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Social Security benefits can be a stable source of monthly income when you retire—one that isn't subject to depletion or the whims of the market. But how do you know how much you'll receive?
The maximum Social Security benefit in 2024 is $3,822 per month, according to the Social Security Administration—but that's for people who retire at 66 years old. Waiting until age 70 to collect benefits pushes the maximum monthly benefit to $4,873.
Your monthly Social Security retirement benefit depends on how much you earn over your working life, your retirement age and the current inflation rate. If retirement is still years away, you probably can't calculate your future payment down to the penny yet. But you can learn more about how Social Security benefits are calculated and access tools to help you estimate your future benefits.
| Estimated Average Monthly Benefits in 2024 | |
|---|---|
| All Social Security beneficiaries | $1,907 |
| Aged couple, both receiving benefits | $3,033 |
| Widowed mother, two children | $3,653 |
| Aged widow(er), alone | $1,773 |
| Disabled worker, spouse and one or more children | $2,720 |
| All disabled workers | $1,537 |
Source: Social Security Administration
How Are Social Security Payments Calculated?
Every person's benefits are calculated individually, so your results will vary. How much Social Security you'll personally receive depends on some of the individual factors highlighted below.
Work Eligibility
Generally speaking, you must work and pay into Social Security for at least 10 years over the course of your lifetime. You earn up to four credits per year when you work and pay Social Security taxes. You need 40 credits to qualify for Social Security benefits.
Learn more >> How Do Social Security Credits Work?
Lifetime Earnings
The Social Security Administration uses your highest 35 years of earnings to calculate your benefits. If you haven't worked for 35 years, your non-earning years will count as zero. On the other hand, if you've exceeded the maximum taxable earnings in any year, the Social Security Administration will count the taxable maximum and not your actual earnings when they calculate your benefit.
Wage Indexing
Here's where the math gets fuzzy. The Social Security Administration indexes your lifetime earnings to adjust for changes in the standard of living over the course of your working life. Using the national wage indexing series, they apply adjustment factors to determine your average indexed monthly earnings (AIME), an average wage amount that reflects real wages during the years you worked.
You can see a readout of indexing factors based on your eligible retirement age if you're interested in doing these calculations yourself. Or use the resources in the next section to have the Social Security Administration do some of the math for you.
Retirement Age
Waiting to retire can work to your advantage. You may qualify for Social Security retirement benefits starting at age 62, but you'll receive significantly more in benefits for every year you continue working. Full retirement age depends on the year you were born: It's 67 if you were born in 1960 or later, and 66 if you were born between 1943 and 1954. Your full retirement age falls somewhere in between if you were born between 1955 and 1959.
If you continue working after you reach full retirement age, your benefits increase by 8% per year. By age 70, you will have reached your maximum benefit.
Adjustments for Inflation
The Social Security Administration calculates a cost of living adjustment (COLA) each year based on any increases in the Department of Labor's consumer price index. For 2024, Social Security benefit payments increased 3.2% over 2023 based on COLA. Benefits are set to increase again in 2025 by 2.5%.
Retirement Earnings
If you decide to continue working while you're receiving Social Security retirement benefits, your earnings could affect the amount of benefit money you receive. The Social Security Administration sets annual income limits for Social Security recipients, adjusted annually. Limits depend on whether you've reached full retirement age or not.
- If you're below full retirement age, your Social Security benefit will be reduced by $1 for every $2 you earn over the annual limit, which is $22,320 for 2024.
- If you've reached full retirement age, your benefit will be reduced by $1 for every $3 you earn over and above the annual limit, which is $59,520 for 2024.
Learn more >> What Is a Social Security Bridge?
Marital Status
Your Social Security benefits are based on your work history, earnings record and retirement age, so being married doesn't automatically change the amount of retirement benefits you earn.
But a married person may be eligible to receive up to half of their spouse's Social Security benefits, in addition to their own benefits. And if you're divorced after being married for at least 10 years, you may be able to base your benefit on your ex-spouse's salary.
How to Estimate Your Social Security Benefits
Understanding the factors that go into calculating your Social Security payment is helpful, but actually doing these calculations may be beyond the average person's capability (or patience level). Fortunately, the Social Security Administration offers tools to help you create personalized estimates and track changes to your profile as you approach retirement.
1. Get a Quick Estimate Using the Social Security Benefits Calculator
Head to the Social Security Administration's Quick Calculator page, and plug in your current earnings, date of birth and expected retirement date. The Social Security calculator provides a quick estimate of your future monthly benefits.
2. Download your Social Security Statement for a Detailed Summary
You can also set up a free My Social Security account online to get a more detailed summary. (You'll need email or a mobile phone to complete the setup.) After downloading your Social Security statement, you'll see your reported career earnings and progress toward eligibility for Social Security retirement benefits and Medicare.
Your account page includes interactive tools that let you see how your estimated benefits may change at different retirement ages. You can also see how much your spouse and survivors might get after you die.
If you live overseas, you can access your online statements with the Office of Earnings and International Operations.
3. Call or Visit the Social Security Administration
The Social Security Administration says its website is the best way to get help. But if you'd like to speak with someone, you can call the agency at 800-772-1213 between 8 a.m. and 7 p.m. local time, Monday through Friday. It's also possible to visit a local office.
Frequently Asked Questions
You may be eligible for Social Security retirement benefits once you reach age 62, as long as you've worked and paid Social Security taxes for at least 10 years before collecting benefits. You also must be a U.S. citizen or immigrant with legal residency status.
The Social Security Administration allows you to apply for retirement benefits up to four months before you want to start receiving your payments.
If you've paid enough Social Security taxes, your family members may be eligible to relieve Social Security survivor benefits after you die. The monthly payment amount depends on the family member's age and your average lifetime earnings.
Any income you receive in retirement beyond your Social Security benefits may be considered an additional source of income. For instance, you may earn money from running a business or working for an employer. If you're working while receiving Social Security payments, then your benefits may be reduced based on how much you earn through your other income sources.
The Bottom Line
Until you retire and begin collecting Social Security, your potential monthly benefit amount can be a bit of a moving target. Your earnings and retirement date may shift over time. Inflation, too, can have a major impact on how much you receive, and inflation can be hard to predict.
The Social Security Administration recommends visiting your account page annually to check your progress and see how your earnings and any cost-of-living adjustments are affecting your projected benefits. You may want to review your Social Security statement and check your credit reports as part of a regular financial health review.