Most Americans pay into Social Security for decades without understanding how the benefit is calculated. The formula is more generous to lower earners than most realise.
AIME formula: Take your 35 highest-earning years (inflation-indexed), sum them, divide by 420. Apply the bend points above to get your PIA.
Worked example
Medium earner with AIME of $5,000: 90% x $1,286 = $1,157 + 32% x ($5,000-$1,286) = $1,188. PIA = $2,345/month.
Strategies to increase your benefit
Work at least 35 years — zero-income years drag down your average. Maximise earnings in peak years. Check your earnings record annually at ssa.gov/myaccount.
Use our Retirement Planner to model this.
Frequently asked questions
How does SS calculate my benefit?
Takes your highest 35 years of inflation-adjusted earnings (AIME), applies progressive rates (90%/32%/15%) to get your PIA.
What are 2026 bend points?
$1,286 and $7,749 per month of AIME.
What if I have fewer than 35 years?
Zero-income years are included, significantly reducing your benefit.
How do I find my projected benefit?
Create an account at ssa.gov/myaccount.
Does SS replace all pre-retirement income?
No — approximately 34-62% depending on earnings level.