How your Social Security benefit is calculated
Social Security looks at your 35 highest-earning years, adjusted for wage growth, and turns them into average indexed monthly earnings (AIME). Your full benefit, called the primary insurance amount (PIA), is 90% of the first $1,286 of AIME, 32% of the amount up to $7,749 and 15% above that (the 2026 formula). Years with no earnings count as zero, so working fewer than 35 years lowers the benefit.
When should you start benefits?
- Full retirement age – 67 if you were born in 1960 or later; between 66 and 67 for people born from 1955 to 1959.
- Starting at 62 – the earliest age. With a full retirement age of 67, you get 70% of your full benefit for life.
- Waiting until 70 – you earn delayed retirement credits of 8% a year, so the benefit grows to 124% of the full amount. There is no gain from waiting past 70.
The table shows the monthly benefit at every starting age and the total you would collect by age 85. If you expect to live a long time, or your spouse may rely on your benefit as a survivor, waiting often pays more over a lifetime.
Frequently asked questions
How many years do I need to work to get Social Security?
You need 40 credits, which most people earn in 10 years of work. You can earn up to four credits a year.
Can I work and collect Social Security at the same time?
Yes. If you claim before full retirement age and earn more than a yearly limit, some benefits are temporarily withheld. They are added back to your monthly benefit once you reach full retirement age.
Are Social Security benefits taxed?
Up to 85% of your benefits can be subject to federal income tax if your other income is high enough. Some states also tax benefits.