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The Social Security Administration calculates retirement benefits using the Primary Insurance Amount (PIA) formula, which applies three rates to portions of your Average Indexed Monthly Earnings (AIME): 90% of the first $1,174, 32% of AIME between $1,174 and $7,078, and 15% of any AIME above $7,078. These are the 2025 bend points. Claiming before full retirement age (67 for those born 1960 or later) permanently reduces the benefit, while delaying past 67 increases it by 8% per year up to age 70. For example, an AIME of $6,000 produces an estimated PIA of approximately $2,600 at age 67, approximately $1,820 at age 62, and approximately $3,224 at age 70. Enter your average indexed monthly earnings and planned claiming age below to see an estimated benefit. This is an estimate for illustrative purposes only and does not constitute benefits advice.

Quick Answer

An AIME of $6,000 with claiming at age 67 (full retirement age) produces an estimated monthly benefit of approximately $2,600. Claiming at 62 reduces it to approximately $1,820, while delaying to 70 increases it to approximately $3,224.

Your AIME is the average of your highest 35 years of indexed earnings divided by 12. Check your Social Security statement for details.

Common Examples

Input Result
$4,000 AIME, claiming at age 67 Estimated $1,961/month benefit
$6,000 AIME, claiming at age 62 Estimated $1,820/month benefit
$6,000 AIME, claiming at age 67 Estimated $2,600/month benefit
$6,000 AIME, claiming at age 70 Estimated $3,224/month benefit
$10,000 AIME, claiming at age 67 Estimated $3,327/month benefit

How It Works

The Social Security Administration calculates retirement benefits in three steps:

Step 1: Determine Average Indexed Monthly Earnings (AIME)

AIME is the average of your highest 35 years of earnings (adjusted for wage inflation), divided by 12 to get a monthly amount. If you have fewer than 35 years of earnings, zeros are included in the average.

Step 2: Apply the PIA Formula (2025 Bend Points)

The Primary Insurance Amount (PIA) is the base monthly benefit at full retirement age. It is calculated as:

  • 90% of the first $1,174 of AIME
  • 32% of AIME between $1,174 and $7,078
  • 15% of AIME above $7,078

Step 3: Adjust for Claiming Age

For those born in 1960 or later, full retirement age (FRA) is 67. Claiming before FRA permanently reduces the benefit:

  • First 36 months early: 5/9 of 1% per month (approximately 6.67% per year)
  • Each additional month beyond 36: 5/12 of 1% per month (5% per year)
  • Claiming at 62 (60 months early) results in a 30% reduction

Delaying past FRA earns delayed retirement credits of 8% per year (2/3 of 1% per month) up to age 70.

Worked Example

For an AIME of $6,000, claiming at age 67:

90% of $1,174 = $1,056.60. 32% of ($6,000 - $1,174) = 32% of $4,826 = $1,544.32. 15% of $0 (AIME does not exceed $7,078) = $0. PIA = $1,056.60 + $1,544.32 = $2,600.92, which rounds to approximately $2,601 per month.

At age 62 (60 months early): reduction = 36 x (5/900) + 24 x (5/1200) = 20% + 10% = 30%. Adjusted benefit = $2,601 x 0.70 = approximately $1,821 per month.

At age 70 (36 months delayed): credits = 36 x (2/300) = 24%. Adjusted benefit = $2,601 x 1.24 = approximately $3,225 per month.

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Frequently Asked Questions

What is AIME and where do I find mine?
Average Indexed Monthly Earnings (AIME) is the average of your highest 35 years of earnings, adjusted for wage growth, divided by 12. You can find your earnings history on your Social Security statement at ssa.gov/myaccount. If you do not know your exact AIME, you can estimate it by dividing your average annual salary (over your career) by 12.
What are bend points?
Bend points are the dollar thresholds in the PIA formula where the replacement rate changes. For 2025, the bend points are $1,174 and $7,078. The SSA adjusts bend points annually based on national average wage growth. The progressive structure means lower earners receive a higher percentage of their earnings as benefits.
How much does claiming early reduce my benefit?
Claiming at age 62 (the earliest possible) with a full retirement age of 67 results in a permanent 30% reduction. For each year you claim before 67, the reduction is approximately 6.67% for the first three years and 5% for each additional year. This reduction is permanent and applies to all future benefit payments.
How much does delaying past 67 increase the benefit?
Each year you delay past full retirement age (67) earns an 8% increase in benefits, up to age 70. Delaying from 67 to 70 increases the benefit by 24%. There is no additional credit for delaying past age 70.
How accurate is this estimate?
This calculator provides a simplified estimate based on the standard PIA formula with 2025 bend points. Actual benefits may differ based on your complete earnings history, cost-of-living adjustments (COLAs), spousal benefits, and other factors. For an official estimate, visit ssa.gov or contact the Social Security Administration directly. This does not constitute benefits advice.