Note: This is an inflation-adjusted estimate based on Current Dollars.
Understanding Your Social Security Benefits
Planning for retirement requires a clear understanding of your primary safety net: Social Security. This calculator provides an estimate of your future monthly payments based on your current earnings and the age at which you choose to start receiving benefits.
How Your Benefit is Calculated
The Social Security Administration (SSA) uses a specific formula to determine your Primary Insurance Amount (PIA). Here is the general breakdown:
AIME (Average Indexed Monthly Earnings): The SSA looks at your 35 highest-earning years, adjusted for inflation.
Bend Points: The benefit formula applies different percentages to your monthly earnings. In 2024, you receive 90% of the first $1,174 of AIME, 32% of earnings between $1,174 and $7,078, and 15% of any earnings above $7,078.
The Earnings Cap: There is a limit on how much of your income is subject to Social Security taxes and included in benefit calculations (the Social Security Wage Base).
The Impact of Retirement Age
While you can start collecting benefits as early as age 62, your monthly check will be permanently reduced. Conversely, if you wait until age 70, your benefit increases significantly.
Age Range
Benefit Percentage
Age 62
Approx. 70% of PIA
Age 67 (Full Retirement)
100% of PIA
Age 70 (Max Delay)
Approx. 124% of PIA
Key Strategy: Delayed Retirement Credits
For every year you wait past your Full Retirement Age (FRA) until age 70, your benefit increases by roughly 8% per year. This "guaranteed return" is often higher than many conservative investment vehicles, making it a powerful tool for those who are healthy and have other assets to bridge the gap.
Realistic Example
Imagine a 45-year-old individual earning $80,000 per year. If their Full Retirement Age is 67, their monthly benefit might be estimated at $2,600. If they retire early at 62, that benefit drops to roughly $1,820. If they wait until age 70, the monthly payment could jump to over $3,200.
function calculateSSABenefit() {
var currentAge = parseFloat(document.getElementById('currentAge').value);
var annualIncome = parseFloat(document.getElementById('annualIncome').value);
var targetAge = parseFloat(document.getElementById('retirementAge').value);
var salaryGrowth = parseFloat(document.getElementById('salaryGrowth').value) / 100;
if (!currentAge || !annualIncome || !targetAge) {
alert("Please enter all required values.");
return;
}
// SSA Wage Base 2024
var maxWageBase = 168600;
var effectiveIncome = Math.min(annualIncome, maxWageBase);
// Project income to age 67 (FRA) simplified
var yearsToFRA = Math.max(0, 67 – currentAge);
// Note: We use "current dollars" approach common in calculators
// But we adjust slightly for perceived career growth
var projectedFinalIncome = effectiveIncome * Math.pow((1 + (salaryGrowth * 0.5)), yearsToFRA);
var aime = projectedFinalIncome / 12;
// 2024 Bend Points
var b1 = 1174;
var b2 = 7078;
var pia = 0;
if (aime <= b1) {
pia = aime * 0.9;
} else if (aime <= b2) {
pia = (b1 * 0.9) + ((aime – b1) * 0.32);
} else {
pia = (b1 * 0.9) + ((b2 – b1) * 0.32) + ((aime – b2) * 0.15);
}
// Adjustment based on Retirement Age (assuming FRA is 67)
var adjustmentFactor = 1.0;
var fra = 67;
if (targetAge fra) {
// Delayed Credits: 2/3 of 1% per month (8% per year)
var monthsLate = (targetAge – fra) * 12;
adjustmentFactor += (monthsLate * (2/300));
}
var finalMonthlyBenefit = pia * adjustmentFactor;
// Display
document.getElementById('resRetireAge').innerText = targetAge;
document.getElementById('monthlyBenefitDisplay').innerText = "$" + finalMonthlyBenefit.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('resultsArea').style.display = 'block';
document.getElementById('resultsArea').scrollIntoView({ behavior: 'smooth', block: 'nearest' });
}
Social Security Retirement Benefit Calculator
Estimated Results
Estimated Monthly Benefit at Age 67:
Note: This is an inflation-adjusted estimate based on Current Dollars.
Understanding Your Social Security Benefits
Planning for retirement requires a clear understanding of your primary safety net: Social Security. This calculator provides an estimate of your future monthly payments based on your current earnings and the age at which you choose to start receiving benefits.
How Your Benefit is Calculated
The Social Security Administration (SSA) uses a specific formula to determine your Primary Insurance Amount (PIA). Here is the general breakdown:
The Impact of Retirement Age
While you can start collecting benefits as early as age 62, your monthly check will be permanently reduced. Conversely, if you wait until age 70, your benefit increases significantly.
Key Strategy: Delayed Retirement Credits
For every year you wait past your Full Retirement Age (FRA) until age 70, your benefit increases by roughly 8% per year. This "guaranteed return" is often higher than many conservative investment vehicles, making it a powerful tool for those who are healthy and have other assets to bridge the gap.
Realistic Example
Imagine a 45-year-old individual earning $80,000 per year. If their Full Retirement Age is 67, their monthly benefit might be estimated at $2,600. If they retire early at 62, that benefit drops to roughly $1,820. If they wait until age 70, the monthly payment could jump to over $3,200.