Social Security benefits are based on your lifetime earnings. Your actual earnings are adjusted or “indexed” to account for changes in average wages since the year the earnings were received. Then Social Security calculates your average indexed monthly earnings during the 35 years in which you earned the most.
What determines the full amount of Social Security retirement benefits?
Social Security benefits are typically computed using “average indexed monthly earnings.” This average summarizes up to 35 years of a worker’s indexed earnings. We apply a formula to this average to compute the primary insurance amount (PIA). The PIA is the basis for the benefits that are paid to an individual.
How are Social Security benefits calculated at full retirement age?
Then we use the average of your highest 35 years of indexed earnings to calculate your Social Security benefit at full retirement age. Considering when you were born and at what age you want to begin receiving Social Security benefits, we determine how much you can expect to receive at your desired retirement age.
When do you find out your full retirement age?
Find out your full retirement age, which is when you become eligible for unreduced Social Security retirement benefits. The year and month you reach full retirement age depends on the year you were born.
How to find out if you are eligible for Social Security?
To find a financial advisor near you, try our free online matching tool, or call 1-888-217-4199. Who Is Eligible for Social Security Benefits? Anyone who pays into Social Security for at least 40 calendar quarters (10 years) is eligible for retirement benefits based on their earnings record.
Who is eligible for Social Security at full retirement age?
Who Is Eligible for Social Security Benefits? Anyone who pays into Social Security for at least 40 calendar quarters (10 years) is eligible for retirement benefits based on their earnings record. You are eligible for your full benefits once you reach full retirement age, which is either 66 and 67, depending on when you were born.
