Aarp Social Security Calculator – Cost Calculator

AARP Social Security Benefit Estimator

Use this calculator to get an estimate of your potential Social Security retirement benefits based on your birth year, earnings, and desired claiming age. Understanding how your claiming age impacts your benefits is crucial for retirement planning.

Your Birth Year:

Current Annual Earnings (approximate): This is used to estimate your average indexed monthly earnings. For a precise estimate, refer to your Social Security Statement.

Desired Claiming Age (62-70):

Understanding Your Social Security Benefits

Social Security is a vital component of retirement income for millions of Americans. The amount you receive in benefits is primarily determined by your lifetime earnings and the age at which you choose to start receiving benefits.

How Benefits Are Calculated (Simplified)

Your Social Security benefit is based on your average indexed monthly earnings (AIME) over your 35 highest-earning years. The Social Security Administration (SSA) "indexes" your past earnings to account for changes in average wages over time. This calculator uses your current annual earnings as a simplified proxy for your average indexed earnings to provide an estimate.

Once your AIME is determined, the SSA applies a formula with "bend points" to calculate your Primary Insurance Amount (PIA). The PIA is the benefit you are entitled to receive if you start benefits at your Full Retirement Age (FRA).

Full Retirement Age (FRA)

Your Full Retirement Age (FRA) is the age at which you are entitled to receive 100% of your Primary Insurance Amount (PIA). FRA varies depending on your birth year:

Born 1943-1954: FRA is 66
Born 1955: FRA is 66 and 2 months
Born 1956: FRA is 66 and 4 months
Born 1957: FRA is 66 and 6 months
Born 1958: FRA is 66 and 8 months
Born 1959: FRA is 66 and 10 months
Born 1960 or later: FRA is 67

Claiming benefits before or after your FRA will result in a permanent adjustment to your monthly payment.

Claiming Benefits Early (Age 62 to FRA)

You can start receiving Social Security retirement benefits as early as age 62. However, if you claim before your FRA, your monthly benefit will be permanently reduced. The reduction is approximately 5/9 of 1% for each month up to 36 months early, and 5/12 of 1% for each month beyond 36 months. This means claiming at age 62 can result in a reduction of up to 30% for those with an FRA of 67.

Claiming Benefits Late (After FRA, up to Age 70)

If you delay claiming benefits past your FRA, your monthly payment will increase. For each year you delay, up to age 70, you earn Delayed Retirement Credits (DRCs). For those born in 1943 or later, the annual increase is 8% per year (or 2/3 of 1% per month). Claiming at age 70 can significantly boost your monthly benefit compared to claiming at FRA.

Why Your Claiming Age Matters

The decision of when to claim Social Security is a personal one with significant financial implications. It depends on various factors, including your health, other retirement savings, current income needs, and life expectancy. AARP encourages individuals to carefully consider their options and understand the long-term impact of their claiming decision.

This calculator provides a simplified estimate. For a personalized and precise estimate, it is always recommended to create an account and review your official Social Security Statement on the Social Security Administration website (SSA.gov).

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Determine Full Retirement Age (FRA) var fra = getFRA(birthYear); var fraYears = fra.years; var fraMonths = fra.months; var fraTotalMonths = fraYears * 12 + fraMonths; // 2. Estimate Average Indexed Monthly Earnings (AIME) // This is a simplification. Real AIME calculation is complex, involving indexing 35 highest earning years. // We're using current annual earnings as a proxy for average indexed earnings. var estimatedAIME = currentAnnualEarnings / 12; // 3. Estimate Primary Insurance Amount (PIA) – Benefit at FRA // Using 2024 bend points for PIA calculation var bendPoint1 = 1174; // 90% of first $1,174 var bendPoint2 = 7078; // 32% of amount between $1,174 and $7,078 var estimatedPIA = 0; if (estimatedAIME <= bendPoint1) { estimatedPIA = 0.90 * estimatedAIME; } else if (estimatedAIME maxPIA2024) { estimatedPIA = maxPIA2024; } // 4. Calculate Monthly Benefit at Desired Claiming Age var adjustedBenefit = 0; var desiredClaimingTotalMonths = desiredClaimingAge * 12; if (desiredClaimingTotalMonths < fraTotalMonths) { // Claiming Early: Apply reduction var monthsEarly = fraTotalMonths – desiredClaimingTotalMonths; var reductionRate1 = (5 / 9) / 100; // 5/9 of 1% per month var reductionRate2 = (5 / 12) / 100; // 5/12 of 1% per month (for months beyond 36) var maxMonthsForRate1 = 36; // First 36 months of early claiming var totalReductionPercentage = 0; if (monthsEarly fraTotalMonths) { // Claiming Late: Apply Delayed Retirement Credits (DRCs) var monthsLate = desiredClaimingTotalMonths – fraTotalMonths; var drcRatePerMonth = (8 / 100) / 12; // 8% per year for those born 1943 or later var totalIncreasePercentage = monthsLate * drcRatePerMonth; adjustedBenefit = estimatedPIA * (1 + totalIncreasePercentage); } else { // Claiming at FRA adjustedBenefit = estimatedPIA; } // Calculate benefit at FRA for comparison var benefitAtFRA = estimatedPIA; // Calculate benefit at age 70 for comparison var benefitAt70 = 0; var age70TotalMonths = 70 * 12; if (age70TotalMonths > fraTotalMonths) { var monthsLateFor70 = age70TotalMonths – fraTotalMonths; var drcRatePerMonthFor70 = (8 / 100) / 12; var totalIncreasePercentageFor70 = monthsLateFor70 * drcRatePerMonthFor70; benefitAt70 = estimatedPIA * (1 + totalIncreasePercentageFor70); } else { // If FRA is 70 or later, benefit at 70 is PIA (or reduced if FRA > 70, but not applicable here) benefitAt70 = estimatedPIA; } // Ensure benefits don't go below zero due to extreme early claiming or rounding adjustedBenefit = Math.max(0, adjustedBenefit); benefitAtFRA = Math.max(0, benefitAtFRA); benefitAt70 = Math.max(0, benefitAt70); // Format results var formattedAdjustedBenefit = adjustedBenefit.toLocaleString('en-US', { style: 'currency', currency: 'USD', minimumFractionDigits: 2, maximumFractionDigits: 2 }); var formattedBenefitAtFRA = benefitAtFRA.toLocaleString('en-US', { style: 'currency', currency: 'USD', minimumFractionDigits: 2, maximumFractionDigits: 2 }); var formattedBenefitAt70 = benefitAt70.toLocaleString('en-US', { style: 'currency', currency: 'USD', minimumFractionDigits: 2, maximumFractionDigits: 2 }); resultOutput.innerHTML = "Your Estimated Monthly Benefit at Age " + desiredClaimingAge + ": " + formattedAdjustedBenefit + "" + "Your Full Retirement Age (FRA) is " + fraYears + " years and " + fraMonths + " months." + "Estimated Monthly Benefit at FRA: " + formattedBenefitAtFRA + "" + "Estimated Monthly Benefit at Age 70: " + formattedBenefitAt70 + "" + "These are estimates based on simplified calculations and current Social Security rules. Your actual benefits may vary."; } // Helper function to determine Full Retirement Age (FRA) based on birth year function getFRA(birthYear) { if (birthYear = 1943 && birthYear = 1960) return { years: 67, months: 0 }; return { years: 0, months: 0 }; // Should not happen with valid input range }