US Social Security Guide

How Benefits Are Calculated

Social Security uses your highest 35 years of inflation-adjusted earnings. Each year of $0 earnings (if you worked fewer than 35 years) is averaged in as a zero, dramatically reducing benefits. The Primary Insurance Amount (PIA) is calculated using bend points: 90% of first $1,226/month of average indexed monthly earnings; 32% of $1,227-$7,391; 15% above $7,391 (2025 bend points). This formula heavily favours lower-earners — replacing about 75% of pre-retirement income for low earners but only 2

Full Retirement Age (FRA)

FRA depends on birth year: 1943-1954: 66. 1955: 66 and 2 months. 1956: 66 and 4 months. 1957: 66 and 6 months. 1958: 66 and 8 months. 1959: 66 and 10 months. 1960 or later: 67. You can claim as early as 62 with permanent reduction (about 30% less than FRA benefit). Delaying past FRA earns 8% per year delayed credits until age 70. After 70, no further increase. The math: delaying from FRA (67) to 70 gives 24% more monthly benefit FOREVER. Break-even point vs claiming at FRA: approximately age 82.

When to Claim — Decision Framework

Claim at 62 if: poor health/family longevity history; you NEED the money immediately; you have no other income and would deplete portfolio principal otherwise. Claim at FRA if: average longevity expectation; want simplicity; have other income to bridge between 62 and FRA. Claim at 70 if: good health/family longevity; high earner whose own benefit is much larger than spouse's (spouse can claim against your record); want maximum guaranteed inflation-protected income. Married couples: typically the

Spousal and Survivor Benefits

Married worker eligible for own benefit OR 50% of spouse's benefit at FRA — whichever is higher (not both). Cannot claim spousal until spouse has filed for own benefit. Widowed: can claim survivor benefit (100% of deceased spouse's benefit at FRA) OR own benefit. Strategic claiming: claim one at 62, switch to the other at 70 (if higher). Divorced: if married 10+ years and unremarried, eligible for ex-spouse's record without affecting them. Same-sex couples have full eligibility post-2015 Obergef

Not financial advice. This calculator is for general information and education only. Figures are estimates and may not reflect your circumstances. For decisions, consult the FCA register and a qualified financial adviser. See our editorial standards.

Social Security Benefits Estimator (US)

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