How Much Social Security Will I Get?

The two main elements that affect your Social Security benefit amount are your date of birth and the history of what you’ve earned. However, other factors can also influence the amount you will receive. Depending on when you apply, your benefit might be reduced if you enroll in Medicare Part B or continue to work and earn. Taxes can also be withheld from your benefit.

You can apply for Social Security benefits at any point between ages 62 and 70. The higher your age when you apply, the higher your monthly benefit will be.

The year of your birth is important because Social Security is calculated based on your full retirement age, which is somewhere between 66 and 67 depending on when you were born. It is the point at which you are entitled to receive your full retirement benefits.

If you were born in 1956, your full retirement age is 66 years and 4 months. If you were born in 1960, it is 67 years. Before your full retirement age, your monthly benefit may be reduced if you continue to work. After your full retirement age, it will not.

You can apply for Social Security from age 62 until you turn 70. The earlier you begin to claim Social Security, the lower your benefit amount will be, and you will be locked into that rate.

However, the longer you wait to receive Social Security, the more your benefits will be. For example, if you wait until 70 years old to receive your benefits, you will receive the maximum benefit allowed.

Your compensation history is important because your earnings dictate how much you pay in Social Security taxes. The more you have paid into Social Security taxes, the higher your benefit will be up to a yearly maximum. The maximum is $4,555 per month in 2023, according to an article from the SSA.

Your benefit amount is based on your highest 35 earning years of work. If you worked for more than 35 years, the Social Security Administration (SSA) uses the top 35 years of your earnings. If you worked fewer than 35 years, the SSA enters $0 for any year without earnings, which will automatically lower your monthly benefit amount.

The SSA calculates your benefit based on your earnings history. First, your 35 highest earning years are indexed for inflation, then added together and averaged. Next, that yearly average is divided by 12 to determine your monthly average. Finally, the SSA applies a formula to that monthly average to derive your Primary Insurance Amount (PIA), which is the amount of the monthly benefit you will receive at your full retirement age.

If you’d like to see an estimate of your PIA, then you can use the Social Security Quick Calculator. Note that the result is not a guarantee, nor is it your actual benefit. Instead, it is an approximation you can use when planning your retirement.

The table below shows the 2023 average and maximum monthly Social Security benefit depending on how old you are and when you file.

If you apply for Social Security at 62, you’ll get a smaller payment for longer. If you wait and apply at 70, you’ll receive a larger payment for a shorter time. But deciding when to receive benefits isn’t a one-size-fits-all decision. The best time to apply will depend on your individual situation.

For example, if you are in poor health, cannot continue to work or require Social Security to make ends meet, your best course might be to apply for Social Security as soon as possible. On the other hand, if you have the means to wait, applying at 70 to maximize your benefits might be a better option.

The specifics of your situation will determine the best age and/or time for you to apply for Social Security. If you have questions, don’t hesitate to talk to a trusted financial advisor or check with your local Social Security field office.