccount uses your actual earnings record and is more accurate. Benefits also rise each year with cost-of-living adjustments, which this estimate leaves out. For savings to add to it, see the US 401(k) calculator.
Worked examples
- AIME $6,000: 0.9 × 1,226 + 0.32 × 4,774 = 2,631.08 → PIA 2,631.00
- Claim at 62 (FRA 67): 2,631 × 0.70 = 1,841
- Claim at 70: 2,631 × 1.24 = 3,262
Frequently asked questions
Where do I find my AIME?
SSA does not show it directly. Your earnings record is on your my Social Security account; index each year's earnings and average the best 35, or use the benefit estimates on your statement.
Do I need 40 credits?
Yes, 40 credits (about 10 years of covered work) are needed for a retirement benefit. Work in the Gulf is not covered and does not count.
When should I claim?
It depends on health, other income and marriage. Delaying raises the monthly amount for life; claiming early gives more years of smaller payments. The break-even is usually around age 80.
What is the earliest age I can claim?
62, with a permanent reduction. Waiting past your full retirement age raises the benefit until age 70.
Can I receive benefits while living in the Gulf?
US citizens can generally receive payments abroad, with a few country restrictions. Check the Social Security Administration's rules for payments abroad.
Is my benefit based on my whole career?
It uses your highest 35 years of indexed earnings. Years with no earnings count as zero and lower the average.